Document:

DreamWorks Animation SKG, Inc. 2004 Omnibus Incentive Compensation Plan

 EXHIBIT 10.1 
  
 DREAMWORKS ANIMATION SKG, INC. 
 2004 OMNIBUS INCENTIVE COMPENSATION PLAN 
  
 Purpose. The purpose of this DreamWorks Animation SKG, Inc., 2004 Omnibus Incentive Compensation Plan is to promote the interests of DreamWorks Animation SKG, Inc., and its stockholders by (a) attracting and
retaining exceptional directors, officers, employees and consultants (including prospective directors, officers, employees and consultants) of the Company and its Affiliates and (b) enabling such individuals to participate in the long-term growth
and financial success of the Company. 
  
 Definitions. As
used in the Plan, the following terms shall have the meanings set forth below: 
  
 “Affiliate” means (a) any entity that, directly or indirectly, is controlled by, controls or is under common control with, the Company and/or (b) any entity in which the Company has a significant equity
interest, in either case as determined by the Committee. 
  
 “Award” means any award that is permitted under Section 6 and granted under the Plan. 
  
 “Award Agreement” means any written agreement, contract or other instrument or document evidencing any Award, which may, but need not, require
execution or acknowledgment by a Participant. 
  
 “Board” means the Board of Directors of the Company. 
  
 “Cash Incentive Award” shall have the meaning specified in Section 6(g). 
  
 “Change of Control” shall (a) have the meaning set forth in an Award Agreement or (b) if there is no definition set forth in an Award Agreement, mean the occurrence of any of the following events, not
including any events occurring prior to or in connection with an initial public offering of Shares (including the occurrence of such initial public offering): 
  

(i) during any period of 14 consecutive calendar months, individuals who were directors of the Company on the first day of such period
(the “Incumbent Directors”) cease for any reason to constitute a majority of the Board; provided, however, that any individual becoming a director subsequent to the first day of such period whose election, or nomination for
election, by the Company’s stockholders was approved by a vote of at least a majority of the Incumbent Directors shall be considered as though such individual were an Incumbent Director, but excluding, for purposes of this proviso, any such
individual whose initial assumption of office occurs as a result of an actual or threatened proxy contest with respect to election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a
“person” (as 

 
such term is used in Section 13(d) of the Exchange Act) (each, a “Person”), in each case other than the management of the Company, the Board or the
holders of the Company’s Class B common stock, $0.01 par value; 
  
 (ii) the consummation of (A) a merger, consolidation, statutory share exchange or similar form of corporate transaction involving (x) the Company or (y) any of its Subsidiaries, but in the case of this clause (y) only
if Company Voting Securities (as defined below) are issued or issuable (each of the events referred to in this clause (A) being hereinafter referred to as a “Reorganization”) or (B) the sale or other disposition of all or substantially all
the assets of the Company to an entity that is not an Affiliate (a “Sale”) if such Reorganization or Sale requires the approval of the Company’s stockholders under the law of the Company’s jurisdiction of organization (whether
such approval is required for such Reorganization or Sale or for the issuance of securities of the Company in such Reorganization or Sale), unless, immediately following such Reorganization or Sale, (1) all or substantially all the individuals and
entities who were the “beneficial owners” (as such term is defined in Rule 13d-3 under the Exchange Act (or a successor rule thereto)) of the Shares or other securities eligible to vote for the election of the Board (“Company Voting
Securities”) outstanding immediately prior to the consummation of such Reorganization or Sale beneficially own, directly or indirectly, more than 50% of the combined voting power of the then outstanding voting securities of the corporation
resulting from such Reorganization or Sale (including, without limitation, a corporation that as a result of such transaction owns the Company or all or substantially all the Company’s assets either directly or through one or more subsidiaries)
(the “Continuing Corporation”) in substantially the same proportions as their ownership, immediately prior to the consummation of such Reorganization or Sale, of the outstanding Company Voting Securities (excluding any outstanding voting
securities of the Continuing Corporation that such beneficial owners hold immediately following the consummation of the Reorganization or Sale as a result of their ownership prior to such consummation of voting securities of any company or other
entity involved in or forming part of such Reorganization or Sale other than the Company), (2) no Person (excluding (x) any employee benefit plan (or related trust) sponsored or maintained by the Continuing Corporation or any corporation controlled
by the Continuing Corporation, (y) Jeffrey Katzenberg and (z) David Geffen) beneficially owns, directly or indirectly, 20% or more of the combined voting power of the then outstanding voting securities of the Continuing Corporation and (3) at least
a majority of the members of the board of directors of the Continuing Corporation were Incumbent Directors at the time of the execution of the definitive agreement providing for such Reorganization or Sale or, in the absence of such an agreement, at
the time at which approval of the Board was obtained for such Reorganization or Sale; 
  
 (iii) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company; or 
  

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 (iv) any Person, corporation or other entity or “group” (as used in Section
14(d)(2) of the Exchange Act) (other than (A) the Company, (B) any trustee or other fiduciary holding securities under an employee benefit plan of the Company or an Affiliate or (C) any company owned, directly or indirectly, by the stockholders of
the Company in substantially the same proportions as their ownership of the voting power of the Company Voting Securities) becomes the beneficial owner, directly or indirectly, of securities of the Company representing 20% or more of the combined
voting power of the Company Voting Securities but only if the percentage so owned exceeds the aggregate percentage of the combined voting power of the Company Voting Securities then owned, directly or indirectly, by Jeffrey Katzenberg and David
Geffen; provided, however, that for purposes of this subparagraph (iv), the following acquisitions shall not constitute a Change of Control: (x) any acquisition directly from the Company or (y) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Company or an Affiliate. 
  
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated thereunder. 
  
 “Committee” means the compensation committee of the Board, or such other committee of the Board as may be
designated by the Board to administer the Plan. 
  
 “Company” means DreamWorks Animation SKG, Inc., a corporation organized under the laws of Delaware, together with any successor thereto. 
  
 “Deferred Share Unit” means a deferred share unit Award that represents an unfunded and unsecured promise to deliver Shares in accordance with
the terms of the applicable Award Agreement. 
  
 “Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any successor statute thereto. 
  
 “Exercise Price” means (a) in the case of Options, the price specified in the applicable Award Agreement as the price-per-Share at which Shares
may be purchased pursuant to such Option or (b) in the case of SARs, the price specified in the applicable Award Agreement as the reference price-per-Share used to calculate the amount payable to the Participant. 
  
 “Fair Market Value” means (a) with respect to any property other
than Shares, the fair market value of such property determined by such methods or procedures as shall be established from time to time by the Committee and (b) with respect to the Shares, as of any date, (i) the mean between the high and low sales
prices of the Shares (A) as reported by the NYSE for such date or (B) if the Shares are listed on a national stock exchange, as reported on the stock exchange composite tape for securities traded on such stock exchange for such date or, with respect
to each of clauses (A) and (B), if there were no sales on such date, on the closest preceding date on which there were sales of Shares or (ii) in the event there shall be no public market for the Shares on such date, the fair market value of the
Shares as determined in good faith by the Committee. 
  

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 “Incentive Stock Option” means an option to purchase Shares from the Company that (a) is
granted under Section 6 of the Plan and (b) is intended to qualify for special Federal income tax treatment pursuant to Sections 421 and 422 of the Code, as now constituted or subsequently amended, or pursuant to a successor provision of the Code,
and which is so designated in the applicable Award Agreement. 
  
 “Independent Director” means a member of the Board who is neither (a) an employee of the Company nor (b) an employee of any Affiliate, and who, at the time of acting, is a “Non-Employee Director” under Rule 16b-3.

  
 “IRS” means the Internal Revenue Service or any
successor thereto and includes the staff thereof. 
  
 “Nonqualified Stock Option” means an option to purchase Shares from the Company that (a) is granted under Section 6 of the Plan and (b) is not an Incentive Stock Option. 
  
 “NYSE” means the New York Stock Exchange. 
  
 “Option” means an Incentive Stock Option or a Nonqualified Stock
Option or both, as the context requires. 
  
 “Participant” means any director, officer, employee or consultant (including any prospective director, officer, employee or consultant) of the Company or its Affiliates who is eligible for an Award under Section 5 and who is
selected by the Committee to receive an Award under the Plan or who receives a Substitute Award pursuant to Section 4(c). 
  
 “Performance Compensation Award” means any Award designated by the Committee as a Performance Compensation Award pursuant to Section 6(e) of the
Plan. 
  
 “Performance Criteria” means the criterion or
criteria that the Committee shall select for purposes of establishing the Performance Goal(s) for a Performance Period with respect to any Performance Compensation Award under the Plan. 
  
 “Performance Formula” means, for a Performance Period, the one or more objective formulas applied against the
relevant Performance Goal to determine, with regard to the Performance Compensation Award of a particular Participant, whether all, some portion but less than all, or none of the Performance Compensation Award has been earned for the Performance
Period. 
  
 “Performance Goal” means, for a Performance
Period, the one or more goals established by the Committee for the Performance Period based upon the Performance Criteria. 
  

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 “Performance Period” means the one or more periods of time as the Committee may select over
which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant’s right to and the payment of a Performance Compensation Award. 
  
 “Performance Unit” means an Award under Section 6(f) of the Plan that has a value set by the Committee (or that is
determined by reference to a valuation formula specified by the Committee), which value may be paid to the Participant by delivery of such property as the Committee shall determine, including without limitation, cash or Shares, or any combination
thereof, upon achievement of such Performance Goals during the relevant Performance Period as the Committee shall establish at the time of such Award or thereafter. 
  
 “Plan” means this DreamWorks Animation, Inc., 2004 Omnibus Incentive Compensation Plan, as in effect from time to
time. 
  
 “Restricted Share” means a Share delivered
under the Plan that is subject to certain transfer restrictions, forfeiture provisions and/or other terms and conditions specified herein and in the applicable Award Agreement. 
  
 “RSU” means a restricted stock unit Award that is designated as such in the applicable Award Agreement and that
represents an unfunded and unsecured promise to deliver Shares, cash, other securities, other Awards or other property in accordance with the terms of the applicable Award Agreement. 
  
 “Rule 16b-3” means Rule 16b-3 as promulgated and interpreted by the SEC under the Exchange Act or any successor
rule or regulation thereto as in effect from time to time. 
  
 “SAR” means a stock appreciation right Award that represents an unfunded and unsecured promise to deliver Shares, cash, other securities, other Awards or other property equal in value to the excess, if any, of the Fair Market
Value per Share over the Exercise Price per Share of the SAR, subject to the terms of the applicable Award Agreement. 
  
 “SEC” means the Securities and Exchange Commission or any successor thereto and shall include the staff thereof. 
  
 “Shares” means shares of Class A Common Stock of the Company, $0.01
par value, or such other securities of the Company (a) into which such shares shall be changed by reason of a recapitalization, merger, consolidation, split-up, combination, exchange of shares or other similar transaction or (b) as may be determined
by the Committee pursuant to Section 4(b). 
  
 “Subsidiary” means any entity in which the Company, directly or indirectly, possesses fifty percent (50%) or more of the total combined voting power of all classes of its stock. 
  

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 “Substitute Awards” shall have the meaning specified in Section 4(c). 
  
 “Substituted Options” shall have the meaning specified in Section
6(c)(v). 
  
 “Substitution SARs” shall have the meaning
specified in Section 6(c)(v). 
  
 Administration.
a)Composition of Committee. The Plan shall be administered by the Committee, which shall be composed of two or more directors, all of whom shall be Independent Directors and all of whom shall (i) qualify as “outside directors” under
Section 162(m) of the Code and (ii) meet the independence requirements of the NYSE; provided, however, that, prior to the date of the consummation of the initial public offering of Shares, the Committee shall be composed of one or more
members of the Board, as determined by the Board. 
  
 Authority
of Committee. Subject to the terms of the Plan and applicable law, and in addition to other express powers and authorizations conferred on the Committee by the Plan, the Committee shall have sole and plenary authority to administer the Plan,
including, but not limited to, the authority to (i) designate Participants, (ii) determine the type or types of Awards to be granted to a Participant, (iii) determine the number of Shares to be covered by, or with respect to which payments, rights
or other matters are to be calculated in connection with, Awards, (iv) determine the terms and conditions of any Awards, (v) determine the vesting schedules of Awards and, if certain performance criteria must be attained in order for an Award to
vest or be settled or paid, establish such performance criteria and certify whether, and to what extent, such performance criteria have been attained, (vi) determine whether, to what extent and under what circumstances Awards may be settled or
exercised in cash, Shares, other securities, other Awards or other property, or canceled, forfeited or suspended and the method or methods by which Awards may be settled, exercised, canceled, forfeited or suspended, (vii) determine whether, to what
extent and under what circumstances cash, Shares, other securities, other Awards, other property and other amounts payable with respect to an Award shall be deferred either automatically or at the election of the holder thereof or of the Committee,
(viii) interpret, administer, reconcile any inconsistency in, correct any default in and/or supply any omission in, the Plan and any instrument or agreement relating to, or Award made under, the Plan, (ix) establish, amend, suspend or waive such
rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan , (x) accelerate the vesting or exercisability of, payment for or lapse of restrictions on, Awards, (xi) amend an outstanding Award
or grant a replacement Award for an Award previously granted under the Plan if, in its sole discretion, the Committee determines that (A) the tax consequences of such Award to the Company or the Participant differ from those consequences that were
expected to occur on the date the Award was granted or (B) clarifications or interpretations of, or changes to, tax law or regulations permit Awards to be granted that have more favorable tax consequences than initially anticipated and (xii) make
any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. 
  
 Committee Decisions. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations and other decisions under
or with respect 

  

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to the Plan or any Award shall be within the sole and plenary discretion of the Committee, may be made at any time and shall be final, conclusive and binding
upon all Persons, including the Company, any Affiliate, any Participant, any holder or beneficiary of any Award and any stockholder. 
  
 Indemnification. No member of the Board, the Committee or any employee of the Company (each such person, a “Covered Person”) shall be
liable for any action taken or omitted to be taken or any determination made in good faith with respect to the Plan or any Award hereunder. Each Covered Person shall be indemnified and held harmless by the Company against and from (i) any loss,
cost, liability or expense (including attorneys’ fees) that may be imposed upon or incurred by such Covered Person in connection with or resulting from any action, suit or proceeding to which such Covered Person may be a party or in which such
Covered Person may be involved by reason of any action taken or omitted to be taken under the Plan or any Award Agreement and (ii) any and all amounts paid by such Covered Person, with the Company’s approval, in settlement thereof, or paid by
such Covered Person in satisfaction of any judgment in any such action, suit or proceeding against such Covered 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 a
Covered 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 Covered Person giving rise to the
indemnification claim resulted from such Covered Person’s bad faith, fraud or willful criminal act or omission or that such right of indemnification is otherwise prohibited by law or by the Company’s Restated Certificate of Incorporation
or Restated Bylaws. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which Covered Persons may be entitled under the Company’s Restated Certificate of Incorporation or Restated Bylaws, as a
matter of law, or otherwise, or any other power that the Company may have to indemnify such persons or hold them harmless. 
  
 Delegation of Authority to Senior Officers. The Committee may delegate, on such terms and conditions as it determines in its sole and plenary
discretion, to one or more senior officers of the Company the authority to make grants of Awards to officers (other than executive officers), employees and consultants of the Company and its Affiliates (including any prospective officer, employee or
consultant). 
  
 Awards to Independent Directors.
Notwithstanding anything to the contrary contained herein, the Board may, in its sole and plenary discretion, at any time and from time to time, grant Awards to Independent Directors or administer the Plan with respect to such Awards. In any such
case, the Board shall have all the authority and responsibility granted to the Committee herein. 
  
 Shares Available for Awards. b)Shares Available. Subject to adjustment as provided in Section 4(b), (i) the aggregate number of Shares that
may be delivered pursuant to Awards granted under the Plan shall be 15,000,000, of which the maximum 

  

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number of Shares that may be delivered pursuant to Incentive Stock Options granted under the Plan shall be 5,000,000 and (ii) the maximum number of Shares
with respect to which Awards may be granted to any Participant in any fiscal year of the Company shall be 2,000,000. If, after the effective date of the Plan, any Award granted under the Plan is forfeited, or otherwise expires, terminates or is
canceled without the delivery of Shares, then the Shares covered by such forfeited, expired, terminated or canceled Award shall again become available to be delivered pursuant to Awards under the Plan. If Shares issued upon exercise, vesting or
settlement of an Award, or Shares owned by a Participant (which are not subject to any pledge or other security interest and which have been owned by the Participant for at least six months), are surrendered or tendered to the Company in payment of
the Exercise Price of an Award or any taxes required to be withheld in respect of an Award, in each case, in accordance with the terms and conditions of the Plan and any applicable Award Agreement, such surrendered or tendered Shares shall again
become available to be delivered pursuant to Awards under the Plan; provided, however, that in no event shall such Shares increase the number of Shares that may be delivered pursuant to Incentive Stock Options granted under the Plan.

  
 Adjustments for Changes in Capitalization and Similar
Events. In the event that the Committee determines that any dividend or other distribution (whether in the form of cash, Shares, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company, or other similar corporate transaction
or event affects the Shares such that an adjustment is determined by the Committee in its discretion to be appropriate or desirable, then the Committee shall, (i) in such manner as it may deem equitable or desirable, adjust any or all of (A) the
number of Shares or other securities of the Company (or number and kind of other securities or property) with respect to which Awards may be granted, including (1) the aggregate number of Shares that may be delivered pursuant to Awards granted under
the Plan, as provided in Section 4(a) and (2) the maximum number of Shares or other securities of the Company (or number and kind of other securities or property) with respect to which Awards may be granted to any Participant in any fiscal year of
the Company and (B) the terms of any outstanding Award, including (1) the number of Shares or other securities of the Company (or number and kind of other securities or property) subject to outstanding Awards or to which outstanding Awards relate
and (2) the Exercise Price with respect to any Award or (ii) if deemed appropriate or desirable, make provision for a cash payment to the holder of an outstanding Award in consideration for the cancelation of such Award, including, in the case of an
outstanding Option or SAR, a cash payment to the holder of such Option or SAR in consideration for the cancelation of such Option or SAR in an amount equal to the excess, if any, of the Fair Market Value (as of a date specified by the Committee) of
the Shares subject to such Option or SAR over the aggregate Exercise Price of such Option or SAR (it being understood that, in such event, any Option or SAR having a per Share Exercise Price equal to, or in excess of, the Fair Market Value of a
Share subject to such Option or SAR may be canceled and terminated without any payment or consideration therefor). 
  

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 Substitute Awards. Awards may, in the discretion of the Committee, be granted under the Plan in
assumption of, or in substitution for, outstanding awards previously granted by the Company or any of its Affiliates or a company acquired by the Company or with which the Company combines (“Substitute Awards”). The number of Shares
underlying any Substitute Awards shall be counted against the aggregate number of Shares available for Awards under the Plan; provided, however, that Substitute Awards issued in connection with the assumption of, or in substitution
for, outstanding awards previously granted by an entity that is acquired by the Company or any of its Affiliates through a merger or acquisition shall not be counted against the aggregate number of Shares available for Awards under the Plan;
provided further, however, that Substitute Awards issued in connection with the assumption of, or in substitution for, outstanding stock options intended to qualify for special tax treatment under Sections 421 and 422 of the Code that
were previously granted by an entity that is acquired by the Company or any of its Affiliates through a merger or acquisition shall be counted against the aggregate number of Shares available for Incentive Stock Options under the Plan. 

 
 Sources of Shares Deliverable Under Awards. Any Shares delivered
pursuant to an Award may consist, in whole or in part, of authorized and unissued Shares or of treasury Shares. 
  
 Eligibility. Any director, officer, employee or consultant (including any prospective director, officer, employee or consultant) of the Company or
any of its Affiliates shall be eligible to be designated a Participant. 
  
 Awards. c)Types of Awards. Awards may be made under the Plan in the form of (i) Options, (ii) SARs, (iii) Restricted Shares, (iv) RSUs, (v) Performance Units, (vi) Cash Incentive Awards, (vii) Deferred Share Units and (viii)
other equity-based or equity-related Awards that the Committee determines are consistent with the purpose of the Plan and the interests of the Company. Awards may be granted in tandem with other Awards. No Incentive Stock Option (other than an
Incentive Stock Option that may be assumed or issued by the Company in connection with a transaction to which Section 424(a) of the Code applies) may be granted to a person who is ineligible to receive an Incentive Stock Option under the Code.

  
 Options. d)Grant. Subject to the provisions of
the Plan, the Committee shall have sole and plenary authority to determine the Participants to whom Options shall be granted, the number of Shares to be covered by each Option, whether the Option will be an Incentive Stock Option or a Nonqualified
Stock Option and the conditions and limitations applicable to the vesting and exercise of the Option. In the case of Incentive Stock Options, the terms and conditions of such grants shall be subject to and comply with such rules as may be prescribed
by Section 422 of the Code and any regulations related thereto, as may be amended from time to time. All Options granted under the Plan shall be Nonqualified Stock Options unless the applicable Award Agreement expressly states that the Option is
intended to be an Incentive Stock Option. If an Option is intended to be an Incentive Stock Option, and if for any reason such Option (or any portion thereof) shall not qualify as an Incentive Stock Option, then, to the extent of such
nonqualification, such Option (or portion thereof) shall be regarded as a Nonqualified 

  

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Stock Option appropriately granted under the Plan, provided that such Option (or portion thereof) otherwise complies with the Plan’s requirements
relating to Nonqualified Stock Options. 
  
 Exercise
Price. Except as otherwise established by the Committee at the time an Option is granted and set forth in the applicable Award Agreement, the Exercise Price of each Share covered by an Option shall be not less than 100% of the Fair Market Value
of such Share (determined as of the date the Option is granted); provided, however, that (A) except as otherwise established by the Committee at the time an Option is granted and set forth in the applicable Award Agreement, the
Exercise Price of each Share covered by an Option that is granted effective as of the Company’s initial public offering of Shares shall be the initial public offering price per Share and (B) in the case of an Incentive Stock Option granted to
an employee who, at the time of the grant of such Option, owns stock representing more than 10% of the voting power of all classes of stock of the Company or any Affiliate, the per Share Exercise Price shall be no less than 110% of the Fair Market
Value per Share on the date of the grant. Options are intended to qualify as “qualified performance-based compensation” under Section 162(m) of the Code. 
  
 Vesting and Exercise. Each Option shall be vested and exercisable at such times, in such manner and subject to such
terms and conditions as the Committee may, in its sole and plenary discretion, specify in the applicable Award Agreement or thereafter. Except as otherwise specified by the Committee in the applicable Award Agreement, an Option may only be exercised
to the extent that it has already vested at the time of exercise. Except as otherwise specified by the Committee in the Award Agreement, Options shall become vested and exercisable with respect to one-fourth of the Shares subject to such Options on
each of the first four anniversaries of the date of grant. An Option shall be deemed to be exercised when written or electronic notice of such exercise has been given to the Company in accordance with the terms of the Award by the person entitled to
exercise the Award and full payment pursuant to Section 6(b)(iv) for the Shares with respect to which the Award is exercised has been received by the Company. Exercise of an Option in any manner shall result in a decrease in the number of Shares
that thereafter may be available for sale under the Option and, except as expressly set forth in Section 4(c), in the number of Shares that may be available for purposes of the Plan, by the number of Shares as to which the Option is exercised. The
Committee may impose such conditions with respect to the exercise of Options, including, without limitation, any relating to the application of Federal or state securities laws, as it may deem necessary or advisable. 
  
 Payment. i)No Shares shall be delivered pursuant to any exercise of
an Option until payment in full of the aggregate Exercise Price therefor is received by the Company, and the Participant has paid to the Company an amount equal to any Federal, state, local and foreign income and employment taxes required to be
withheld. Such payments may be made in cash (or its equivalent) or, in the Committee’s sole and plenary discretion, (1) by exchanging Shares owned by the Participant (which are not the subject of any pledge or other security interest and which
have been owned by such Participant for at least six months) or (2) if there shall be a public market for the Shares at 

  

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such time, subject to such rules as may be established by the Committee, through delivery of irrevocable instructions to a broker to sell the Shares
otherwise deliverable upon the exercise of the Option and to deliver promptly to the Company an amount equal to the aggregate Exercise Price, or by a combination of the foregoing; provided that the combined value of all cash and cash
equivalents and the Fair Market Value of any such Shares so tendered to the Company as of the date of such tender is at least equal to such aggregate Exercise Price and the amount of any Federal, state, local or foreign income or employment taxes
required to be withheld, if applicable. 
  
 Wherever in the Plan
or any Award Agreement a Participant is permitted to pay the Exercise Price of an Option or taxes relating to the exercise of an Option by delivering Shares, the Participant may, subject to procedures satisfactory to the Committee, satisfy such
delivery requirement by presenting proof of beneficial ownership of such Shares, in which case the Company shall treat the Option as exercised without further payment and shall withhold such number of Shares from the Shares acquired by the exercise
of the Option. 
  
 Expiration. Except as otherwise set
forth in the applicable Award Agreement, each Option shall expire immediately, without any payment, upon the earlier of (A) the tenth anniversary of the date the Option is granted and (B) 90 days after the date the Participant who is holding the
Option ceases to be a director, officer, employee or consultant of the Company or one of its Affiliates. In no event may an Option be exercisable after the tenth anniversary of the date the Option is granted. 
  
 Buyout. The Committee may, in its sole and plenary discretion, at any
time buy out for a payment in cash or the delivery of Shares or other property (including another Award), an Option previously granted, based on such terms and conditions as the Committee shall establish and communicate to the holder of the Option
at the time that such offer is made. If the Committee so determines, the consent of the affected Participant shall not be required to effect such buyout. 
  
 SARs. e)Grant. Subject to the provisions of the Plan, the Committee shall have sole and plenary authority to determine the Participants to
whom SARs shall be granted, the number of Shares to be covered by each SAR, the Exercise Price thereof and the conditions and limitations applicable to the exercise thereof. SARs may be granted in tandem with another Award, in addition to another
Award or freestanding and unrelated to another Award. SARs granted in tandem with, or in addition to, an Award may be granted either at the same time as the Award or at a later time. 
  
 Exercise Price. Except as otherwise established by the Committee at the time a SAR is granted and set forth in the
applicable Award Agreement, the Exercise Price of each Share covered by a SAR shall be not less than 100% of the Fair Market Value of such Share (determined as of the date the SAR is granted). SARs are intended to qualify as “qualified
performance-based compensation” under Section 162(m) of the Code. 
  

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 Exercise. A SAR shall entitle the Participant to receive an amount equal to the excess, if any,
of the Fair Market Value of a Share on the date of exercise of the SAR over the Exercise Price thereof. The Committee shall determine, in its sole and plenary discretion, whether a SAR shall be settled in cash, Shares, other securities, other
Awards, other property or a combination of any of the foregoing. 
  
 Other Terms and Conditions. Subject to the terms of the Plan and any applicable Award Agreement, the Committee shall determine, at or after the grant of a SAR, the vesting criteria, term, methods of exercise, methods and form of
settlement and any other terms and conditions of any SAR. Any such determination by the Committee may be changed by the Committee from time to time and may govern the exercise of SARs granted or exercised thereafter. The Committee may impose such
conditions or restrictions on the exercise of any SAR as it shall deem appropriate or desirable. 
  
 Substitution SARs. Only in the event the Company is not accounting for equity compensation under Accounting Principles Board Opinion No. 25,
“Accounting for Stock Issued to Employees”, the Committee shall have the ability to substitute, without the consent of the affected Participant or any holder or beneficiary of SARs, SARs settled in Shares (or SARs settled in Shares or cash
in the Committee’s discretion) (“Substitution SARs”) for outstanding Nonqualified Stock Options (“Substituted Options”); provided that (A) the substitution shall not otherwise result in a modification of
the terms of any Substituted Option, (B) the number of Shares underlying the Substitution SARs shall be the same as the number of Shares underlying the Substituted Options and (C) the Exercise Price of the Substitution SARs shall be equal to the
Exercise Price of the Substituted Options. If, in the opinion of the Company’s auditors, this provision creates adverse accounting consequences for the Company, it shall be considered null and void. 
  
 Restricted Shares and RSUs. f)Grant. Subject to the provisions
of the Plan, the Committee shall have sole and plenary authority to determine the Participants to whom Restricted Shares and RSUs shall be granted, the number of Restricted Shares and RSUs to be granted to each Participant, the duration of the
period during which, and the conditions, if any, under which, the Restricted Shares and RSUs may vest or may be forfeited to the Company and the other terms and conditions of such Awards. 
  
 Transfer Restrictions. Restricted Shares and RSUs may not be sold, assigned, transferred, pledged or otherwise
encumbered except as provided in the Plan or as may be provided in the applicable Award Agreement; provided, however, that the Committee may in its discretion determine that Restricted Shares and RSUs may be transferred by the
Participant. Certificates issued in respect of Restricted Shares shall be registered in the name of the Participant and deposited by such Participant, together with a stock power endorsed in blank, with the Company or such other custodian as may be
designated by the Committee or the Company, and shall be held by the Company or other custodian, as applicable, until such time as the restrictions applicable to such Restricted Shares lapse. Upon the lapse of the restrictions applicable to such
Restricted Shares, the Company or other custodian, as applicable, shall deliver such certificates to the Participant or the Participant’s legal representative. 
  

 12 

 Payment/Lapse of Restrictions. Each RSU shall have a value equal to the Fair Market Value of a
Share. RSUs shall be paid in cash, Shares, other securities, other Awards or other property, as determined in the sole and plenary discretion of the Committee, upon the lapse of restrictions applicable thereto, or otherwise in accordance with the
applicable Award Agreement. If a Restricted Share or an RSU is intended to qualify as “qualified performance-based compensation” under Section 162(m) of the Code, all requirements set forth in Section 6(e) must be satisfied in order for
the restrictions applicable thereto to lapse. 
  
 Performance
Compensation Awards. i) General. The Committee shall have the authority, at the time of grant of any Award, to designate such Award (other than Options and SARs) as a Performance Compensation Award in order to qualify such Award as
“qualified performance-based compensation” under Section 162(m) of the Code. Options and SARs granted under the Plan shall not be included among Awards that are designated as Performance Compensation Awards under this Section 6(e).

  
 Eligibility. The Committee shall, in its sole
discretion, designate within the first 90 days of a Performance Period (or, if shorter, within the maximum period allowed under Section 162(m) of the Code) which Participants will be eligible to receive Performance Compensation Awards in respect of
such Performance Period. However, designation of a Participant eligible to receive an Award hereunder for a Performance Period shall not in any manner entitle the Participant to receive payment in respect of any Performance Compensation Award for
such Performance Period. The determination as to whether or not such Participant becomes entitled to payment in respect of any Performance Compensation Award shall be decided solely in accordance with the provisions of this Section 6(e). Moreover,
designation of a Participant eligible to receive an Award hereunder for a particular Performance Period shall not require designation of such Participant eligible to receive an Award hereunder in any subsequent Performance Period and designation of
one person as a Participant eligible to receive an Award hereunder shall not require designation of any other person as a Participant eligible to receive an Award hereunder in such period or in any other period. 
  
 Discretion of Committee with Respect to Performance Compensation
Awards. With regard to a particular Performance Period, the Committee shall have full discretion to select the length of such Performance Period, the type(s) of Performance Compensation Awards to be issued, the Performance Criteria that will be
used to establish the Performance Goal(s), the kind(s) and/or level(s) of the Performance Goals(s) that is (are) to apply to the Company or any of its Subsidiaries, Affiliates, divisions or operational units, or any combination of the foregoing, and
the Performance Formula. Within the first 90 days of a Performance Period (or, if shorter, within the maximum period allowed under Section 162(m) of the Code), the Committee shall, with regard to the Performance Compensation Awards to be issued for
such Performance Period, exercise its discretion with respect to each of the matters enumerated in the immediately preceding sentence and record the same in writing. 
  

 13 

 Performance Criteria. Notwithstanding the foregoing, the Performance Criteria that will be used
to establish the Performance Goal(s) shall be based on the attainment of specific levels of performance of the Company or any of its Subsidiaries, Affiliates, divisions or operational units, or any combination of the foregoing, and shall be limited
to the following: (A) net income before or after taxes, (B) earnings before or after taxes (including earnings before interest, taxes, depreciation and amortization), (C) operating income, (D) earnings per share, (E) return on shareholders’
equity, (F) return on investment, (G) return on assets, (H) level or amount of acquisitions, (I) share price, (J) profitability/profit margins, (K) market share, (L) revenues or sales (based on units and/or dollars), (M) costs, (N) cash flow, (O)
working capital and (P) completion of production or stages of production within specified time and/or budget parameters. Such performance criteria may be applied on an absolute basis and/or be relative to one or more peer companies of the Company or
indices or any combination thereof. To the extent required under Section 162(m) of the Code, the Committee shall, within the first 90 days of the applicable Performance Period (or, if shorter, within the maximum period allowed under Section 162(m)
of the Code), define in an objective fashion the manner of calculating the Performance Criteria it selects to use for such Performance Period. 
  
 Modification of Performance Goals. The Committee is authorized at any time during the first 90 days of a Performance Period (or, if shorter,
within the maximum period allowed under Section 162(m) of the Code), or any time thereafter (but only to the extent the exercise of such authority after such 90-day period (or such shorter period, if applicable) would not cause the Performance
Compensation Awards granted to any Participant for the Performance Period to fail to qualify as “qualified performance-based compensation” under Section 162(m) of the Code), in its sole and plenary discretion, to adjust or modify the
calculation of a Performance Goal for such Performance Period to the extent permitted under Section 162(m) of the Code (A) in the event of, or in anticipation of, any unusual or extraordinary corporate item, transaction, event or development
affecting the Company, or any of its Affiliates, Subsidiaries, divisions or operating units (to the extent applicable to such Performance Goal) or (B) in recognition of, or in anticipation of, any other unusual or nonrecurring events affecting the
Company or any of its Affiliates, Subsidiaries, divisions or operating units (to the extent applicable to such Performance Goal), or the financial statements of the Company or any of its Affiliates, Subsidiaries, divisions or operating units (to the
extent applicable to such Performance Goal), or of changes in applicable rules, rulings, regulations or other requirements of any governmental body or securities exchange, accounting principles, law or business conditions. 
  
 Payment of Performance Compensation Awards. (1)Condition to
Receipt of Payment. A Participant must be employed by the Company on the last day of a Performance Period to be eligible for payment in respect of a Performance Compensation Award for such Performance Period. Notwithstanding the foregoing, in
the discretion of the Committee, Performance Compensation Awards may be paid to Participants who have retired or whose employment has terminated after the beginning of the Performance Period for which a Performance Compensation Award is made, or to
the designee or estate of a Participant who died prior to the last day of a Performance Period. 
  

 14 

 Limitation. A Participant shall be eligible to receive payments in respect of a Performance
Compensation Award only to the extent that (1) the Performance Goal(s) for such period are achieved and certified by the Committee in accordance with Section 6(e)(vi)(C) and (2) the Performance Formula as applied against such Performance Goal(s)
determines that all or some portion of such Participant’s Performance Compensation Award has been earned for the Performance Period. 
  
 Certification. Following the completion of a Performance Period, the Committee shall meet to review and certify in writing whether, and to what
extent, the Performance Goals for the Performance Period have been achieved and, if so, to calculate and certify in writing that amount of the Performance Compensation Awards earned for the period based upon the Performance Formula. The Committee
shall then determine the actual size of each Participant’s Performance Compensation Award for the Performance Period and, in so doing, may apply negative discretion as authorized by Section 6(e)(vi)(D). 
  
 Negative Discretion. In determining the actual size of an individual
Performance Compensation Award for a Performance Period, the Committee may, in its sole and plenary discretion, reduce or eliminate the amount of the Award earned in the Performance Period, even if applicable Performance Goals have been attained.

  
 Timing of Award Payments. The Performance Compensation
Awards granted for a Performance Period shall be paid to Participants as soon as administratively possible following completion of the certifications required by Section 6(e)(vi)(C), unless the Committee shall determine that any Performance
Compensation Award shall be deferred. 
  
 Discretion.
In no event shall any discretionary authority granted to the Committee by the Plan be used to (1) grant or provide payment in respect of Performance Compensation Awards for a Performance Period if the Performance Goals for such Performance
Period have not been attained, (2) increase a Performance Compensation Award for any Participant at any time after the first 90 days of the Performance Period (or, if shorter, the maximum period allowed under Section 162(m)) or (3) increase a
Performance Compensation Award above the maximum amount payable under Sections 4(a) or 6(g) of the Plan. 
  
 Performance Units. ii)Grant. Subject to the provisions of the Plan, the Committee shall have sole and plenary authority to determine the
Participants to whom Performance Units shall be granted.  
  
 Value of Performance Units. Each Performance Unit shall have an initial value that is established by the Committee at the time of grant. The Committee shall set Performance Goals in its discretion which, depending on the extent to
which they are met during a Performance Period, will determine the number and/or value of Performance Units that will be paid out to the Participant. 
  

 15 

 Earning of Performance Units. Subject to the provisions of the Plan, after the applicable
Performance Period has ended, the holder of Performance Units shall be entitled to receive a payout of the number and value of Performance Units earned by the Participant over the Performance Period, to be determined by the Committee, in its sole
and plenary discretion, as a function of the extent to which the corresponding Performance Goals have been achieved. 
  
 Form and Timing of Payment of Performance Units. Subject to the provisions of the Plan, the Committee, in its sole and plenary discretion, may pay
earned Performance Units in the form of cash or in Shares (or in a combination thereof) that has an aggregate Fair Market Value equal to the value of the earned Performance Units at the close of the applicable Performance Period. Such Shares may be
granted subject to any restrictions in the applicable Award Agreement deemed appropriate by the Committee. The determination of the Committee with respect to the form and timing of payout of such Awards shall be set forth in the applicable Award
Agreement. If a Performance Unit is intended to qualify as “qualified performance-based compensation” under Section 162(m) of the Code, all requirements set forth in Section 6(e) must be satisfied in order for a Participant to be entitled
to payment. 
  
 Cash Incentive Awards. Subject to the
provisions of the Plan, the Committee, in its sole and plenary discretion, shall have the authority to grant Cash Incentive Awards. The Committee shall establish Cash Incentive Award levels to determine the amount of a Cash Incentive Award payable
upon the attainment of Performance Goals. No Cash Incentive Award under the Plan shall exceed $6,000,000 during any Performance Period. If a Cash Incentive Award is intended to qualify as “qualified performance-based compensation” under
Section 162(m) of the Code, all requirements set forth in Section 6(e) must be satisfied in order for a Participant to be entitled to payment. 
  
 Other Stock-Based Awards. Subject to the provisions of the Plan, the Committee shall have the sole and plenary authority to grant to Participants
other equity-based or equity-related Awards (including, but not limited to, Deferred Share Units and fully-vested Shares) in such amounts and subject to such terms and conditions as the Committee shall determine, provided that any such Awards must
comply, to the extent deemed desirable by the Committee, with Rule 16b-3 and applicable law. 
  
 Dividend Equivalents. In the sole and plenary discretion of the Committee, an Award, other than an Option or SAR or a Cash Incentive Award, may provide the Participant with dividends or dividend equivalents,
payable in cash, Shares, other securities, other Awards or other property, on a current or deferred basis, on such terms and conditions as may be determined by the Committee in its sole and plenary discretion, including, without limitation, payment
directly to the Participant, withholding of such amounts by the Company subject to vesting of the Award or reinvestment in additional Shares, Restricted Shares or other Awards. 
  
 Amendment and Termination. g)Amendments to the Plan. Subject to any government regulation, to any requirement
that must be satisfied if the Plan is intended to 

  

 16 

 
be a shareholder approved plan for purposes of Section 162(m) of the Code and to the rules of the NYSE or any successor exchange or quotation system on which
the Shares may be listed or quoted, the Plan may be amended, modified or terminated by the Board without the approval of the stockholders of the Company except that stockholder approval shall be required for any amendment that would (i) increase the
maximum number of Shares for which Awards may be granted under the Plan or increase the maximum number of Shares that may be delivered pursuant to Incentive Stock Options granted under the Plan; provided, however, that any adjustment
under Section 4(b) shall not be increases for purposes of this Section 7(a) or (ii) change the class of employees or other individuals eligible to participate in the Plan. No modification, amendment or termination of the Plan may, without the
consent of the Participant to whom any Award shall theretofore have been granted, materially and adversely affect the rights of such Participant (or his or her transferee) under such Award, unless otherwise provided by the Committee in the
applicable Award Agreement. 
  
 Amendments to Awards. The
Committee may waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate any Award theretofore granted, prospectively or retroactively; provided, however, that, except as set forth in
Section 6(e)(vi)(D), unless otherwise provided by the Committee in the applicable Award Agreement, any such waiver, amendment, alteration, suspension, discontinuance, cancelation or termination that would materially and adversely impair the rights
of any Participant or any holder or beneficiary of any Award theretofore granted shall not to that extent be effective without the consent of the impaired Participant, holder or beneficiary. 
  
 Adjustment of Awards Upon the Occurrence of Certain Unusual or
Nonrecurring Events. The Committee is hereby authorized to 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(b) hereof or the occurrence of a Change of Control) affecting the Company, any Affiliate, or the financial statements of the Company or any Affiliate, or of changes in applicable rules, rulings, regulations or other
requirements of any governmental body or securities exchange, accounting principles or law (i) whenever the Committee, in its sole and plenary discretion, determines that such adjustments are appropriate or desirable, including, without limitation,
providing for a substitution or assumption of Awards, accelerating the exercisability of, lapse of restrictions on, or termination of, Awards or providing for a period of time for exercise prior to the occurrence of such event and (ii) if deemed
appropriate or desirable by the Committee, in its sole and plenary discretion, by providing for a cash payment to the holder of an Award in consideration for the cancelation of such Award, including, in the case of an outstanding Option or SAR, a
cash payment to the holder of such Option or SAR in consideration for the cancelation of such Option or SAR in an amount equal to the excess, if any, of the Fair Market Value (as of a date specified by the Committee) of the Shares subject to such
Option or SAR over the aggregate Exercise Price of such Option or SAR (it being understood that, in such event, any Option or SAR having a per Share Exercise Price equal to, or in excess of, the Fair Market Value of a Share subject to such Option or
SAR may be canceled and terminated without any payment or consideration therefor). 
  

 17 

 Change of Control. Unless otherwise provided in the applicable Award Agreement, in the event of a
Change of Control after the date of the adoption of the Plan, unless provision is made in connection with the Change of Control for (a) assumption of Awards previously granted or (b) substitution for such Awards of new awards covering stock of a
successor corporation or its “parent corporation” (as defined in Section 424(e) of the Code) or “subsidiary corporation” (as defined in Section 424(f) of the Code) with appropriate adjustments as to the number and kinds of shares
and the Exercise Prices, if applicable, (i) any outstanding Options or SARs then held by Participants that are unexercisable or otherwise unvested shall automatically be deemed exercisable or otherwise vested, as the case may be, as of immediately
prior to such Change of Control, (ii) all Performance Units and Cash Incentive Awards shall be paid out as if the date of the Change of Control were the last day of the applicable Performance Period and “target” performance levels had been
attained and (iii) all other outstanding Awards (i.e., other than Options, SARs, Performance Units and Cash Incentive Awards) then held by Participants that are unexercisable, unvested or still subject to restrictions or forfeiture, shall
automatically be deemed exercisable or vested and all restrictions and forfeiture provisions related thereto shall lapse as of immediately prior to such Change of Control. 
  
 General Provisions. 2)Nontransferability. Except as otherwise specified in the applicable Award Agreement,
during the Participant’s lifetime each Award (and any rights and obligations thereunder) shall be exercisable only by the Participant, or, if permissible under applicable law, by the Participant’s legal guardian or representative, and no
Award (or any rights and obligations thereunder) may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant otherwise than by will or by the laws of descent and distribution, and any such purported
assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate; provided that (i) the designation of a beneficiary shall not constitute an assignment, alienation,
pledge, attachment, sale, transfer or encumbrance and (ii) the Board or the Committee may permit further transferability, on a general or specific basis, and may impose conditions and limitations on any permitted transferability; provided,
however, that Incentive Stock Options granted under the Plan shall not be transferable in any way that would violate Section 1.422-2(a)(2) of the Treasury Regulations. All terms and conditions of the Plan and all Award Agreements shall be
binding upon any permitted successors and assigns. 
  
 No
Rights to Awards. No Participant or other Person shall have any claim to be granted any Award, and there is no obligation for uniformity of treatment of Participants or holders or beneficiaries of Awards. The terms and conditions of Awards and
the Committee’s determinations and interpretations with respect thereto need not be the same with respect to each Participant and may be made selectively among Participants, whether or not such Participants are similarly situated. 

 
 Share Certificates. All certificates for Shares or other securities
of the Company or any Affiliate delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan, the applicable Award
Agreement or the rules, regulations and other requirements of the SEC, the NYSE or any other stock 

  

 18 

 
exchange or quotation system upon which such Shares or other securities are then listed or reported and any applicable Federal or state laws, and the
Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 
  
 Withholding. (i) Authority to Withhold. A Participant may be required to pay to the Company or any Affiliate, and the Company or any
Affiliate shall have the right and is hereby authorized to withhold from any Award, from any payment due or transfer made under any Award or under the Plan or from any compensation or other amount owing to a Participant, the amount (in cash, Shares,
other securities, other Awards or other property) of any applicable withholding taxes in respect of an Award, its exercise or any payment or transfer under an Award or under the Plan and to take such other action as may be necessary in the opinion
of the Committee or the Company to satisfy all obligations for the payment of such taxes. 
  
 (ii) Alternative Ways to Satisfy Withholding Liability. Without limiting the generality of clause (i) above, a Participant may satisfy, in whole or
in part, the foregoing withholding liability by delivery of Shares owned by the Participant (which are not subject to any pledge or other security interest and which have been owned by the Participant for at least six months) having a Fair Market
Value equal to such withholding liability or by having the Company withhold from the number of Shares otherwise issuable pursuant to the exercise of the Option or SAR, or the lapse of the restrictions on any other Awards (in the case of SARs and
other Awards, if such SARs and other Awards are settled in Shares), a number of Shares having a Fair Market Value equal to such withholding liability. 
  
 Award Agreements. Each Award hereunder shall be evidenced by an Award Agreement, which shall be delivered to the Participant and shall specify the
terms and conditions of the Award and any rules applicable thereto, including, but not limited to, the effect on such Award of the death, disability or termination of employment or service of a Participant and the effect, if any, of such other
events as may be determined by the Committee. 
  
 No Limit on
Other Compensation Arrangements. Nothing contained in the Plan shall prevent the Company or any Affiliate from adopting or continuing in effect other compensation arrangements, which may, but need not, provide for the grant of options,
restricted stock, shares and other types of equity-based awards (subject to stockholder approval if such approval is required), and such arrangements may be either generally applicable or applicable only in specific cases. 
  
 No Right to Employment. The grant of an Award shall not be construed
as giving a Participant the right to be retained as a director, officer, employee or consultant of or to the Company or any Affiliate, nor shall it be construed as giving a Participant any rights to continued service on the Board. Further, the
Company or an Affiliate may at any time dismiss a Participant from employment or discontinue any consulting relationship, free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan or in any Award Agreement.

  

 19 

 No Rights as Stockholder. No Participant or holder or beneficiary of any Award shall have any
rights as a stockholder with respect to any Shares to be distributed under the Plan until he or she has become the holder of such Shares. In connection with each grant of Restricted Shares, except as provided in the applicable Award Agreement, the
Participant shall not be entitled to the rights of a stockholder in respect of such Restricted Shares. Except as otherwise provided in Section 4(b), Section 7(c) or the applicable Award Agreement, no adjustments shall be made for dividends or
distributions on (whether ordinary or extraordinary, and whether in cash, Shares, other securities or other property), or other events relating to, Shares subject to an Award for which the record date is prior to the date such Shares are delivered.

  
 Governing Law. The validity, construction and effect of
the Plan and any rules and regulations relating to the Plan and any Award Agreement shall be determined in accordance with the laws of the State of Delaware, without giving effect to the conflict of laws provisions thereof. 
  
 Severability. If any provision of the Plan or any Award is or becomes
or is deemed to be invalid, illegal or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to
conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be construed or deemed stricken as to such
jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect. 
  
 Other Laws. The Committee may refuse to issue or transfer any Shares or other consideration under an Award if, acting in its sole and plenary
discretion, it determines that the issuance or transfer of such Shares or such other consideration might violate any applicable law or regulation or entitle the Company to recover the same under Section 16(b) of the Exchange Act, and any payment
tendered to the Company by a Participant, other holder or beneficiary in connection with the exercise of such Award shall be promptly refunded to the relevant Participant, holder or beneficiary. Without limiting the generality of the foregoing, no
Award granted hereunder shall be construed as an offer to sell securities of the Company, and no such offer shall be outstanding, unless and until the Committee in its sole and plenary discretion has determined that any such offer, if made, would be
in compliance with all applicable requirements of the U.S. Federal and any other applicable securities laws. 
  
 No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company or any Affiliate, on one hand, and a Participant or any other Person, on the other. To the extent that any Person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such
right shall be no greater than the right of any unsecured general creditor of the Company or any Affiliate. 
  

 20 

 No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or
any Award, and the Committee shall determine whether cash, other securities or other property shall be paid or transferred in lieu of any fractional Shares or whether such fractional Shares or any rights thereto shall be canceled, terminated or
otherwise eliminated. 
  
 Requirement of Consent and
Notification of Election Under Section 83(b) of the Code or Similar Provision. No election under Section 83(b) of the Code (to include in gross income in the year of transfer the amounts specified in Section 83(b) of the Code) or under a similar
provision of law may be made unless expressly permitted by the terms of the applicable Award Agreement or by action of the Committee in writing prior to the making of such election. If an Award recipient, in connection with the acquisition of Shares
under the Plan or otherwise, is expressly permitted under the terms of the applicable Award Agreement or by such Committee action to make such an election and the Participant makes the election, the Participant shall notify the Committee of such
election within ten days of filing notice of the election with the IRS or other governmental authority, in addition to any filing and notification required pursuant to regulations issued under Section 83(b) of the Code or other applicable provision.

  
 Requirement of Notification Upon Disqualifying Disposition
Under Section 421(b) of the Code. If any Participant shall make any disposition of Shares delivered pursuant to the exercise of an Incentive Stock Option under the circumstances described in Section 421(b) of the Code (relating to certain
disqualifying dispositions) or any successor provision of the Code, such Participant shall notify the Company of such disposition within ten days of such disposition. 
  
 Headings. Headings are given to the Sections and subsections of the Plan solely as a convenience to facilitate
reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof. 
  
 Term of the Plan. a)Effective Date. The Plan shall be effective as of the date of its adoption by the Board; provided,
however, that no Incentive Stock Options may be granted under the Plan unless it is approved by the Company’s stockholders within twelve (12) months before or after the date the Plan is adopted. 
  
 Expiration Date. No Award shall be granted under the Plan after the
tenth anniversary of the date the Plan is approved under Section 10(a). Unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award granted hereunder may, and the authority of the Board or the Committee to amend,
alter, adjust, suspend, discontinue or terminate any such Award or to waive any conditions or rights under any such Award shall, nevertheless continue thereafter. 
  

 21Formation Agreement, dated October 27, 2004

 EXECUTION COPY 
  
 EXHIBIT 10.2 
  
 FORMATION AGREEMENT 
  
 Among 
  
 DREAMWORKS ANIMATION SKG, INC., 
  
 DREAMWORKS L.L.C., 
  
 DWA ESCROW LLLP 
  
 and 
  
 THE STOCKHOLDERS AND OTHER PERSONS PARTY HERETO 
  
 Dated As Of October 27, 2004 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	
	ARTICLE I
	
	Definitions
			
	Section 1.01.	 	Certain Defined Terms	  	1
	Section 1.02.	 	Other Definitional Provisions	  	6
	
	ARTICLE II
	
	Distribution and Contribution; Holdco Transactions
			
	Section 2.01.	 	 Contributions and Redemptions of Preferred Interests; Distribution of DWA LLC Interests; Execution of Amended LLC Agreement
	  	7
	Section 2.02.	 	 Contribution of the DWA LLC Interests to the Company; Issuance of Common Stock by the Company
	  	7
	Section 2.03.	 	 Residual DW Distribution
	  	7
	Section 2.04.	 	 Formation of Holdco; Contribution of Common Stock to Holdco
	  	8
	Section 2.05.	 	 IPO
	  	8
	Section 2.06.	 	 Pledge Arrangements
	  	8
	
	ARTICLE III
	
	Follow-on Offering
			
	Section 3.01.	 	Initial Follow-on Offering	  	10
	Section 3.02.	 	Pricing Period	  	10
	Section 3.03.	 	Subsequent Follow-on Offering	  	11
	Section 3.04.	 	Registration Rights	  	11
	Section 3.05.	 	Size of Follow-on Offering	  	12
	Section 3.06.	 	Anti-Manipulation	  	12
		
	ARTICLE IV	  	14
	
	Universal Triggered Offering
			
	Section 4.01.	 	Universal Triggered Offering	  	14
	
	ARTICLE V
	
	Additional Agreements; Further Assurances
			
	Section 5.01.	 	Certain Holdco Expenses	  	15

  

 i 

					
	 Section 5.02.
	 	 Further Assurances
	  	15
	
	ARTICLE VI
	
	Representations and Warranties; Indemnification
			
	 Section 6.01.
	 	 Representations and Warranties of Each Party
	  	16
	 Section 6.02.
	 	 Tax Representation
	  	17
	 Section 6.03.
	 	 Representation and Warranty of the Company
	  	17
	 Section 6.04.
	 	 Survival
	  	17
	 Section 6.05.
	 	 Indemnification
	  	17
	
	ARTICLE VII
	
	General Provisions
			
	 Section 7.01.
	 	 Notices
	  	19
	 Section 7.02.
	 	 Counterparts
	  	20
	 Section 7.03.
	 	 Entire Agreement; No Third Party Beneficiaries
	  	20
	 Section 7.04.
	 	 Governing Law
	  	20
	 Section 7.05.
	 	 Severability
	  	20
	 Section 7.06.
	 	 Assignment; Amendments
	  	21
	 Section 7.07.
	 	 Enforcement
	  	21
	 Section 7.08.
	 	 Titles and Subtitles
	  	21
	 Section 7.09.
	 	 Submission to Jurisdiction; Waivers
	  	21

  

 ii 

 FORMATION AGREEMENT, dated as of October 27, 2004, among DREAMWORKS ANIMATION SKG, INC.,
a Delaware corporation (the “Company”), DREAMWORKS L.L.C., a Delaware limited liability company (“DW”), DWA ESCROW LLLP, a Delaware limited liability limited partnership (“Holdco”), and the
stockholders and other persons party hereto. 
  
 WHEREAS, DW, the
Company and DreamWorks Animation L.L.C., a Delaware limited liability company (“DWA LLC”), have entered into a Separation Agreement dated as of the date hereof, providing for the separation of the animation business from DW;

  
 WHEREAS, on the Separation Date (as defined below) immediately
prior to effectiveness of the Underwriting Agreement (as defined below), DW made a distribution-in-kind to certain of its members (in accordance with Article VIII of the Sixth Amended and Restated Limited Liability Company Agreement of DW) of its
interest in DWA LLC; 
  
 WHEREAS, the distributed DWA LLC
interests will be contributed to the Company in exchange for Common Stock (as defined below); 
  
 WHEREAS, each Contributing Member (as defined below) desires to form Holdco and to contribute any shares of Common Stock received from the Company, other than as set forth in Section 2.04(b), to Holdco; 
  
 WHEREAS, the Contributing Members desire to provide for the sale, in a
follow-on secondary offering, of all or a portion of the shares of Common Stock held directly by the Contributing Members and the shares of Common Stock contributed to Holdco by the Contributing Members; and 
  
 WHEREAS, the Company, Holdco and certain other parties hereto have entered
into a Registration Rights Agreement, dated as of the date hereof (the “Registration Rights Agreement”), that, among other things, provides for certain procedures with respect to the Follow-on Offering and the Universal Triggered
Offering (each as defined below); 
  
 NOW, THEREFORE, in
consideration of the foregoing and the respective covenants and agreements set forth herein, and intending to be legally bound hereby, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 Definitions 
  
 Section 1.01. Certain Defined Terms. As used in this Agreement: 
  
 “Agreement” means this Formation Agreement, as it may be amended, supplemented, restated or modified from
time to time. 

 “Amended LLC Agreement” means the Seventh Amended and Restated Limited Liability Company
Agreement of DW, dated as of October 27, 2004, as it may be amended, supplemented, restated or modified from time to time. 
  
 “Asserted Liability” has the meaning assigned to such term in Section 6.05(d). 
  
 “Business Day” means any day that is not a Saturday, a
Sunday or other day on which banks are required or authorized by law to be closed in The City of New York. 
  
 “Charter” means the Restated Certificate of Incorporation of the Company, as amended or restated from time to time. 
  
 “Claiming Member” has the meaning assigned to such term in
Section 2.06(b). 
  
 “Claims” has the meaning
assigned to such term in Section 6.05(a). 
  
 “Claims
Notice” has the meaning assigned to such term in Section 6.05(d). 
  
 “Class A Stock” means the Company’s Class A Common Stock, par value $0.01 per share. 
  
 “Class B Stock” means the Company’s Class B Common Stock, par value $0.01 per share. 
  
 “Class C Stock” means the Company’s Class C Common
Stock, par value $0.01 per share. 
  
 “Class B Stockholder
Agreement” means the Stockholder Agreement, dated as of October 27, 2004, among Holdco, M&J K, M&J K B, The JK Annuity Trust, The MK Annuity Trust, Katzenberg 1994 Irrevocable Trust, DG-DW, Jeffrey Katzenberg and David Geffen, as in
effect on the date hereof. 
  
 “Class T/T
Interests” means Class T/T limited liability company interests in DW. 
  
 “Class U Interests” means Class U limited liability company interests in DW. 
  
 “Common Stock” means the Class A Stock, Class B Stock and Class C Stock. 
  
 “Company” has the meaning assigned to such term in the preamble hereto. 
  
 “Contribution” has the meaning assigned to such term in
Section 2.02. 
  
 “Contributing Members” means
M&J K, M&J K B, DG-DW, DW Lips, DWI II, Lee Entertainment, L.L.C. and Universal. 
  
 “Contributor” has the meaning assigned to such term in Section 2.06(b). 
  

 2 

 “Control” (including the terms “Controlled By” and “Under
Common Control With”) has the meaning assigned to such term in the Charter as in effect at consummation of the IPO. 
  
 “DG-DW” means DG-DW, L.P., a Delaware limited partnership. 
  
 “DW” has the meaning assigned to such term in the preamble hereto. 
  
 “DW Distribution” has the meaning assigned to such term in
the Separation Agreement. 
  
 “DWA LLC” has the
meaning assigned to such term in the recitals hereto. 
  
 “DWA LLC Interest” means a limited liability company interest in DWA LLC. 
  
 “DWI” means DW Investment Inc., a Washington corporation. 
  
 “DWI II” means DW Investment II, Inc., a Washington corporation. 
  
 “Exchange Act” means the U.S. Securities Exchange Act of
1934, as amended, together with the rules and regulations promulgated thereunder. 
  
 “Final Allocation” has the meaning assigned to such term in the Holdco Partnership Agreement as in effect on the Separation Date. 
  
 “Follow-on Offering” means either the Initial Follow-on Offering or the Subsequent Follow-on Offering, as
applicable. 
  
 “Group” has the meaning assigned
to such term in Section 13(d)(3) of the Exchange Act. 
  
 “Holdco” has the meaning assigned to such term in the preamble hereto. 
  
 “Holdco Contribution” has the meaning assigned to such term in Section 2.04. 
  
 “Holdco Obligations” has the meaning assigned to such term
in Section 5.01(b). 
  
 “Holdco Partnership
Agreement” means the Limited Liability Limited Partnership Agreement of Holdco, dated as of October 27, 2004, among the Contributing Members, as in effect on the Separation Date. 
  
 “Indemnitee” has the meaning assigned to such term in Section 6.05(d). 
  
 “Indemnitor” has the meaning assigned to such term in
Section 6.05(d). 
  
 “Initial Follow-on Offering”
has the meaning assigned to such term in Section 3.01(a). 
  
 “Initial Period” has the meaning assigned to such term in Section 3.01(a). 
  

 3 

 “IPO” means the initial public offering by the Company and the selling stockholders
identified in the IPO Registration Statement of shares of Class A Stock pursuant to the IPO Registration Statement. 
  
 “IPO Price” means the gross public offering price per share (calculated before deduction of any underwriting discounts or commissions) in
the IPO. 
  
 “IPO Registration Statement” means
the registration statement on Form S-1 (File No. 333-117528) filed under the Securities Act, pursuant to which the Class A Stock to be issued in the IPO will be registered, together with all amendments thereto. 
  
 “IPO Sale Shares” means, with respect to any Contributing
Member, the number of shares of Class A Stock to be sold in the IPO for the account of such Contributing Member pursuant to the IPO Registration Statement in accordance with Section 2.05. 
  
 “JK/DG Trigger Notice” has the meaning assigned to such term in Section 3.01(a). 
  
 “JK/DG Triggered Follow-on Offering” means an Initial
Follow-on Offering initiated by M&J K B and DG-DW, acting together, pursuant to Section 3.01(a) or converted to such pursuant to Section 3.01(b). 
  
 “Liens” has the meaning assigned to such term in Section 6.01. 
  
 “Losses” has the meaning assigned to such term in Section 6.05(a). 
  
 “M&J K” means M&J K Dream Limited Partnership, a
Delaware limited partnership. 
  
 “M&J K B”
means M&J K B Limited Partnership, a Delaware limited partnership. 
  
 “Member” means each member of DW listed on Schedule 2.02. 
  
 “Minimum Registrable Amount” has the meaning assigned to such term in Section 3.05. 
  
 “Parent” means each of Steven Spielberg, Jeffrey Katzenberg, David Geffen, Paul Allen, NBC Universal, Inc. and CJ Corp. 
  
 “Participating Partner” has the meaning assigned to such
term in the Holdco Partnership Agreement. 
  
 “Person” has the meaning assigned to such term in the Charter (as modified in Section 2(f) of Article IV thereof) as in effect at consummation of the IPO. 
  
 “Pledged Common Stock” has the meaning assigned to such term in the Vulcan Stockholder Agreement as in
effect at consummation of the IPO. 
  

 4 

 “Preferred Contributions” has the meaning assigned to such term in Section 2.01(a).

  
 “Preferred Redemptions” has the meaning
assigned to such term in Section 2.01(a). 
  
 “Pricing
Period” means the 20 consecutive trading days on The New York Stock Exchange beginning on the date specified in the Pricing Period Notice. 
  
 “Pricing Period Notice” has the meaning assigned to such term in Section 3.02(a). 
  
 “Pricing Period Price” has the meaning assigned to such term
in Section 3.02(b). 
  
 “Proceeding” has the
meaning assigned to such term in Section 7.09. 
  
 “Ratable Amount” has the meaning assigned to such term in Section 2.06(b). 
  
 “Refinancing Credit Facility” has the meaning assigned to such term in Section 2.06(a). 
  
 “Registration Rights Agreement” has the meaning assigned to
such term in the recitals hereto. 
  
 “Residual DW
Distribution” has the meaning assigned to such term in Section 2.03(a). 
  
 “Revolving Credit Facility” means the revolving credit facility, dated as of October 27, 2004, among DW and the lenders party thereto (or any refinancing thereof that does not extend the term
thereof). 
  
 “Satisfaction Event” has the
meaning assigned to such term in the Holdco Partnership Agreement. For the avoidance of doubt, all references in this Agreement to a Satisfaction Event resulting from a Follow-on Offering or a Universal Triggered Offering shall require that the
Satisfaction Event result from such offering without requiring the exercise of any overallotment option in such offering. 
  
 “Securities Act” means the Securities Act of 1933, as amended, together with the rules and regulations promulgated thereunder.

  
 “Separation Agreement” means the Separation
Agreement, dated as of October 27, 2004, among DW, DWA LLC and the Company, as in effect on the Separation Date. 
  
 “Separation Date” has the meaning assigned to such term in the Separation Agreement. 
  
 “Subsequent Follow-on Offering” has the meaning assigned to
such term in Section 3.03(a). 
  
 “Subsequent
Period” has the meaning assigned to such term in Section 3.03(a). 
  

 5 

 “Subsequent Vulcan Trigger Notice” has the meaning assigned to such term in Section
3.03(a). 
  
 “Thomson” means Thomson Inc.

  
 “Underwriting Agreement” has the meaning
assigned to such term in the Separation Agreement. 
  
 “Universal” means Vivendi Universal Entertainment LLLP. 
  
 “Universal Period” has the meaning assigned to such term in Section 4.01(a). 
  
 “Universal Trigger Notice” has the meaning assigned to such term in Section 4.01(a). 
  
 “Universal Triggered Offering” has the meaning assigned to
such term in Section 4.01(a). 
  
 “Volume Weighted Average
Price” over any period means, with respect to the Class A Stock, the volume weighted average price per share for the entire applicable period on the principal national securities market or exchange on which the Class A Stock is listed or
quoted. 
  
 “Vulcan Stockholder Agreement” means
the Stockholder Agreement, dated as of October 27, 2004, among the Company, Holdco, M&J K, M&J K B, The JK Annuity Trust, The MK Annuity Trust, Katzenberg 1994 Irrevocable Trust, DG-DW, DWI II, Jeffrey Katzenberg, David Geffen and Paul
Allen, as it may be amended, supplemented, restated or modified from time to time. 
  
 “Vulcan Trigger Notice” has the meaning assigned to such term in Section 3.01(a). 
  
 “Vulcan Triggered Follow-on Offering” means an Initial Follow-on Offering initiated by DWI II pursuant to Section 3.01(a) unless
converted into a JK/DG Triggered Follow-on Offering pursuant to Section 3.01(b). 
  
 Section 1.02. Other Definitional Provisions. (a) The words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement, and Article and Section references are to this Agreement unless otherwise specified. The words “include”, “includes” and “including” shall be deemed to
be followed by the phrase “without limitation”. 
  
 (b)
The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. 
  

 6 

 ARTICLE II 
  
 Distribution and Contribution; Holdco Transactions 
  
 Section 2.01. Contributions and Redemptions of Preferred Interests; Distribution of DWA LLC Interests; Execution of Amended LLC Agreement. (a) On
the Separation Date, after consummation of the transactions contemplated in Section 2.01 of the Separation Agreement, (x) Thomson shall contribute 33 1/3% of the Class T/T Interests to the Company in exchange for the number of shares of Common Stock set forth on Schedule 2.02 and (y) Universal shall contribute 50% of the Class U Interests to the
Company in exchange for the number of shares of Common Stock set forth on Schedule 2.02 (the “Preferred Contributions”). For the avoidance of doubt, the number of shares of Common Stock received in exchange for the Preferred
Contributions shall be equal to (i) in the case of Universal, $75 million divided by the IPO Price and (b) in the case of Thomson, $50 million divided by the IPO Price. Immediately after consummation of the Preferred Contributions, DW shall redeem
such Class T/T Interests and such Class U Interests from the Company in exchange for (i) all of DW’s 100% interest in the capital stock of DreamWorks Inc. and (ii) the number of DWA LLC Interests set forth in Schedule 2.01(a) (the
“Preferred Redemptions”). DW acknowledges that it will treat the Preferred Redemptions as a liquidating distribution with respect to the Class T/T Interests and Class U Interests so redeemed and shall report the Preferred
Redemptions as such under Section 732(b) of the Internal Revenue Code. 
  
 (b) On the Separation Date, immediately after consummation of the DW Distribution, each Member (other than the Contributing Members, Universal and Thomson) shall execute and deliver a pledge agreement in favor of the
lenders under the Revolving Credit Facility, which pledge agreements shall provide for the pledge of the applicable number of shares of Common Stock set forth on Schedule 2.01(b). 
  
 Section 2.02. Contribution of the DWA LLC Interests to the Company; Issuance of Common Stock by the Company. On the
Separation Date, after consummation of the DW Distribution and following effectiveness of the Underwriting Agreement, each Member (or DWI II, in the case of DW Investment Inc.), other than Universal and Thomson, shall contribute all its right, title
and interest in and to the DWA LLC Interests to the Company in exchange for the number of shares of Class A Stock, Class B Stock or Class C Stock, as applicable, set forth on Schedule 2.02 (the “Contribution”). The Company hereby
acknowledges that it intends to continue the existence of DWA LLC as a partnership for Federal income tax purposes. 
  
 Section 2.03. Residual DW Distribution. (a) On the Separation Date, immediately after consummation of the PDI Merger (as defined in the Separation
Agreement), DW shall distribute (in accordance with Article VIII of the Sixth Amended and Restated Limited Liability Company Agreement of DW) all its right, title and interest in and to all shares of Class A Stock then held by DW (after giving
effect to the LLC Employee Distribution (as defined in the Separation Agreement)) to the Members listed on Schedule 2.03(a) hereto, in the amounts set forth on Schedule 2.03(a) (the “Residual DW Distribution”). 
  
 (b) On the Separation Date, immediately after consummation of the Residual DW
Distribution, the Members shall execute and deliver the Amended LLC Agreement. 
  

 7 

 Section 2.04. Formation of Holdco; Contribution of Common Stock to Holdco. (a) Immediately prior
to the Holdco Contribution (as defined below), each Contributing Member shall execute and deliver the Holdco Partnership Agreement, and the Contributing Members shall form Holdco. 
  
 (b) On the Separation Date, immediately after the formation of Holdco, (i) Holdco shall execute and deliver a pledge
agreement in favor of the lenders under the Revolving Credit Facility, which pledge agreement shall be in substitution for the pledge of the shares of Common Stock that would have been pledged by the Contributing Members (other than Universal)
pursuant to Section 2.01(b) if such Contributing Members were subject to Section 2.01(b) and (ii) each Contributing Member shall contribute all its right, title and interest in and to the Common Stock received by such Contributing Member in any of
the Contribution, the Preferred Contributions or the Residual DW Distribution, as applicable (other than (x) in the case of each Contributing Member, the respective number of shares of Class A Stock or Class B Stock set forth on Schedule 2.04(b)(x)
and (y) in the case of DWI II, the one share of Class C Stock) to Holdco, and in exchange therefor shall receive the interests in Holdco as set forth in the Holdco Partnership Agreement (the “Holdco Contribution”). 
  
 (c) Each Contributing Member shall, to the extent it has not already done so,
appoint an agent for service of process in the State of Delaware. 
  
 (d) Each Continuing Partner (as defined in the Holdco Partnership Agreement) agrees (for itself and its permitted transferees) that (i) it shall remain a partner in Holdco for at least six months after the Vulcan GP Date (as defined in the
Holdco Partnership Agreement), (ii) such Continuing Partner shall not amend or modify the Holdco Partnership Agreement or take or cause to be taken any action in each case which would effect the dissolution of Holdco prior to the end of such six
month period (it being understood that distributions to such Continuing Partners of shares of Common Stock not constituting Continuing Partner Minimum Ownership Shares (as defined in the Holdco Partnership Agreement) shall not constitute such
actions) and (iii) such Continuing Partner shall not amend or modify the definition of “Final Allocation” in the Holdco Partnership Agreement. 
  
 (e) Holdco agrees to convert shares of Class B Stock held by it into shares of Class A Stock at the time required by the terms of the Holdco Partnership
Agreement. 
  
 Section 2.05. IPO. The Members shall be
entitled to participate in the secondary sale of shares of Class A Stock in the IPO (and the overallotment option relating to the IPO, if exercised) pro rata in proportion to the percentages set forth on Schedule 2.05. 
  
 Section 2.06. Pledge Arrangements. (a) Each Member (other than (i)
Universal, (ii) Thomson and (iii) each Contributing Member (but only until such Contributing Member has received a distribution of Pledged Common Stock from Holdco)) and Holdco (for so long as it holds Pledged Common Stock) shall keep in effect a
pledge agreement (substantially in the form of the Guarantee and Pledge Agreement attached to the Revolving Credit Facility or such other form of agreement as may be acceptable to the Administrative Agent under the Revolving Credit Facility or any
Refinancing Credit Facility) pursuant to which such Holder grants a first-priority pledge of its Pledged Common Stock for the benefit of the Administrative Agent (and the other 

  

 8 

 
Lenders (as defined in the Revolving Credit Facility or any Refinancing Credit Facility)) under the Revolving Credit Facility (or any Refinancing Credit
Facility) so long as the Obligations (as defined in the Revolving Credit Facility or any Refinancing Credit Facility) thereunder remain outstanding (including in circumstances where the stated maturity date of the Revolving Credit Facility or any
Refinancing Credit Facility has occurred). Notwithstanding the foregoing, if DW and the Lenders agree to extend the stated maturity date of the Revolving Credit Facility or any Refinancing Credit Facility to a date that is later than November 1,
2009, the requirement to keep a pledge agreement in effect as provided above shall, as to Holdco and each Member subject to such requirement, automatically lapse at the close of business on November 1, 2009, unless (i) Holdco or such Member, as
applicable, has given its prior written consent to such extension of such stated maturity date, (ii) an event of default pursuant to Section 8.1(f) of the Revolving Credit Facility shall have occurred and shall be continuing with respect to DW or
(iii) any other event of default under the Revolving Credit Facility or any Refinancing Credit Facility shall have occurred and be continuing and either (A) the Administrative Agent or the Lenders are exercising remedies with respect thereto in good
faith or (B) the Lenders have agreed to forbear action with respect thereto. As used in this Section 2.06(a), (i) the term “Refinancing Credit Facility” means any credit facility that refinances or otherwise replaces the Revolving
Credit Facility (or any Refinancing Credit Facility) so long as the stated maturity date of such credit facility is, at the execution of the documentation relating to such credit facility, not later than November 1, 2009 and (ii) the term
“Revolving Credit Facility” has the meaning assigned to such term in Section 1.01, without giving effect to the parenthetical at the end of such definition. 
  
 (b) Holdco and each Member agree that in the event a payment shall be made by Holdco or any Member (Holdco or such Member
being the “Claiming Member”) under the Guarantee and Pledge Agreement to which such Claiming Member is a party, or the Collateral (as defined therein) shall be foreclosed upon or otherwise applied against any obligations of such
Claiming Member thereunder, to satisfy a claim of the Administrative Agent on behalf of the Lenders and such payment is greater than the amount equal to (a) the aggregate amount of all payments made to the Administrative Agent by Holdco and all
Members plus the value of the Collateral under each Guarantee and Pledge Agreement foreclosed upon or otherwise so applied in satisfaction of such claim multiplied by (b) the Claiming Member’s Participation Percentage (as defined in the Amended
LLC Agreement) as of the date hereof or, in the case of Holdco, the aggregate Participation Percentages of the Contributing Members (such product being the “Ratable Amount”), then Holdco (if Holdco is not the Claiming Member) and
each other Member that is a party to a Guarantee and Pledge Agreement (each a “Contributor”) shall contribute to the Claiming Member an amount in cash or Pledged Common Stock that is equal to such Contributor’s pro rata share
(calculated based on the relative Participation Percentages of the Contributors as of the date hereof, with Holdco’s deemed Participation Percentage calculated as described above) of the difference between (x) the amount actually paid by the
Claiming Member or otherwise so applied by the Administrative Agent to satisfy such claim of the Administrative Agent and (y) the Claiming Member’s Ratable Amount. For the avoidance of doubt, this Section 2.06(b) shall have no application with
respect to either Universal or Thomson. 
  

 9 

 ARTICLE III 
  
 Follow-on Offering 
  
 Section 3.01. Initial Follow-on Offering. (a) At any time during the period beginning on the date that is six months after consummation of the IPO
and prior to May 31, 2006 (the “Initial Period”), either of (i) M&J K B and DG-DW, acting together, or (ii) DWI II, shall have the right to cause Holdco to effect one Follow-on Offering (the “Initial Follow-on
Offering”), in either case by causing Holdco to exercise Holdco’s demand registration rights pursuant to Section 1.02 of the Registration Rights Agreement by delivering written notice (the “JK/DG Trigger Notice” or the
“Vulcan Trigger Notice”, as applicable) thereof (which notice shall also specify the number of shares of Class A Stock proposed to be sold in such Initial Follow-on Offering (assuming the maximum number of Participating Partners),
which number shall comply with the terms of Section 3.05) to Holdco during the Initial Period (with a copy of such notice concurrently delivered to each other Contributing Member). Upon receipt by Holdco of either a JK/DG Trigger Notice or a Vulcan
Trigger Notice, the general partners of Holdco in their capacity as such shall, within three Business Days of the date of such receipt, deliver a Demand Request (as defined in the Registration Rights Agreement) to the Company (with a copy of such
notice concurrently delivered to each Contributing Member notifying each Contributing Member of its right to participate in such offering) requesting that the Company register such shares of Class A Stock as soon as practicable pursuant to Section
1.02 of the Registration Rights Agreement. 
  
 (b) In the event
that the Initial Follow-on Offering is a Vulcan Triggered Follow-on Offering, M&J K B and DG-DW shall have the right at any time at or prior to the pricing of such Initial Follow-on Offering to convert such Initial Follow-on Offering from a
Vulcan Triggered Follow-on Offering to a JK/DG Triggered Follow-on Offering by delivering written notice of such conversion to Holdco and DWI II at or prior to such pricing. Upon receipt by Holdco of such notice, such Initial Follow-on Offering
shall be treated solely as a JK/DG Triggered Follow-on Offering for purposes of Article VII of the Holdco Partnership Agreement. 
  
 Section 3.02. Pricing Period. (a) If a Vulcan Triggered Follow-on Offering is consummated, M&J K B and DG-DW, acting together, shall, on the
date selected by them during the period beginning on the date of consummation of the Vulcan Triggered Follow-on Offering (excluding any exercise of an overallotment option granted to the underwriters of such offering, if any) and ending on May 31,
2006, deliver an irrevocable written notice (the “Pricing Period Notice”) to the other Contributing Members specifying the date of commencement of the Pricing Period. The Pricing Period shall in no event end later than May 31, 2006
unless there are fewer than 20 trading days between the date of such consummation of such Vulcan Triggered Follow-on Offering (or any overallotment option exercise in respect of such offering, if later) and May 31, 2006, in which case the Pricing
Period shall end on the twentieth trading day after the date of such consummation of such offering or overallotment option, as the case may be. The Pricing Period Notice shall be delivered pursuant to this Section 3.02(a) at least three trading days
prior to the first day of the Pricing Period. Notwithstanding anything herein to the contrary, in no event shall the Pricing Period end earlier than the date of consummation of the overallotment option, if any, relating to such Vulcan Triggered
Follow-on Offering. 
  

 10 

 (b) The “Pricing Period Price” shall be the Volume Weighted Average Price of the Class A
Stock over the Pricing Period. 
  
 Section 3.03. Subsequent
Follow-on Offering. (a) If an Initial Follow-on Offering shall not have been consummated on or prior to May 31, 2006, then at any time during the period from and including June 1, 2006 to December 1, 2007 (June 1, 2008, in the event that a
Universal Triggered Offering shall have been consummated) (the “Subsequent Period”), DWI II shall have the sole right to cause Holdco to effect a Follow-on Offering (the “Subsequent Follow-on Offering”) by causing
Holdco to exercise Holdco’s demand registration rights pursuant to Section 1.02 of the Registration Rights Agreement by delivering written notice (the “Subsequent Vulcan Trigger Notice”) thereof (which notice shall also specify
the number of shares of Class A Stock proposed to be sold in the Subsequent Follow-on Offering (assuming the maximum number of Participating Partners), which number shall comply with the terms of Section 3.05) to Holdco during the Subsequent Period
(with a copy of such notice concurrently delivered to each other Contributing Member). Upon receipt by Holdco of the Subsequent Vulcan Trigger Notice, the general partners of Holdco in their capacity as such shall, within three Business Days of the
date of such receipt, deliver a Demand Request to the Company (with a copy of such notice concurrently delivered to each Contributing Member notifying each Contributing Member of its right to participate in such offering) requesting that the Company
register such shares of Class A Stock as soon as practicable pursuant to Section 1.02 of the Registration Rights Agreement. 
  
 (b) If an Initial Follow-on Offering shall not have been consummated on or prior to May 31, 2006 and DWI II shall not have delivered the Subsequent Vulcan
Trigger Notice prior to December 1, 2007 (June 1, 2008, in the event that a Universal Triggered Offering shall have been consummated) then, on or after December 1, 2007, the general partners of Holdco, in such capacity, shall have the right, no
later than December 31, 2007 (June 30, 2008, in the event that a Universal Triggered Offering shall have been consummated) to cause Holdco to initiate the Subsequent Follow-on Offering by delivering a Demand Request to the Company (with a copy of
such notice concurrently delivered to each Contributing Member notifying each Contributing Member of the number of shares of Class A Stock proposed to be sold in such offering, which number shall comply with the terms of Section 3.05, and notifying
each Contributing Member of its right to participate in such offering) requesting that the Company register such shares of Class A Stock as soon as practicable pursuant to Section 1.02 of the Registration Rights Agreement. 
  
 (c) Notwithstanding anything to the contrary in this Agreement, neither DWI
II nor the general partners of Holdco shall deliver a notice triggering a Subsequent Follow-on Offering pursuant to this Section 3.03 if a Universal Trigger Notice shall have been delivered pursuant to Section 4.01(a) (and shall not have been
revoked or converted pursuant to Section 4.01(b)) and such Universal Triggered Offering shall not have been consummated; provided, that if any such notice shall remain outstanding as provided in the last sentence of Section 4.01(a) or Section
4.01(b), it shall continue to be subject to conversion pursuant to Section 4.01(b). 
  
 Section 3.04. Registration Rights. (a) Holdco shall not exercise its demand or piggyback registration rights pursuant to the Registration Rights Agreement for any purpose other than (i) effecting the Follow-on
Offering that will result in a Satisfaction Event with respect to each Participating Partner or (ii) effecting a Universal Triggered Offering that will result in a Satisfaction Event with respect to Universal. 
  

 11 

 (b) If a Follow-on Offering is a JK/DG Triggered Follow-on Offering, then M&J K B and DG-DW, acting
together, shall have the sole right to cause Holdco to exercise its right to revoke or delay its requested registration pursuant to the Registration Rights Agreement. 
  
 (c) If the Follow-on Offering is either a Vulcan Triggered Follow-on Offering or the Subsequent Follow-on Offering triggered
by DWI II, then DWI II shall have the sole right to cause Holdco to exercise its right to revoke or delay its requested registration pursuant to the Registration Rights Agreement. 
  
 (d) If a Follow-on Offering is the Subsequent Follow-on Offering triggered as set forth in Section 3.03(b) or a Subsequent
Follow-on Offering that has not been consummated on or prior to December 1, 2007 (June 1, 2008, in the event that a Universal Triggered Offering shall have been consummated), then DWI II, M&J K B and DG-DW, acting together, shall have the sole
right to cause Holdco to exercise its right to revoke or delay its requested registration pursuant to the Registration Rights Agreement. 
  
 (e) With respect to a Universal Triggered Offering, Universal shall have the sole right to cause Holdco to exercise its right to revoke or delay its
requested registration pursuant to the Registration Rights Agreement. 
  
 Section 3.05. Size of Follow-on Offering. The minimum number of shares to be registered on behalf of the Participating Partners in a Follow-on Offering shall be such number of shares required to cause a Satisfaction Event with
respect to each Participating Partner upon consummation of such offering (such minimum number of shares being the “Minimum Registrable Amount”). The Company shall, to the extent practicable, cause at least the Minimum Registrable
Amount of shares of Common Stock to be sold in an Initial Follow-on Offering in accordance with the terms of the Registration Rights Agreement. The Company shall also use its commercially reasonable best efforts to increase the size of a JK/DG
Triggered Follow-on Offering (to the extent requested by DWI II) beyond the Minimum Registrable Amount (subject to the restrictions set forth in Section 7.02(b) of the Holdco Partnership Agreement); provided, that a majority of the joint lead
bookrunning underwriters for such Follow-on Offering agree that such increase will not have a significant negative effect on pricing of such Follow-on Offering, and so advise the Company and DWI II. The Company shall not reduce the size of a
Follow-on Offering below the Minimum Registrable Amount and shall comply with all of its obligations under the Registration Rights Agreement with respect to a Follow-on Offering and a Universal Triggered Offering, as applicable. If a Follow-on
Offering cannot be consummated because of its failure to satisfy the requirements of this Section 3.05 as a result of market conditions or other Company-related issues, then the party or parties that triggered such Follow-on Offering shall have all
of their rights under this Article III reinstated, as if the notice triggering such offering had never been delivered. 
  
 Section 3.06. Anti-Manipulation. (a) During the period from the date of this Agreement until the Final Allocation, except pursuant to a Follow-on
Offering or a Universal Triggered Offering in conformity with this Agreement, the Registration Rights Agreement and 

  

 12 

 
the Holdco Partnership Agreement, each Contributing Member agrees that it shall not, and each Parent of a Contributing Member agrees that such Parent shall
not and such Parent shall cause Persons Controlled By such Parent not to, sell or enter into a put transaction or engage in any similar transaction, including any constructive sale or put, or hedging, derivative, short sale or other transaction with
the same or similar effect, or enter into any contract, option or other arrangement in respect thereof, or publicly announce an intention or plan to engage in any of the foregoing, with respect to any Common Stock, any securities convertible into or
exchangeable for Common Stock or any options, warrants or other rights to acquire Common Stock; provided, that, except in the case of Universal, this Section 3.06(a) shall not prohibit any such sale or other transaction between or among
Persons Controlled By such Contributing Members and such Contributing Members or the exercise and consummation of the right of offer pursuant to Section 2.03 of the Class B Stockholder Agreement or the special call right pursuant to Section 2.04 of
the Class B Stockholder Agreement. 
  
 (b) During the period from
the date of this Agreement until the Final Allocation, the Company shall not repurchase, redeem or otherwise acquire, or enter into a call transaction or engage in any similar transaction, including any constructive purchase or call, or hedging,
derivative or other transaction with the same or similar effect, or enter into any contract, option or other arrangement in respect thereof, or publicly announce an intention to take any of the foregoing actions with respect to any Common Stock, any
securities convertible into or exchangeable for Common Stock or any options, warrants or other rights to acquire Common Stock; provided, that this Section 3.06(b) shall not prohibit any such purchase or acquisition pursuant to an employee or
director stock ownership or other benefit plan of the Company. 
  
 (c) During the period from the date of this Agreement until the Final Allocation, each Contributing Member agrees that it shall not, and each Parent of a Contributing Member agrees that such Parent shall not and such Parent shall cause
Persons Controlled By such Parent not to purchase or otherwise acquire or enter into a call transaction or engage in any similar transaction, including any constructive purchase or call, or hedging, derivative or other transaction with the same or
similar effect, or enter into any contract, option or other arrangement in respect thereof, or publicly announce an intention to take any of the foregoing actions with respect to any Common Stock, any securities convertible into or exchangeable for
Common Stock or any options, warrants or other rights to acquire Common Stock; provided, that this Section 3.06(c) shall not prohibit any such purchase, acquisition or other transaction between or among any Person Controlled By Jeffrey
Katzenberg, David Geffen or Steven Spielberg or any receipt of shares or stock options (or option exercises) pursuant to an employee or director stock ownership or other benefit plan of the Company or the exercise and consummation of the right of
first offer pursuant to Section 2.03 of the Class B Stockholder Agreement or the special call right pursuant to Section 2.04 of the Class B Stockholder Agreement. 
  
 (d) General Electric Company shall not engage in the conduct described in Sections 3.06(a) and 3.06(c) for the purpose of
impacting, or with the intent to impact, the amount or timing of any distribution of shares of Common Stock that any Contributing Member is entitled to receive under Article VII of the Holdco Partnership Agreement. 
  

 13 

 ARTICLE IV 
  
 Universal Triggered Offering 
  
 Section 4.01. Universal Triggered Offering. (a) If a Follow-on Offering shall not have been consummated on or prior to November 30, 2006, then at
any time during the period from and including December 1, 2006 to February 28, 2007 (the “Universal Period”), unless a Subsequent Follow-on Offering shall have theretofore been triggered and not revoked, Universal shall have the
right to cause Holdco to initiate a registered offering (the “Universal Triggered Offering”) by causing Holdco to exercise Holdco’s demand registration rights pursuant to Section 1.02 of the Registration Rights Agreement by
delivering written notice (the “Universal Trigger Notice”) thereof (which notice shall also specify the number of shares of Class A Stock proposed to be sold in the Universal Triggered Offering, which number shall be the estimated
number of shares required to be sold to cause a Satisfaction Event with respect to Universal) to Holdco during the Universal Period (with a copy of such notice concurrently delivered to each other Contributing Member). Upon receipt by Holdco of the
Universal Trigger Notice, the general partners of Holdco in their capacity as such shall, within three Business Days of the date of such receipt, deliver a Demand Notice to the Company requesting that the Company register such shares of Class A
Stock as soon as practicable pursuant to Section 1.02 of the Registration Rights Agreement. In no event shall the Universal Triggered Offering be larger than that necessary to cause a Satisfaction Event with respect to Universal. If a Universal
Triggered Offering cannot be consummated because it would not result in a Satisfaction Event with respect to Universal as a result of market conditions or other Company-related issues, then the Universal Trigger Notice shall be deemed to remain
outstanding. 
  
 (b) DWI II shall have the right at any time on or
prior to the fourth day preceding the date on which the underwriters propose the printing of the “red herring” prospectuses in respect of such Universal Triggered Offering to convert such Universal Triggered Offering from a Universal
Triggered Offering to a Subsequent Follow-on Offering by delivering written notice of such conversion to Holdco and each Contributing Member at or prior to such pricing. Upon receipt by Holdco of such notice, such Universal Triggered Offering shall
be treated solely as a Subsequent Follow-on Offering for all purposes and the number of shares registered in such offering shall comply with the terms of Section 3.05. If, following such conversion, such Subsequent Follow-on Offering shall not be
consummated for any reason, then such offering shall proceed as a Universal Triggered Offering and if it still cannot be consummated because it would not result in a Satisfaction Event with respect to Universal as a result of market conditions or
other Company-related issues, then the Universal Trigger Notice shall be deemed to remain outstanding. 
  
 (c) If a Subsequent Follow-on Offering shall have been triggered on or prior to November 30, 2006 but not consummated, then Universal shall have the right
(exercised as set forth below) to convert such Subsequent Follow-on Offering from a Subsequent Follow-on Offering to a Universal Triggered Offering if such Subsequent Follow-on Offering cannot be consummated in accordance with Section 3.05. At its
election, Universal shall exercise such right by delivering written notice thereof to each of Holdco, M&J K B, DG-DW and DWI II during the Universal Period. 
  

 14 

 ARTICLE V 
  
 Additional Agreements; Further Assurances 
  
 Section 5.01. Certain Holdco Expenses. (a) DW shall pay or reimburse (i) all reasonable out-of-pocket third party expenses incurred by the Tax
Matters Partner (as defined in the Holdco Partnership Agreement) under the Holdco Partnership Agreement while acting in such capacity and (ii) all reasonable out-of-pocket third party expenses incurred by the General Partners (as defined in the
Holdco Partnership Agreement) under the Holdco Partnership Agreement in performing their duties as the General Partners, in each case to the extent arising from events occurring prior to the Final Allocation. In addition, prior to the Final
Allocation, DW shall make available to Holdco and the General Partners any personnel reasonably necessary to assist such Persons in the performance of such duties. Notwithstanding anything to the contrary in this Agreement, none of DW, M&J K,
M&J K B, The JK Annuity Trust, the MK Annuity Trust, Katzenberg 1994 Trust, DG-DW, DW Lips, DWI, DWI II, Jeffrey Katzenberg, David Geffen, Steven Spielberg or Paul Allen, or any of their respective Affiliates, shall be entitled to any other fee
or compensation (other than applicable indemnity payments) from Holdco, DW, any Member or any partner of Holdco for any actions taken on behalf of, or services rendered to, Holdco pursuant to this Agreement or the Holdco Partnership Agreement.

  
 (b) DW hereby fully, absolutely, irrevocably and
unconditionally guarantees, as a primary obligor and not merely as a surety, (i) the due and punctual payment of each payment required to be made by Holdco under Section 10.03 of the Holdco Partnership Agreement, when and as due, and (ii) the due
and punctual performance and observance of, and compliance with, all covenants, agreements, obligations and liabilities of Holdco under Section 10.03 of the Holdco Partnership Agreement, in each case to the extent arising from events occurring prior
to the Final Allocation (all such obligations referred to the in the preceding clauses (i) and (ii) being collectively referred to as the “Holdco Obligations”). DW further agrees that the Holdco Obligations may be extended, amended,
modified or renewed, in whole or in part, in each case to the extent arising from events occurring prior to the Final Allocation, without notice to or further assent from DW and that DW will remain bound by the guarantee set forth in this Section
5.01(b) notwithstanding any extension, amendment, modification or renewal of any Holdco Obligation. 
  
 Section 5.02. Further Assurances. (a) In addition to the actions specifically provided for elsewhere in this Agreement, each of the parties hereto
shall use its reasonable best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things reasonably necessary, proper or advisable under applicable laws, regulations and agreements to consummate and make effective
the transactions contemplated by this Agreement. 
  
 (b) Without
limiting the foregoing, each party hereto shall cooperate with each other party, and without any further consideration, to execute and deliver, or use its reasonable best efforts to cause to be executed and delivered, all instruments, including
instruments of contribution, exchange and transfer and to take all such other actions as such party may reasonably be requested to take by any such other party hereto from time to time, consistent with the terms of this Agreement, in order to
effectuate the provisions and purposes of this Agreement. 
  

 15 

 ARTICLE VI 
  
 Representations and Warranties; Indemnification 
  
 Section 6.01. Representations and Warranties of Each Party. Each of the parties hereto hereby represents and warrants, severally and not jointly,
to each of the other parties hereto as of the date hereof as follows: 
  
 (i) Such party (other than in the case of a natural person) is duly organized or formed, validly existing and in good standing under the laws of its jurisdiction of incorporation or formation, is qualified to do
business in each jurisdiction where such qualification is required (except for such qualifications the absence of which, individually or in the aggregate, would not reasonably be expected to have a material adverse effect on the ability of such
party to perform its obligations under this Agreement and, to the extent a party thereto, the Registration Rights Agreement, the Holdco Partnership Agreement, the Class B Stockholder Agreement, the Vulcan Stockholder Agreement and the Separation
Agreement) and has the requisite power and authority to enter into this Agreement and, to the extent a party thereto, the Registration Rights Agreement, the Holdco Partnership Agreement and the Separation Agreement and to consummate the transactions
contemplated hereby and thereby. 
  
 (ii) To the
extent such party is making a Preferred Contribution pursuant to Section 2.01(a), a Contribution pursuant to Section 2.02 or a Holdco Contribution pursuant to Section 2.04, such party will have good and valid title to the interests or shares, as
applicable, to be contributed, free and clear of all liens, security interests, charges, options, claims, restrictions or encumbrances of any kind, except, (x) for the pledges being entered into in accordance with Section 2.01(b) and (y) in the case
of the Class T/T Interests, for any of the foregoing in respect of accrued but unpaid dividends (collectively, “Liens”), and upon the applicable contribution, good and valid title to such interests or shares will pass to the Company
or Holdco, as applicable, free and clear of any Liens, other than Liens arising from actions of the Company or Holdco, as applicable. 
  
 (iii) The execution and delivery of each of this Agreement and, to the extent a party thereto, the Registration Rights Agreement, the
Holdco Partnership Agreement and the Separation Agreement and the consummation of the transactions contemplated hereby and thereby have, other than in the case of a natural person, been duly authorized by all necessary action on the part of such
party. Each of this Agreement and, to the extent a party thereto, the Registration Rights Agreement, the Holdco Partnership Agreement, the Class B Stockholder Agreement, the Vulcan Stockholder Agreement and the Separation Agreement has been duly
executed and delivered by such party and constitutes a legal, valid and binding obligation of such party, enforceable against such party in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance and other similar laws of general application affecting enforcement of creditors’ rights generally and (ii) the availability of the remedy of specific performance or injunctive or other forms of equitable
relief may be subject to equitable defenses and would be subject to the discretion of the court before which any 

  

 16 

 
proceeding therefor may be brought. The spousal consents being executed by the persons listed on Exhibit A hereto are enforceable against such persons in
accordance with their terms. 
  
 (iv) The
execution, delivery and performance of this Agreement and, to the extent a party thereto, the Registration Rights Agreement, the Holdco Partnership Agreement, the Class B Stockholder Agreement, the Vulcan Stockholder Agreement and the Separation
Agreement and the consummation of the transactions contemplated hereby and thereby and compliance with the terms hereof and thereof shall not conflict with or result in a breach or violation of (i) other than in the case of a natural person, such
party’s articles or certificate of incorporation (or similar constitutive document) or by-laws or (ii) any material contract, agreement or instrument to which such party or any of its subsidiaries is a party or by which any of them are bound,
or license, judgment, order, decree, statute, law, rule or regulation, domestic or foreign, applicable to such party or any of its subsidiaries or their respective properties or assets. 
  
 (v) In the case of each Member, such party is an “accredited investor” within the meaning of Rule
501(a) of Regulation D under the Securities Act. 
  
 Section 6.02.
Tax Representation. Each Person that received DWA LLC Interests in the DW Distribution or the Residual DW Distribution (and DWI II, on behalf of DWI) represents that (i) it will treat the DW Distribution and the Residual DW Distribution as
other than in liquidation of its interest in DW (and, in the case of DWI II, DWI II will cause DWI to treat the DW Distribution and the Residual DW Distribution as other than in liquidation of DWI’s interest in DW) and (ii) its interest in the
DWA LLC Interests immediately following the DW Distribution and the Residual DW Distribution will have a tax basis determined under Section 732(a) of the Internal Revenue Code (and, in the case of DWI II, DWI’s interest in the DWA LLC Interests
immediately following the DW Distribution and the Residual DW Distribution will have a tax basis determined under Section 732(a) of the Internal Revenue Code). 
  

Section 6.03. Representation and Warranty of the Company. The Company hereby represents and warrants to each of the other parties hereto as of
the date hereof that the Common Stock to be issued as consideration for the Contribution and the Preferred Contributions will have been duly authorized and, when issued and delivered in accordance with this Agreement, will be validly issued, fully
paid and nonassessable. 
  
 Section 6.04. Survival. The
representations and warranties in this Article VI shall survive the consummation of the transactions contemplated in this Agreement and shall not terminate. 
  
 Section 6.05. Indemnification. (a) Each party shall indemnify, defend and hold harmless each other party (and each such other party’s
directors, officers, employees, affiliates, successors and assigns) from and against all actions, suits, claims, complaints, demands, litigation or legal, administrative or arbitral proceedings or investigations (collectively,
“Claims”), losses, liabilities, damages, deficiencies, judgments, assessments, fines, settlements, costs or expenses (including interest, penalties and reasonable fees, expenses and disbursements 

  

 17 

 
of attorneys, experts, personnel and consultants incurred by the indemnified party in any action or proceeding between the indemnifying party and the
indemnified party or between the indemnified party and any third party, or otherwise) (collectively, “Losses”) to the extent resulting from any breach of any representation or warranty of such party contained in Section 6.01.

  
 (b) Each Person that received DWA LLC Interests in the DW
Distribution (and DWI II, on behalf of DWI) shall indemnify, defend and hold harmless DW and the other Members (and their respective directors, officers, employees, affiliates, successors and assigns) from and against all Claims and Losses,
including any effect resulting from the application of Section 743(b)(2) of the Internal Revenue Code, to the extent resulting from any breach by such Person of the representation contained in Section 6.02. 
  
 (c) The Company shall indemnify, defend and hold harmless each other party
(and each such other party’s directors, officers, employees, affiliates, successors and assigns) from and against all Claims and Losses to the extent resulting from any breach of the representation and warranty of the Company contained in
Section 6.03. 
  
 (d) The Person making a claim under this Section
6.05 is referred to as the “Indemnitee” and the party subject to providing indemnification in respect of such claim is referred to as the “Indemnitor”. All claims by any Indemnitee under this Section 6.05 shall be
asserted and resolved as follows: 
  
 Promptly
after receipt by the Indemnitee of notice of any Claim or circumstances which, with the lapse of time, would or might give rise to a Claim or Loss or the commencement (or threatened commencement) of a Claim or any action, proceeding or investigation
that may result in a Loss (including a claim of a Loss that does not involve a third-party claim) (an “Asserted Liability”), the Indemnitee shall give notice thereof (the “Claims Notice”) to the Indemnitor;
provided, that failure to give a Claims Notice in the context of a third-party claim shall in no way diminish the Indemnitor’s obligations hereunder, except to the extent such failure is finally determined by a court of competent
jurisdiction to have actually and materially prejudiced the Indemnitor. The Claims Notice shall describe the Asserted Liability in reasonable detail and shall indicate the amount (estimated, if necessary and to the extent feasible) of the Loss that
has been or may be suffered by the Indemnitee. 
  
 (e) The
Indemnitor may elect to defend (and, unless the Indemnitor has specified any reservations or exceptions, to seek to settle or compromise, so long as such settlement or compromise contains an unconditional release of each Indemnitee, whether or not a
party to the applicable third party claim), at its own expense and by its own counsel reasonably acceptable to the Indemnitee, any Asserted Liability arising from a third-party claim. If the Indemnitor elects to compromise or defend such Asserted
Liability, it shall within 30 days (or sooner, if the nature of the Asserted Liability so requires) notify the Indemnitee of its intent to do so, and the Indemnitee shall cooperate, at the expense of the Indemnitor, in the compromise of, or defense
against, such Asserted Liability. Should the Indemnitor make such election, the Indemnitor shall not be liable to the Indemnitee for legal expenses subsequently incurred by the Indemnitee in connection with the compromise of, or defense against,
such Asserted Liability. If the 

  

 18 

 
Indemnitor elects not to compromise or defend the Asserted Liability, fails to notify the Indemnitee of its election as herein provided or contests its
obligation to indemnify under this Agreement, the Indemnitee may pay, compromise or defend such Asserted Liability. Notwithstanding the foregoing, neither the Indemnitor nor the Indemnitee may settle or compromise any Asserted Liability over the
objection of the other; provided, that consent to settlement or compromise shall not be unreasonably withheld in the case of a settlement or compromise which involves only monetary relief which the Indemnitor has agreed to pay and which
includes a full and unconditional release of the Indemnitee. In any event, the Indemnitee and the Indemnitor may participate, at their own expense, in the defense of such Asserted Liability. If the Indemnitor chooses to defend any Asserted
Liability, the Indemnitee shall make available to the Indemnitor any books, records or other documents within its control that are necessary or appropriate for such defense, and, if the Indemnitee chooses to defend any Asserted Liability, the
Indemnitor shall make available to the Indemnitee any books, records or other documents within its control that are necessary or appropriate for such defense. 
  

ARTICLE VII 
  
 General Provisions 
  
 Section 7.01. Notices. All notices and other communications hereunder shall be in writing and shall be deemed duly given and received (a) on the date of delivery if delivered personally, or by facsimile upon confirmation of
transmission by the sender’s fax machine if sent on a Business Day (or otherwise on the next Business Day) or (b) on the first Business Day following the date of dispatch if delivered by a recognized next-day courier service. All notices
hereunder shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing by the party to receive such notice: 
  
 (i) if to the Company, to: 
  
 DreamWorks Animation SKG, Inc. 
 Grandview
Building 
 1000 Flower Street 
 Glendale, California 91201 
 Fax: (818) 659-6123 
 Attention: Katherine Kendrick, General Counsel 
  
 with a copy to: 
  
 Cravath,
Swaine & Moore LLP 
 Worldwide Plaza 
 825 Eighth Avenue 
 New York, NY 10019-7475 
 Fax: (212) 474-3700 
 Attention: Faiza J.
Saeed 
  
  

 19 

 (ii) if to DWI II, to: 
  
 DW Investment II, Inc. 
 505 Fifth Avenue South 
 Suite 900 
 Seattle, WA 98104 
 Fax: (206) 342-3000

 Attention: W. Lance Conn, Executive Vice President, Investment Management; and Executive Vice President, Legal 
  
 with a copy to: 
  
 Skadden, Arps, Slate, Meagher & Flom LLP 
 300 South Grand Avenue, Suite 3400 
 Los
Angeles, CA 90071 
 Fax: (213) 687-5600 
 Attention: Nicholas P. Saggese 
 David C. Eisman 
  
 (iii) if to any other party hereto, to the address of such party specified on
the signature page hereto. 
  
 Section 7.02. Counterparts.
This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective (a) when one or more counterparts have been signed by each of the parties and delivered to the other
parties, it being understood that all parties need not sign the same counterpart or (b) if later, immediately after effectiveness of the Underwriting Agreement. 
  

Section 7.03. Entire Agreement; No Third Party Beneficiaries. (a) This Agreement constitutes the entire agreement and supersedes all prior
agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof. 
  
 (b) This Agreement shall be binding upon and inure solely to the benefit of each party hereto, and nothing in this Agreement, other than as set forth in
Section 6.05, express or implied, is intended to or shall confer upon any other Person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. 
  
 Section 7.04. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State
of New York without giving effect to applicable principles of conflict of laws, except to the extent the substantive laws of the State of Delaware are mandatorily applicable under Delaware law. 
  
 Section 7.05. Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in

  

 20 

 
good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the
transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible. 
  
 Section 7.06. Assignment; Amendments. (a) Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any
of the parties hereto, in whole or in part (whether by operation of law or otherwise), without the prior written consent of the other parties, and any attempt to make any such assignment without such consent shall be null and void. Subject to the
preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by, the parties and their respective successors and assigns. 
  

(b) No amendment to this Agreement shall be effective unless it shall be in writing and signed by each of the Company, DW, Holdco, M&J K B, DG-DW,
DWI II and Contributing Members (including M&J K B, DG-DW and DWI II) owning at least a majority-in-interest of the Interests (as defined in the Holdco Partnership Agreement) then outstanding (based on their Adjusted DreamWorks Participation
Percentages (as defined in the Holdco Partnership Agreement)); provided, that no amendment shall affect the rights or obligations of a party hereto without the consent of such party. The parties acknowledge and agree that the provisions of
Articles III and IV hereof are solely for the benefit of the Contributing Members, the Company and Holdco. 
  
 Section 7.07. Enforcement. (a) Each party hereto acknowledges that the other parties would not have an adequate remedy at law for money damages in
the event that any of the covenants or agreements of any of the other parties in this Agreement were not performed in accordance with its terms, and it is therefore agreed that each party hereto, in addition to and without limiting any other remedy
or right it may have, will have the right to an injunction or other equitable relief in any court of competent jurisdiction, enjoining any such actual or potential breach and enforcing specifically the terms and provisions hereof, and each party
hereto hereby waives (i) any and all defenses it may have on the ground of lack of jurisdiction or competence of the court to grant such an injunction or other equitable relief and (ii) the need to post any bond that may be required in connection
with the granting of such an injunction or other equitable relief. 
  
 (b) All rights, powers and remedies provided under this Agreement or otherwise available in respect hereof at law or in equity shall be cumulative and not alternative, and the exercise or beginning of the exercise of any thereof by any
party shall not preclude the simultaneous or later exercise of any other such right, power or remedy by such party. 
  
 Section 7.08. Titles and Subtitles. The titles of the sections and subsections of this Agreement are for convenience of reference only and are not
to be considered in construing this Agreement. 
  
 Section 7.09.
Submission to Jurisdiction; Waivers. With respect to any suit, action or proceeding relating to this Agreement (collectively, a “Proceeding”), each party to this Agreement irrevocably (a) consents and submits to the exclusive
jurisdiction of the courts of the States of New York and the Court of Chancery of the State of Delaware and any court of the United States located in the Borough of Manhattan in New York City; (b) waives any objection 

  

 21 

 
which such party may have at any time to the laying of venue of any Proceeding brought in any such court, waives any claim that such Proceeding has been
brought in an inconvenient forum and further waives the right to object, with respect to such Proceeding, that such court does not have jurisdiction over such party; (c) consents to the service of process at the address set forth for notices in
Section 7.01 herein; provided, that such manner of service of process shall not preclude the service of process in any other manner permitted under applicable law and (d) waives, to the fullest extent permitted by applicable law, any and all
rights to trial by jury in connection with any Proceeding. 
  

 22 

 IN WITNESS HEREOF, the parties hereto have caused this Agreement to be duly executed and delivered as of
the date first written above. 
  

					
	
	DREAMWORKS ANIMATION SKG, INC.,
		
	By	 	 /s/ Katherine Kendrick

	Name:	 	 	  	Katherine Kendrick
	Title:	 	 	  	Vice President
	
	Address:

  

					
	
	 DREAMWORKS L.L.C.,

		
	By	 	 /s/ Brian Edwards

	Name:	 	 	  	Brian Edwards
	Title:	 	 	  	Vice President
	
	 Address:

  

					
	
	DWA ESCROW LLLP,
		
	By	  	 /s/ Richard Sherman

	Name:	  	Richard Sherman
	Title:	  	CFO
	
	Address:

  

					
	
	M&J K DREAM LIMITED PARTNERSHIP,
		
	By	  	 M&J K DREAM CORP.,
 General
Partner

			
	 	  	By	  	 /s/ Jeffrey Katzenberg

	 	  	Name:	  	Jeffrey Katzenberg
	 	  	Title:	  	President
	
	Address:

  

 23 

					
	 M&J K B LIMITED PARTNERSHIP,

		
	By	  	 M&J K DREAM CORP.,
 General
Partner

			
	 	  	By	  	 /s/ Jeffrey Katzenberg

	 	  	Name:	  	Jeffrey Katzenberg
	 	  	Title:	  	President
	
	Address:

  

			
	
	 THE JK ANNUITY TRUST,

		
	By	  	 /s/ Jeffrey Katzenberg

	Name:	  	Jeffrey Katzenberg
	Title:	  	Authorized Signatory
	
	Address:

  

			
	
	 THE MK ANNUITY TRUST,

		
	By	  	 /s/ Jeffrey Katzenberg

	Name:	  	Jeffrey Katzenberg
	Title:	  	Authorized Signatory
	
	Address:

  

			
	
	 KATZENBERG 1994 IRREVOCABLE TRUST,

		
	By	  	 /s/ David Geffen

	 Name:
 Title:
	  	David Geffen
	
	 Address:

  

 24 

					
	 DG-DW, L.P.,

		
	 By
	  	 DG-DW, INC.,
 General Partner

			
	 	  	 By
	  	 /s/ Richard Sherman

	 	  	 Name:
 Title:
	  	 Richard Sherman
 CFO

	
	 Address:

  

					
	
	 DW LIPS, L.P.,

		
	 By
	  	 DW SUBS. INC.,
 General Partner

			
	 	  	 By
	  	 /s/ Michael Rutman

	 	  	 Name:
 Title:
	  	 Michael Rutman
 Treasurer

	
	 Address:

  

			
	
	 DW INVESTMENT II, INC.,

		
	 By
	  	 /s/ W. Lance Conn

	 Name:
 Title:
	  	 W. Lance Conn
 Vice President

  

			
	
	 LEE ENTERTAINMENT, L.L.C.,

		
	 By
	  	 /s/ Gyeong C. Park

	 Name:
 Title:
	  	 Gyeong C. Park
 Authorized Person

	
	 Address:

	
	 with a copy to:

  

 25 

			
	 CHEMICAL INVESTMENTS, INC.,

		
	By	  	 /s/ Jeffrey C. Walker

	 Name:
 Title:
	  	 Jeffrey C. Walker
 President

	
	Address:

  

			
	
	 MICROSOFT CORPORATION,

		
	By	  	 /s/ George Zinn

	 Name:
 Title:
	  	 George Zinn
 Treasurer

	
	Address:

  

					
	
	 ZIFF INVESTORS PARTNERSHIP, L.P. IIA,

		
	By	  	 Ziff Investment Management, LLC,
 General
Partner

			
	 	  	By	  	 /s/ Mark Beaudoin

	 	  	 Name:
 Title:
	  	 Mark Beaudoin
 Treasurer

	
	Address:

  

			
	 CARL O. ROSENDAHL,

		
	 	 	 /s/ Carl O. Rosendahl

	
	Address: 315 Fletcher Dr
	Atherton, CA 94027

  

 26 

			
	VIVENDI UNIVERSAL ENTERTAINMENT LLLP,
		
	 By
	  	 /s/ Karen Randall

	Name:	  	Karen Randall
	Title:	  	Executive Vice President and General Counsel
	
	 Address:

  

			
	
	 THOMSON INC.,    

		
	 By
	  	 /s/ Brian Kelly

	 Name:
 Title:
	  	 Brian Kelly
 Authorized Signer

	
	 Address: 3233 East Mission Oaks Blvd.
 Camarillo, CA 93012

  

 27 

			
	 KADOKAWA ENTERTAINMENT U.S. INC.,

		
	 By
	 	 /s/ Yasushi Shiina

	 Name:
 Title:
	 	 Yasushi Shiina
 President

		
	 Address:
	 	 

  

 28 

			
	 GENERAL ELECTRIC COMPANY,

		
	 By
	  	 /s/ Richard Cotton

	 Name:
 Title:
	  	 Richard Cotton
 Executive Vice President and General
Counsel

	
	 Address: 3135 Easton Turnpike, W3
 Fairfield, Connecticut 06431

  

			
	
	 NBC UNIVERSAL, INC.,

		
	 By
	  	 /s/ Richard Cotton

	 Name:
 Title:
	  	 Richard Cotton
 Executive Vice President and General
Counsel

	
	 Address: 30 Rockefeller Plaza
 New York, New York 10112

  

			
	
	 CJ CORP.,

		
	 By
	  	 /s/ Jae-Ho Lee

	 Name:
 Title:
	  	 Jae-Ho Lee
 CFO

	
	 Address:

  

			
	
	 Steven Spielberg,

		
	 	 	 /s/ Steven Spielberg

	
	 Address:

  

 29 

			
	
	 JEFFREY KATZENBERG,

		
	 	 	 /s/ Jeffrey Katzenberg

	
	 Address:

  

			
	
	 DAVID GEFFEN,

		
	 	 	 /s/ David Geffen

	
	 Address:

  

			
	
	 PAUL ALLEN,

		
	 	 	 /s/ Paul Allen

	
	 Address:

  

 30

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]