Document:

Unassociated Document

    SECOND
      AMENDMENT TO MANAGEMENT AGREEMENT

    

    Dated
      February 14, 2008

     

    This
      Second Amendment to Management Agreement (this “Amendment”)
      is
      made to the Management Agreement (the “Agreement”),
      dated
      March 30, 2007, by and between ZelnickMedia Corporation, a New York corporation
      (“ZelnickMedia”)
      and
      Take-Two Interactive Software, Inc., a Delaware corporation (the “Company”),
      as
      amended on July 26, 2007. 

     

    WHEREAS,
      the Company acknowledges and agrees that ZelnickMedia has and continues to
      provide services in excess of those required to be performed by ZelnickMedia
      pursuant to the terms of the Agreement, including by providing the services
      of
      Benjamin Feder as Chief Executive Officer of the Company, and 

     

    WHEREAS,
      the Company desires to make such services available on a permanent basis for
      the
      term of the Agreement;

     

    NOW,
      THEREFORE, in consideration of the foregoing and the respective agreements
      hereinafter set forth, and the mutual benefits to be derived herefrom,
      ZelnickMedia and the Company hereby agree as follows:

     

    1.
      Management
      Fee.
      Section
      4 of the Agreement shall be amended and restated in its entirety as
      follows:

     

    “4.
      Management
      Fee.
      On the
      first day of each month during the term of this Agreement (each, a “Payment
      Date”),
      beginning April 1, 2008, the Company shall pay to ZelnickMedia a monthly
      management fee of $208,333.33 ($2,500,000 per annum) in immediately available
      funds (the “Management
      Fee”).
      On
      March 1, 2008, the Company shall pay to ZelnickMedia a monthly management fee
      of
      $62,500, unless this Agreement is terminated in accordance with its terms prior
      to such date.”

     

    2.
      Annual
      Bonus.
      Section
      5 of the Agreement shall be amended and restated in its entirety as
      follows:

     

    “5.
      Annual
      Bonus.
      In
      addition to the Management Fee, ZelnickMedia shall receive an annual bonus
      (the
“Annual
      Bonus”)
      of up
      to $2,500,000 for each fiscal year of the Company ending on or after October
      31,
      2008; provided,
      that
      the maximum Annual Bonus for the fiscal year ending October 31, 2008 shall
      be
      pro rated to reflect a maximum Annual Bonus of $750,000 prior to April 1, 2008,
      as determined by the Compensation Committee of the Board. The actual amount
      of
      the Annual Bonus shall be determined by the Compensation Committee of the Board
      with respect to each fiscal year ending after the date hereof, and shall be
      payable within 15 days of the Company’s receipt of its audited financial
      statements for the applicable
      fiscal year, but
      in
      any event paid prior to March 15 of the calendar year following the fiscal
      year
      to which the Annual Bonus relates,
      as
      follows::

     

    
      	
            	i.	
              In
                the event actual results in a given fiscal year during the term of
                this
                Agreement are less than 80% of the Target (as defined below), the
                Annual
                Bonus shall be zero.

            

    

     

    
      	
            	ii.	
              In
                the event actual results in a given fiscal year during the term of
                this
                Agreement are equal to or greater than 80% of the Target but less
                than
                100% of the Target, the Annual Bonus shall be between zero and $1,250,000,
                pro rated on a straight-line basis between 80% and 100% based upon
                the
                actual percentage of Target
                achieved.

            

    

     

    
      	
            	iii.	
              In
                the event actual results in a given fiscal year during the term of
                this
                Agreement are equal to or greater than 100% of the Target but less
                than
                120% of the Target, the Annual Bonus shall be between $1,250,000
                and
                $2,500,000, pro rated on a straight-line basis between 100% and 120%
                based
                upon the actual percentage of Target
                achieved.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	iv.	
              In
                the event actual results in a given fiscal year during the term of
                the
                Agreement are equal to or greater than 120% of the Target, the Annual
                Bonus shall be $2,500,000.

            

    

     

    For
      example, if the actual results in a given fiscal year are 110% of the Target
      (as
      defined in the Agreement), the Annual Bonus shall be $1,875,000 (without giving
      effect to the proviso in the first sentence of this Section 5).

     

    The
      term
“Target” shall mean budgeted EBITDA of the Company (or other measurement of
      financial performance reasonably determined by the members of the Board,
      excluding the designees of ZelnickMedia pursuant to Section 3 above, and agreed
      with ZelnickMedia for a particular year), determined within 30 days of the
      beginning of that year by mutual agreement of the Company and ZelnickMedia,
      each
      acting reasonably and in good faith, and measured without giving effect to
      any
      payments under this Agreement.”

     

    3.
      Personnel.
      Section
      3 of the Agreement shall be amended and restated in its entirety as
      follows:

     

    “3.
      Personnel.

     

    (i)
      ZelnickMedia shall provide and devote to the performance of this Agreement
      such
      employees, agents and representatives of ZelnickMedia, and for such time, as
      ZelnickMedia shall deem appropriate for the furnishing of the services required
      hereunder. Notwithstanding the generality of the foregoing, it is agreed that
      in
      the performance of its duties hereunder, ZelnickMedia shall make available
      the
      following individuals to provide the described services:

     

    (A)
      During the term of the Agreement Strauss Zelnick shall serve as the Executive
      Chairman of the Board, and shall devote a sufficient amount of his business
      time
      to the performance of his duties during the term of this Agreement, consistent
      with past practice.

     

    (B)
      Benjamin
      Feder shall serve as Chief Executive Officer (“CEO”)
      of the
      Company and shall enter into an employment agreement setting forth the duties
      of
      such position and providing for an annual salary of $1.00. 

     

    (C)
      Karl
      Slatoff shall serve as an Executive Vice President of the Company and shall
      enter into an employment agreement setting forth the duties of such position
      and
      providing for an annual salary of $1.00. 

     

    (D)
      Other
      ZelnickMedia personnel as appropriate, shall provide services to the Company
      on
      a project-by-project, as needed basis.

     

    (ii)
      In
      the event that Mr. Feder or any other employee of ZelnickMedia acting in an
      executive capacity for the Company is unable or unavailable to serve as CEO
      of
      the Company or such other capacity, as the case may be, ZelnickMedia shall
      provide a qualified individual to serve in such capacity, who must be reasonably
      satisfactory to the Board. If ZelnickMedia does not provide a qualified
      replacement reasonably acceptable to the Board within a reasonable period of
      time, the Company may fill such position with a person not affiliated with
      ZelnickMedia and deduct the costs of such person’s compensation (including cash
      and equity compensation) from ZelnickMedia’s compensation under the Agreement;
provided,
      however,
      that
      such costs shall not be deducted from ZelnickMedia’s compensation hereunder if
      Mr. Feder or such other employee of ZelnickMedia, as applicable, is terminated
      by the Company without Cause or resigns for Good Reason (each as defined in
      such
      person’s employment agreement with the Company). The Compensation Committee of
      the Board of Directors of the Company shall determine the value of the equity
      awarded to such replacement person and the appropriate deductions from the
      cash
      and equity compensation payable to ZelnickMedia (including, the Management
      Fee
      and Annual Bonus, and the equity awards pursuant to Section 6 below);
provided,
      however,
      that in
      no event shall ZelnickMedia be required to forfeit any cash compensation paid
      to
      ZelnickMedia or any vested equity awards, whether granted pursuant to Section
      6
      below or otherwise.”

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    4.
      Equity
      Award.
      The
      following shall be added to Section 6 of the Agreement immediately prior to
      the
      final paragraph of such Section 6:

     

    “ZelnickMedia
      (or upon the prior written notice of ZelnickMedia to the Company, an affiliate
      of ZelnickMedia) shall be entitled to receive 600,000 shares of time-based
      restricted stock of the Company and 900,000 shares of performance-based
      restricted stock of the Company, pursuant to and in accordance with the terms
      and conditions of the agreements attached as Exhibit
      A
      and
Exhibit
      B
      hereto,
      respectively (the “Grant
      Agreements”),
      to be
      granted on the Issuance Date (as defined in the Second Amendment to the
      Management Agreement). In the event that there is a Change in Control on or
      after the Effective Date and prior to the Issuance Date, the Board shall act
      in
      good faith to take all reasonably necessary actions to compensate ZelnickMedia
      for the economic value it could have received if such Change in Control had
      occurred following the Issuance Date in accordance with the terms and conditions
      of each of the Grant Agreements.

     

    All
      shares of restricted stock granted pursuant to the Grant Agreements shall be
      subject to the restrictions and benefits set forth in the last paragraph of
      this
      Section 6. Notwithstanding anything to the contrary contained in Section 8
      of
      the Agreement, upon any Change in Control, the shares of restricted stock
      granted pursuant to the Grant Agreements shall vest solely in accordance with
      the terms of the respective Grant Agreement and Section 8 of the Agreement
      shall
      have no effect with respect to such shares of restricted stock.“

     

    5.
      Registration
      Statement.
      The
      following shall be added as Section 23 of the Agreement:

     

    “23.
      Registration
      Statement.
      Subject
      to the receipt of necessary information from ZelnickMedia (or its designated
      affiliate, if applicable) for inclusion in such filing, the Company shall,
      within six months of the Effective Date, file a registration statement on Form
      S-3 (or any applicable successor registration form) (the “Registration
      Statement”)
      covering the shares of the common stock granted to ZelnickMedia pursuant to
      Section 6 above, including the shares of common stock issuable upon exercise
      of
      the stock option granted to ZelnickMedia on August 27, 2007. The Company shall
      use its reasonable best efforts to prepare and file with the Securities and
      Exchange Commission such amendments and supplements to the Registration
      Statement and the prospectus used in connection therewith as may be necessary
      to
      keep the Registration Statement continuously effective and free from any
      material misstatement or omission to state a material fact until such time
      as
      all such shares of common stock have been sold pursuant to a registration
      statement or are otherwise freely tradeable.”

     

    6.
      Term.
      The
      term of the Agreement, as set forth in Section 8 thereof, shall be extended
      by
      one (1) year, to expire on October 31, 2012. Accordingly, all references to
      October 31, 2011 contained in the Agreement shall be replaced with “October 31,
      2012”.

     

    7.
      Transfer
      to ZM Capital.
      Pursuant to Section 16 of the Agreement, the Company hereby consents to the
      assignment by ZelnickMedia of all of its rights and obligations under the
      Agreement to ZM Capital Advisors, LLC, a Delaware limited liability company
      (“ZM
      Capital”);
      provided,
      however,
      that
      ZelnickMedia shall remain liable for all of the obligations hereunder and under
      the Agreement. In the event ZelnickMedia elects to effect such assignment to
      ZM
      Capital, it shall cause ZM Capital to execute a joinder agreement to the
      Agreement in form and substance reasonably acceptable to the
      Company.

     

    8.
      Additional
      Compensation.
      In the
      event that the there is a Change in Control (as defined in the Agreement) the
      Compensation Committee of the Board of Directors of the Company shall consider
      in good faith (taking into consideration such factors including, but not limited
      to, (x) the contributions of ZelnickMedia and its personnel to the Company
      pursuant to the Management Agreement and otherwise, and (y) the cash and equity
      compensation paid to ZelnickMedia by the Company during the term of the
      Agreement including, without limitation, in connection with such Change in
      Control) and recommend to the independent members of the Board, the amount
      of
      additional compensation, if any, to be paid to ZelnickMedia in connection with
      such Change in Control. The independent members of the Board shall consider
      such
      recommendation and determine in good faith (taking into consideration such
      factors including, but not limited to, (x) the contributions of ZelnickMedia
      and
      its personnel to the Company pursuant to the Management Agreement and otherwise,
      and (y) the cash and equity compensation paid to ZelnickMedia by the Company
      during the term of the Agreement including, without limitation, in connection
      with such Change in Control) the amount of additional compensation, if any,
      to
      be paid to ZelnickMedia in connection with such Change in Control.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    9.
      Recommendation.
      The
      Company shall include the Proposals (as defined below) in the proxy statement
      for the 2008 annual meeting of the stockholders of the Company and the Board
      shall recommend that the stockholders vote “FOR” the Proposals.

     

    10.
      No
      Further Amendments.
      ZelnickMedia and the Company acknowledge and agree that the Agreement, as
      amended by the First Amendment to the Agreement and this Amendment, will not
      be
      further revised during the balance of the term of the Agreement.

     

    11.
      Effective
      Date.
      This
      Amendment, other than Sections 4, 5 and 10 (the “Contingent
      Provisions”),
      shall
      be binding upon the parties as of the date hereof. The Contingent Provisions
      shall be of no force or effect unless and until, at the 2008 annual meeting
      of
      stockholders of the Company, such stockholders approve an amendment to the
      Company’s Incentive Stock Plan to permit grants of equity awards to consultants
      and to increase the number of shares authorized for issuance under such plan
      (the “Proposals”).
      In
      the event such amendment is approved by the stockholders of the Company, then
      the Contingent Provisions shall become effective on and as of the date of the
      2008 annual meeting of stockholders of the Company (the “Effective
      Date”)
      and
      the shares of restricted stock described in Section 4 above shall be granted
      on
      the earlier of (i) the fifth trading day following the filing of the Company’s
      Quarterly Report on Form 10-Q for its second fiscal quarter (ending April 30,
      2008), currently anticipated to be in June 2008 and (ii) June 30, 2008 (such
      earlier date, the “Issuance
      Date”).
      If
      such amendment to the Company’s Incentive Stock Plan is not approved at the 2008
      annual meeting, then the Contingent Provisions will be null and void and the
      parties will have no obligations thereunder.

     

    12.
      Miscellaneous.
      Except
      as expressly provided herein, the Agreement remains unchanged and in full force
      and effect. This Amendment may be executed and delivered by each party hereto
      in
      separate counterparts, each of which when so executed and delivered shall be
      deemed an original and both of which taken together shall constitute one and
      the
      same agreement. This Amendment and any dispute arising hereunder shall be
      governed by and construed in accordance with the domestic laws of the State
      of
      Delaware, without giving effect to any choice of law or conflict of laws
      provision or rule (whether of the State of Delaware or any other jurisdiction)
      that would cause the application of the laws of any jurisdiction other than
      the
      State of Delaware.

     

    *
      * * *
      *

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    IN
      WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
      executed and delivered on the date and year first above written.

     

    
      
        	
                 

              	
                ZELNICKMEDIA
                  CORPORATION

              
	
                 

              	
                 

              
	
                 

              	
                By:

              	
                /s/
                  Strauss Zelnick     

              
	
                 

              	
                 

              	
                Name:
                  Strauss Zelnick

              
	
                 

              	
                 

              	
                Title:
                  President

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                TAKE-TWO
                  INTERACTIVE SOFTWARE, INC.

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                By:
                  

              	
                /s/
                  Michael Dornemann       
                  

              
	
                 

              	
                 

              	
                Name:
                  Michael Dornemann

              
	
                 

              	
                 

              	
                Title:
                  Director

              
	 	 	 
	 	
                By:

              	/s/
                Seth D. Krauss
	 	 	Name: Seth
                D.
                Krauss
	 	 	
                Title: Executive Vice 

                President and General Counsel.

              
	 	 	 

      

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

      EXHIBIT
        A

      

      RESTRICTED
        STOCK AGREEMENT

      PURSUANT
        TO THE

      TAKE-TWO
        INTERACTIVE SOFTWARE, INC.

      INCENTIVE
        STOCK PLAN

      

      This
        Restricted Stock Agreement (this “Agreement”),
        dated
        June [ ], 2008, is made by and between Take-Two Interactive Software, Inc.
        (the
“Company”)
        and
        [                           ]
        (the “Participant”).

      

      WITNESSETH:

      

      WHEREAS,
        the
        Company has adopted the Take-Two Interactive Software, Inc. Incentive Stock
        Plan, as amended through the date hereof (the “Plan”),
        which
        is administered by the Compensation Committee (the “Committee”)
        of the
        Company’s Board of Directors (the “Board”);

      

      WHEREAS,
        pursuant
        to Section 5 of the Plan, the Committee may grant to Consultants shares of
        its
        common stock, par value $0.01 per share (“Common
        Stock”);

      

      WHEREAS,
        pursuant
        to the Management Agreement between ZelnickMedia Corporation (“ZelnickMedia”)
        and
        the Company, dated as of March 30, 2007, as amended on July 26, 2007 and
        February 14, 2008 (the “Management
        Agreement”),
        the
        Company agreed to issue to ZelnickMedia
        or one its designated affiliates,
        and the
        Committee has approved the grant of, the Common Stock set forth herein;
        and

      

      WHEREAS,
        such
        shares of Common Stock granted to the Participant hereunder are to be subject
        to
        certain restrictions prior to and following the vesting thereof.

      

      NOW,
        THEREFORE,
        for and
        in consideration of the mutual promises herein contained, and for other good
        and
        valuable consideration, the receipt and sufficiency of which are hereby
        acknowledged, the parties agree as follows:

      

      1. Grant
        of Shares.
        Subject
        to the restrictions, terms and conditions of this Agreement, the Company
        hereby
        awards, effective as of the date hereof, to the Participant Six Hundred Thousand
        (600,000) shares of duly authorized, validly issued, fully paid and
        non-assessable Common Stock (the “Shares”).
        Pursuant to Sections 2(a), 3(c) and 3(d) hereof, the Shares are subject to
        certain transfer restrictions and possible risk of forfeiture. While such
        restrictions are in effect, the Shares subject to such restrictions shall
        be
        referred to herein as “Restricted
        Stock.”

       

      2. Restrictions
        on Transfer. 

       

      (a) Restricted
        Stock.
        The
        Participant shall not sell, transfer, pledge, hypothecate, assign or otherwise
        dispose of the Restricted Stock, except as set forth in the Plan or this
        Agreement. Any attempted sale, transfer, pledge, hypothecation, assignment
        or
        other disposition of the Restricted Stock in violation of the Plan or this
        Agreement shall be void and of no effect and the Company shall have the right
        to
        disregard the same on its books and records and to issue “stop transfer”
instructions to its transfer agent. Restricted Stock shall be transferable
        to
        any affiliate of the Participant, in whole or in part, provided that such
        Shares
        shall remain subject to the terms of this Agreement and each transferee agrees
        in writing to take such Shares subject to and to comply with the restrictions
        on
        transfer contained in this Agreement.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      (b) Common
        Stock.
        Until
        October 31, 2012 or earlier if the Management Agreement is earlier terminated
        in
        accordance with its terms, the Participant shall not sell or otherwise dispose
        (other than to an affiliate or employee of the Participant) of any shares
        of
        Common Stock acquired hereunder and the preceding restriction shall not be
        waivable by the Company without the approval of stockholders holding a majority
        of the Company’s outstanding voting securities at the time such approval is
        given; provided,
        however,
        that
        the foregoing shall not limit the right of the Participant and/or any
        Permitted Transferee (as defined below)
        to sell
        or otherwise dispose of that number of shares of Common Stock necessary to
        satisfy any taxes imposed on the Participant, its shareholders, its affiliates
        and/or its members or partners, or
        Permitted Transferees,
        as a
        result of the vesting of the shares of Restricted Stock hereunder or in
        connection with the transfer of shares by the Participant to such Permitted
        Transferee;
        provided, further, that in
        connection with any transfer of shares by the Participant to Permitted
        Transferee, each such
        transferee agrees in writing to take such Shares subject to and comply with
        the
        restrictions on transfer contained in this Agreement.
        For
        purposes of this Agreement, “Permitted
        Transferee”
shall
        mean (i) an affiliate or employee of the Participant, (ii) any transfer for
        estate planning purposes to or for the benefit of any spouse, child or
        grandchild of an employee of the Participant or its affiliates, or (iii)
        any
        trust or partnership for the benefit of any of the foregoing individuals,
        including transfers by will or the laws of descent and
        distribution.

      

      3. Restricted
        Stock.

       

      (a) Retention
        of Certificates.
        Promptly
        after the date of this Agreement, the Company shall issue stock certificates
        representing the Restricted Stock unless it elects to recognize such ownership
        through book entry or another similar method pursuant to Section 8 herein.
        The
        stock certificates shall be registered in the Participant’s name and shall bear
        any legend required under the Plan or Section 4 hereof. Unless held in book
        entry form, such stock certificates shall be held in custody by the Company
        (or
        its designated agent) until the restrictions thereon shall have lapsed. The
        Participant shall deliver to the Company a duly signed stock power, endorsed
        in
        blank, relating to the Restricted Stock; provided,
        that such stock power shall provide that it may only be used to effect a
        transfer back to the Company upon the forfeiture by the Participant of the
        Restricted Stock in accordance with the provisions of this Agreement.
        If the
        Participant receives a stock dividend or extraordinary cash dividend on the
        Restricted Stock or the Restricted Stock is split or the Participant receives
        any other shares, securities, moneys or property representing a dividend
        on the
        Restricted Stock (other than regular cash dividends and other cash equivalent
        distributions on and after the date of this Agreement) or representing a
        distribution or return of capital upon or in respect of the Restricted Stock
        or
        any part thereof, or resulting from a split-up, reclassification or other
        like
        changes of the Restricted Stock, or otherwise received in exchange therefor,
        and
        any warrants, rights or options issued to the Participant in respect of the
        Restricted Stock (collectively “RS
        Property”),
        the
        Participant will also immediately deposit with and deliver to the Company
        any of
        such RS Property, including any certificates representing shares duly endorsed
        in blank or accompanied by stock powers duly executed in blank (provided,
        that
        such stock powers shall provide that they may only be used to effect a transfer
        back to the Company upon the forfeiture by the Participant of such RS Property
        in accordance with the provisions of this Agreement), and such RS Property
        shall
        be subject to the same restrictions, including that of this Section 3(a),
        as the
        Restricted Stock with regard to which they are issued and shall herein be
        encompassed within the term “Restricted Stock.”

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (b) Rights
        with Regard to Restricted Stock.
        The
        Participant will have the right to vote the Restricted Stock, to receive
        and
        retain any regular cash dividends and other cash equivalent distributions
        (but
        not any dividends that constitute RS Property) payable to holders of Common
        Stock of record on and after the transfer of the Restricted Stock (although
        such
        dividends shall be treated, to the extent required by applicable law, as
        additional compensation for tax purposes if paid on Restricted Stock and
        any
        dividends that constitute RS Property will be subject to the restrictions
        provided herein), and to exercise all other rights, powers and privileges
        of a
        holder of Common Stock with respect to the Restricted Stock set forth in
        the
        Plan,
        including the right to tender the Restricted Stock (although the consideration
        received in respect thereof shall be treated as “Restricted Stock”
hereunder),
        with
        the exceptions that: (i) the Participant will not be entitled to delivery
        of the
        stock certificate or certificates representing the Restricted Stock until
        the
        Restriction Period shall have expired; (ii) the Company (or its designated
        agent) will retain custody of the stock certificate or certificates representing
        the Restricted Stock and the other RS Property during the Restriction Period;
        (iii) no RS Property shall bear interest or be segregated in separate accounts
        during the Restriction Period; and (iv) the Participant may not sell, assign,
        transfer, pledge, hypothecate, exchange, encumber or otherwise dispose of
        the RS
        Property during the Restriction Period except
        as
        otherwise permitted under the Plan or this Agreement.

       

      (c) Vesting.

       

      (i) The
        Restricted Stock shall become vested and cease to be Restricted Stock (but
        shall
        remain subject to the other terms of this Agreement and the Plan) in the
        amounts
        set forth opposite the Vesting Dates listed in the table below; provided,
        that
        with respect to each tranche the Management Agreement shall not have been
        terminated (other than a termination by ZelnickMedia
        or its assignee
        with
        Good Reason (as defined in the Management Agreement) or by the Company without
        Cause (as defined in the Management Agreement)) (a “Termination”)
        prior
        to such date;
        provided, further, shares of Restricted Stock that do not vest on or prior
        to
        June [ ], 2011 shall be forfeited and shall revert back to the Company without
        any payment to the Participant, and the Participant shall thereafter have
        no
        rights with respect to such shares of Restricted Stock; provided, further,
        that
        all shares of Restricted Stock shall immediately vest in the event the
        Management Agreement is terminated by the Company without Cause or by
        ZelnickMedia or its assignee for Good Reason.

       

      
        	
                Vesting
                  Date

              	 	
                Shares
                  Vested

              
	 	 	 
	
                June
                  [  ], 2009

              	 	
                200,000

              
	
                June
                  [  ], 2010

              	 	
                200,000

              
	
                June
                  [  ], 2011

              	 	
                200,000

              

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      (ii) There
        shall be no proportionate or partial vesting prior to any Vesting
        Date with
        respect to the Shares scheduled to vest on such Vesting Date.

      

      (iii) In
        the
        event of a Change in Control (as defined in the Management Agreement) prior
        to
        June [ ], 2011, all shares of Restricted Stock shall become vested and cease
        to
        be Restricted Stock immediately prior to the consummation of such Change
        in
        Control. Notwithstanding the foregoing, if (w)
        prior
        to the Effective Date (as defined in the Second Amendment to the Management
        Agreement), the Company shall have received a bona fide indication of interest
        in, or offer to enter into, a business combination (an “Offer”)
        from a
        third party, (x) such Offer shall specify, with some degree of particularity,
        the material terms thereof (y) the existence of the Offer is not publicly
        disclosed or confirmed by the Company or such third party prior to the Effective
        Date, and (z) the transaction proposed by such Offer is consummated prior
        to
        November 14, 2008 and the consummation of such transaction constitutes a
        Change
        in Control, then the
        preceding sentence shall not apply and the Committee shall consider in good
        faith, taking into consideration such factors including, but not limited
        to, the
        contributions of ZelnickMedia and its personnel to the Company pursuant to
        the
        Management Agreement and otherwise, and recommend to the independent members
        of
        the Board, a number of shares of Restricted Stock, if any, to become vested
        and
        cease to be Restricted Stock in connection with such Change in Control. The
        independent members of the Board shall consider such recommendation and
        determine in good faith, taking into consideration such factors including,
        but
        not limited to, the contributions of ZelnickMedia and its personnel to the
        Company pursuant to the Management Agreement and otherwise, the number of
        shares
        of Restricted Stock, if any, which shall become vested and cease to be
        Restricted Stock in connection with such Change in Control and the remaining
        shares of Restricted Stock shall be forfeited to the Company without
        compensation other than the repayment of any par value paid by the Participant
        for such Shares (if any).

      

      (iv) When
        any
        Shares of Restricted Stock become vested, the Company shall promptly issue
        and
        deliver, unless the Company is using a book entry or similar method pursuant
        to
        Section 8 of this Agreement, to the Participant a new stock certificate
        registered in the name of the Participant for such Shares without the legend
        set
        forth in Section 4 hereof and deliver to the Participant any related other
        RS
        Property, subject to applicable withholding.

      

      (d) Forfeiture.
        The
        Participant shall forfeit to the Company, without compensation, other than
        repayment of any par value paid by the Participant for such Shares (if any),
        any
        and all Restricted Stock and RS Property the
        termination of the Management Agreement by the Company for Cause or by
ZelnickMedia
        or its assignee without Good Reason. For the avoidance of doubt, any shares
        of
        Common Stock which become vested and cease to be Restricted Stock pursuant
        to
        the terms of Section 3(c) above shall not be subject to forfeiture pursuant
        to
        this Section 3(d).

       

      (e) Taxes.
        The
        Participant shall be solely responsible for all applicable federal, state
        and
        local or foreign taxes the Participant incurs from the grant or vesting of
        the
        Restricted Stock.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (f) Section
        83(b).
        If the
        Participant properly elects (as required by Section 83(b) of the Code) within
        30
        days after the grant of the Restricted Stock to include in gross income for
        federal income tax purposes in the year of issuance the fair market value
        of all
        or a portion of such Shares of Restricted Stock, the Participant shall be
        solely
        responsible for any federal, state or local taxes the Participant incurs
        in
        connection with such election. The Participant acknowledges that it is the
        Participant’s sole responsibility, and not the Company’s, to file timely and
        properly the election under Section 83(b) of the Code and any corresponding
        provisions of state tax laws if the Participant elects to utilize such
        election.

       

      (g) Delivery
        Delay.
        The
        delivery of any certificate representing the Restricted Stock or other RS
        Property may be postponed by the Company for such period as may be required
        for
        it to comply with any applicable federal or state securities law, or any
        national securities exchange listing requirements and the Company is not
        obligated to issue or deliver any securities if, in the opinion of counsel
        for
        the Company, the issuance of such Shares shall constitute a violation by
        the
        Participant or the Company of any provisions of any applicable federal or
        state
        law or of any regulations of any governmental authority or any national
        securities exchange.

       

      4. Legend.
        All
        certificates representing the Restricted Stock shall have endorsed thereon
        the
        following legends:

       

      (a) “The
        anticipation, alienation, attachment, sale, transfer, assignment, pledge,
        encumbrance or charge of the shares of stock represented hereby are subject
        to
        the terms and conditions (including forfeiture) of the Take-Two Interactive
        Software, Inc. (the “Company”) Incentive Stock Plan (as the same may be amended
        or supplemented from time to time, the “Plan”) and an agreement entered into
        between the registered owner and the Company evidencing the award under the
        Plan. Copies of such Plan and agreement are on file at the principal office
        of
        the Company.”

       

      (b) Any
        legend required to be placed thereon by applicable blue sky laws of any
        state.

       

      Notwithstanding
        the foregoing, in no event shall the Company be obligated to issue a certificate
        representing the Restricted Stock prior to the vesting dates set forth
        above.

      

      5. Securities
        Representations.
        The
        Shares are being issued to the Participant and this Agreement is being made
        by
        the Company in reliance upon the following express representations and
        warranties of the Participant.

       

      The
        Participant acknowledges, represents and warrants that:

      

      (a) the
        Participant has been advised that the Participant may be an “affiliate” within
        the meaning of Rule 144 under the Securities Act of 1933, as amended (the
        “Act”)
        and in
        this connection the Company is relying in part on the Participant’s
        representations set forth in this section.

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      (b) If
        the
        Participant is deemed an affiliate within the meaning of Rule 144 of the
        Act,
        the Shares must be held indefinitely unless an exemption from any applicable
        resale restrictions is available or the Company files an additional registration
        statement (or a “re-offer prospectus”) with regard to such Shares and, other
        than pursuant to the Management Agreement, the Company is under no obligation
        to
        register the Shares (or to file a “re-offer prospectus”).

       

      (c) If
        the
        Participant is deemed an affiliate within the meaning of Rule 144 of the
        Act,
        the Participant understands that the exemption from registration under Rule
        144
        will not be available unless (i) a public trading market then exists for
        the
        Common Stock of the Company, (ii) adequate information concerning the Company
        is
        then available to the public, and (iii) other terms and conditions of Rule
        144
        or any exemption therefrom are complied with; and that any sale of the Shares
        may be made only in limited amounts in accordance with such terms and
        conditions.

       

      6. No
        Obligation to Continue Service.
        This
        Agreement is not an agreement of consultancy. This Agreement does not guarantee
        that the Company or its affiliates will retain, or continue to retain, the
        Participant during the entire, or any portion of the, term of this Agreement,
        including but not limited to any period during which the Restricted Stock
        is
        outstanding, nor does it modify in any respect the Company or its affiliate’s
        right to terminate or modify the Participant’s consultancy or
        compensation.

       

      7. Power
        of Attorney.
        The
        Company, its successors and assigns, is hereby appointed the attorney-in-fact,
        with full power of substitution, of the Participant for the purpose of carrying
        out the provisions of this Agreement and taking any action and executing
        any
        instruments which such attorney-in-fact may deem necessary or advisable to
        accomplish the purposes hereof, which appointment as attorney-in-fact is
        irrevocable and coupled with an interest. The Company, as attorney-in-fact
        for
        the Participant, may in the name and stead of the Participant, make and execute
        all conveyances, assignments and transfers of the Restricted Stock, Shares
        and
        property provided for herein, and the Participant hereby ratifies and confirms
        all that the Company, as said attorney-in-fact, shall do by virtue hereof.
        Nevertheless, the Participant shall, if so requested by the Company, execute
        and
        deliver to the Company all such instruments as may, in the judgment of the
        Company, be advisable for the purpose.

       

      8. Uncertificated
        Shares.
        Notwithstanding anything else herein, to the extent permitted under applicable
        law, the Company may, issue the Restricted Stock in the form of uncertificated
        shares. Such uncertificated shares of Restricted Stock shall be credited
        to a
        book entry account maintained by the Company (or its designee) on behalf
        of the
        Participant. If thereafter certificates are issued with respect to the
        uncertificated shares of Restricted Stock, such issuance and delivery of
        certificates shall be in accordance with the applicable terms of this
        Agreement.

       

      9. Provisions
        of Plan Control.
        This
        Agreement is subject to all the terms, conditions and provisions of the Plan,
        including, without limitation, the amendment provisions thereof, and to such
        rules, regulations and interpretations relating to the Plan as may be adopted
        by
        the Committee and as may be in effect from time to time. The Plan is
        incorporated herein by reference. Capitalized terms in this Agreement that
        are
        not otherwise defined shall have the same meaning as set forth in the Plan.
        If
        and to the extent that this Agreement conflicts or is inconsistent with the
        terms, conditions and provisions of the Plan, the Plan shall control, and
        this
        Agreement shall be deemed to be modified accordingly. This Agreement, the
        Plan
        and the Management Agreement contain the entire understanding of the parties
        with respect to the subject matter hereof and supersedes any prior agreements
        between the Company and the Participant with respect to the subject matter
        hereof. 

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      10. Notices.
        Any
        notice or communication given hereunder (each a “Notice”)
        shall
        be in writing and shall be sent by personal delivery, by courier or by United
        States mail (registered or certified mail, postage prepaid and return receipt
        requested), to the appropriate party at the address set forth below:

       

      If
        to the
        Company, to:

      

      Take-Two
        Interactive Software, Inc.

      622
        Broadway

      New
        York,
        New York 10012

      Attention:
        General Counsel

       

      If
        to the
        Participant, to:

      

      or
        such
        other address or to the attention of such other person as a party shall have
        specified by prior Notice to the other party. Each Notice will be deemed
        given
        and effective upon actual receipt (or refusal of receipt).

       

      11. Governing
        Law.
        All
        questions concerning the construction, validity and interpretation of this
        Agreement will be governed by, and construed in accordance with, the domestic
        laws of the State of Delaware, without giving effect to any choice of law
        or
        conflict of law provision or rule (whether of the State of Delaware or any
        other
        jurisdiction) that would cause the application of the laws of any jurisdiction
        other than the State of Delaware.

       

      12. Consent
        to Jurisdiction.
        In the
        event of any dispute, controversy or claim between the Company or any affiliate
        and the Participant in any way concerning, arising out of or relating to
        the
        Plan or this Agreement (a “Dispute”),
        including without limitation any Dispute concerning, arising out of or relating
        to the interpretation, application or enforcement of the Plan or this Agreement,
        the parties hereby (a) agree and consent to the personal jurisdiction of
        the
        courts of the State of New York located in New York County and/or the Federal
        courts of the United States of America located in the Southern District of
        New
        York (collectively, the “Agreed
        Venue”)
        for
        resolution of any such Dispute, (b) agree that those courts in the Agreed
        Venue,
        and only those courts, shall have exclusive jurisdiction to determine any
        Dispute, including any appeal, and (c) agree that any cause of action arising
        out of this Agreement shall be deemed to have arisen from a transaction of
        business in the State of New York. The parties also hereby irrevocably (i)
        submit to the jurisdiction of any competent court in the Agreed Venue (and
        of
        the appropriate appellate courts therefrom), (ii) to the fullest extent
        permitted by law, waive any and all defenses the parties may have on the
        grounds
        of lack of jurisdiction of any such court and any other objection that such
        parties may now or hereafter have to the laying of the venue of any such
        suit,
        action or proceeding in any such court (including without limitation any
        defense
        that any such suit, action or proceeding brought in any such court has been
        brought in an inconvenient forum), and (iii) consent to service of process
        in
        any such suit, action or proceeding, anywhere in the world, whether within
        or
        without the jurisdiction of any such court, in any manner provided by applicable
        law. Without limiting the foregoing, each party agrees that service of process
        on such party pursuant to a Notice as provided in Section 11 hereof shall
        be
        deemed effective service of process on such party. Any action for enforcement
        or
        recognition of any judgment obtained in connection with a Dispute may be
        enforced in any competent court in the Agreed Venue or in any other court
        of
        competent jurisdiction.

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      13. Counterparts.
        This
        Agreement may be executed (including by facsimile transmission) with counterpart
        signature pages or in separate counterparts each of which shall be an original
        and all of which taken together shall constitute one and the same
        agreement.

       

      14. Miscellaneous.

       

      (a) This
        Agreement shall inure to the benefit of and be binding upon the parties hereto
        and their respective heirs, legal representatives, successors and
        assigns.

       

      (b) In
        the
        event of any stock split, subdivision, dividend or distribution payable in
        shares of Common Stock (or other securities or rights convertible into, or
        entitling the holder thereof to receive directly or indirectly shares of
        Common
        Stock), combination or other similar recapitalization or event occurring
        after
        the date hereof, each reference in this Agreement to a number of shares shall
        be
        amended to appropriately account for such event.

       

      (c) The
        failure of any party hereto at any time to require performance by another
        party
        of any provision of this Agreement shall not affect the right of such party
        to
        require performance of that provision, and any waiver by any party of any
        breach
        of any provision of this Agreement shall not be construed as a waiver of
        any
        continuing or succeeding breach of such provision, a waiver of the provision
        itself, or a waiver of any right under this Agreement.

       

      [End
        of
        text. Signature page follows.]

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        the
        parties have executed this Agreement on the date and year first above
        written.

       

      
        	
                COMPANY:

              
	 
	
                TAKE-TWO
                  INTERACTIVE SOFTWARE, INC.

              
	 	 
	
                By:

              	
                 

              
	
                Name:

              	 
	
                Title:

              	 

      

      

      
        	
                PARTICIPANT:

              
	 
	
                
                  [ZELNICKMEDIA
                    CORPORATION]

                

              
	 	 
	
                By:

              	
                 

              
	
                Name:

              	 
	
                Title:

              	 
	
                [Taxpayer
                  Identification Number]

              

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      
        EXHIBIT
          B

        

        PERFORMANCE
          BASED RESTRICTED STOCK AGREEMENT

        PURSUANT
          TO THE

        TAKE-TWO
          INTERACTIVE SOFTWARE, INC.

        INCENTIVE
          STOCK PLAN

        

        This
          Performance Based Restricted Stock Agreement (this “Agreement”),
          dated
          June [ ], 2008 (the “Grant
          Date”),
          is
          made by and between Take-Two Interactive Software, Inc. (the “Company”)
          and
          [                           ]
          (the “Participant”).

        

        WITNESSETH:

        

        WHEREAS,
          the
          Company has adopted the Take-Two Interactive Software, Inc. Incentive Stock
          Plan, as amended through the date hereof (the “Plan”),
          which
          is administered by the Compensation Committee (the “Committee”)
          of the
          Company’s Board of Directors;

        

        WHEREAS,
          pursuant
          to Section 7 of the Plan, the Committee may grant to Consultants shares
          of its
          common stock, par value $0.01 per share (“Common
          Stock”);

        

        WHEREAS,
          pursuant
          to the Management Agreement between ZelnickMedia Corporation (“ZelnickMedia”)
          and
          the Company, dated as of March 30, 2007, as amended on July 26, 2007 and
          February 14, 2008 (the “Management
          Agreement”),
          the
          Company agreed to issue to ZelnickMedia or one its designated affiliates,
          and
          the Committee has approved the grant of, the Common Stock set forth herein;
          and

        

        WHEREAS,
          such
          shares of Common Stock granted to the Participant hereunder are to be subject
          to
          certain restrictions prior to and following the vesting thereof.

        

        NOW,
          THEREFORE,
          for and
          in consideration of the mutual promises herein contained, and for other
          good and
          valuable consideration, the receipt and sufficiency of which are hereby
          acknowledged, the parties agree as follows:

        

        1. Grant
          of Shares.
          Subject
          to the restrictions, terms and conditions of this Agreement, the Company
          hereby
          awards, effective as of the date hereof, to the Participant Nine Hundred
          Thousand (900,000) shares of duly authorized, validly issued, fully paid
          and
          non-assessable Common Stock (the “Shares”).
          Pursuant to Sections 2(a), 3(c) and 3(d) hereof, the Shares are subject
          to
          certain transfer restrictions and possible risk of forfeiture. While such
          restrictions are in effect, the Shares subject to such restrictions shall
          be
          referred to herein as “Restricted
          Stock.”

         

        2. Restrictions
          on Transfer. 

         

        (a) Restricted
          Stock.
          The
          Participant shall not sell, transfer, pledge, hypothecate, assign or otherwise
          dispose of the Restricted Stock, except as set forth in the Plan or this
          Agreement. Any attempted sale, transfer, pledge, hypothecation, assignment
          or
          other disposition of the Restricted Stock in violation of the Plan or this
          Agreement shall be void and of no effect and the Company shall have the
          right to
          disregard the same on its books and records and to issue “stop transfer”
instructions to its transfer agent. Restricted Stock shall be transferable
          to
          any affiliate of the Participant, in whole or in part, provided that such
          Shares
          shall remain subject to the terms of this Agreement and each transferee
          agrees
          in writing to take such Shares subject to and to comply with the restrictions
          on
          transfer contained in this Agreement.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        (b) Common
          Stock.
          Until
          October 31, 2012 or earlier if the Management Agreement is earlier terminated
          in
          accordance with its terms, the Participant shall not sell or otherwise
          dispose
          (other than to an affiliate or employee of the Participant) of any shares
          of
          Common Stock acquired hereunder and the preceding restriction shall not
          be
          waivable by the Company without the approval of stockholders holding a
          majority
          of the Company’s outstanding voting securities at the time such approval is
          given; provided,
          however,
          that
          the foregoing shall not limit the right of the Participant and/or any
          Permitted Transferee (as defined below)
          to sell
          or otherwise dispose of that number of shares of Common Stock necessary
          to
          satisfy any taxes imposed on the Participant, its shareholders, its affiliates
          and/or its members or partners, or
          Permitted Transferees,
          as a
          result of the vesting of the shares of Restricted Stock hereunder or in
          connection with the transfer of shares by the Participant to such Permitted
          Transferee;
          provided, further, that in
          connection with any transfer of shares by the Participant to Permitted
          Transferee, each such
          transferee agrees in writing to take such Shares subject to and comply
          with the
          restrictions on transfer contained in this Agreement.
          For
          purposes of this Agreement, “Permitted
          Transferee”
shall
          mean (i) an affiliate or employee of the Participant, (ii) any transfer
          for
          estate planning purposes to or for the benefit of any spouse, child or
          grandchild of an employee of the Participant or its affiliates, or (iii)
          any
          trust or partnership for the benefit of any of the foregoing individuals,
          including transfers by will or the laws of descent and
          distribution.

        

        3. Restricted
          Stock.

         

        (a) Retention
          of Certificates.
          Promptly
          after the date of this Agreement, the Company shall issue stock certificates
          representing the Restricted Stock unless it elects to recognize such ownership
          through book entry or another similar method pursuant to Section 8 herein.
          The
          stock certificates shall be registered in the Participant’s name and shall bear
          any legend required under the Plan or Section 4 hereof. Unless held in
          book
          entry form, such stock certificates shall be held in custody by the Company
          (or
          its designated agent) until the restrictions thereon shall have lapsed.
          The
          Participant shall deliver to the Company a duly signed stock power, endorsed
          in
          blank, relating to the Restricted Stock; provided,
          that such stock power shall provide that it may only be used to effect
          a
          transfer back to the Company upon the forfeiture by the Participant of
          the
          Restricted Stock in accordance with the provisions of this Agreement.
          If the
          Participant receives a stock dividend or extraordinary cash dividend on
          the
          Restricted Stock or the Restricted Stock is split or the Participant receives
          any other shares, securities, moneys or property representing a dividend
          on the
          Restricted Stock (other than regular cash dividends and other cash equivalent
          distributions on and after the date of this Agreement) or representing
          a
          distribution or return of capital upon or in respect of the Restricted
          Stock or
          any part thereof, or resulting from a split-up, reclassification or other
          like
          changes of the Restricted Stock, or otherwise received in exchange therefor,
          and
          any warrants, rights or options issued to the Participant in respect of
          the
          Restricted Stock (collectively “RS
          Property”),
          the
          Participant will also immediately deposit with and deliver to the Company
          any of
          such RS Property, including any certificates representing shares duly endorsed
          in blank or accompanied by stock powers duly executed in blank (provided,
          that
          such stock powers shall provide that they may only be used to effect a
          transfer
          back to the Company upon the forfeiture by the Participant of such RS Property
          in accordance with the provisions of this Agreement), and such RS Property
          shall
          be subject to the same restrictions, including that of this Section 3(a),
          as the
          Restricted Stock with regard to which they are issued and shall herein
          be
          encompassed within the term “Restricted Stock.”

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        (b) Rights
          with Regard to Restricted Stock.
          The
          Participant will have the right to vote the Restricted Stock, to receive
          and
          retain any regular cash dividends and other cash equivalent distributions
          (but
          not any dividends that constitute RS Property) payable to holders of Common
          Stock of record on and after the transfer of the Restricted Stock (although
          such
          dividends shall be treated, to the extent required by applicable law, as
          additional compensation for tax purposes if paid on Restricted Stock and
          any
          dividends that constitute RS Property will be subject to the restrictions
          provided herein), and to exercise all other rights, powers and privileges
          of a
          holder of Common Stock with respect to the Restricted Stock set forth in
          the
          Plan,
          including the right to tender the Restricted Stock (although the consideration
          received in respect thereof shall be treated as “Restricted Stock”
hereunder),
          with
          the exceptions that: (i) the Participant will not be entitled to delivery
          of the
          stock certificate or certificates representing the Restricted Stock until
          the
          Restriction Period shall have expired; (ii) the Company (or its designated
          agent) will retain custody of the stock certificate or certificates representing
          the Restricted Stock and the other RS Property during the Restriction Period;
          (iii) no RS Property shall bear interest or be segregated in separate accounts
          during the Restriction Period; and (iv) the Participant may not sell, assign,
          transfer, pledge, hypothecate, exchange, encumber or otherwise dispose
          of the RS
          Property during the Restriction Period except
          as
          otherwise permitted under the Plan or this Agreement.

         

        (c) Vesting.

         

        (i) The
          Restricted Stock shall become vested and cease to be Restricted Stock (but
          shall
          remain subject to the other terms of this Agreement and the Plan) based
          on the
          achievement of the performance goal described on Annex A attached hereto;
          provided,
          that
          the Management Agreement shall not have been terminated (other than a
          termination by ZelnickMedia or its assignee with Good Reason (as defined
          in the
          Management Agreement) or by the Company without Cause (as defined in the
          Management Agreement)) (a “Termination”)
          prior
          to the achievement of the performance goal described on Annex A; provided,
          further,
          that
          any shares of Restricted Stock that do not vest on or prior to June [ ],
          2012
          shall be forfeited and shall revert back to the Company without any payment
          to
          the Participant, and the Participant shall thereafter have no rights with
          respect to such shares of Restricted Stock; provided,
          further,
          that
          all shares of Restricted Stock shall immediately vest in the event the
          Management Agreement is terminated by the Company without Cause or by
          ZelnickMedia or its assignee for Good Reason.

         

        (ii) In
          the
          event of a Change in Control (as defined in the Management Agreement),
          then the
          Restricted Stock shall vest or be forfeited as follows:

        

        (A)
          If a
          Change in Control occurs on or prior to March 31, 2009, then (x) 180,000
          shares
          of Restricted Stock shall become vested and cease to be Restricted Stock
          immediately prior to the consummation of such Change in Control, and (y)
          the
          Committee shall consider in good faith, taking into consideration such
          factors
          including, but not limited to, the contributions of ZelnickMedia and its
          personnel to the Company pursuant to the Management Agreement and otherwise,
          and
          recommend to the independent members of the Board a number of shares of
          Restricted Stock, if any, to become vested and cease to be Restricted Stock
          in
          connection with such Change in Control. The independent members of the
          Board
          shall consider such recommendation and determine in good faith, taking
          into
          consideration such factors including, but not limited to, the contributions
          of
          ZelnickMedia and its personnel to the Company pursuant to the Management
          Agreement and otherwise, the number of additional shares of Restricted
          Stock, if
          any, which shall become vested and cease to be Restricted Stock in connection
          with such Change in Control. Any remaining shares of Restricted Stock shall
          be
          forfeited to the Company without compensation other than the repayment
          of any
          par value paid by the Participant for such Shares (if any).

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        (B)
          Notwithstanding anything to the contrary in clause (A) of this Section
          3(c)(ii),
          if (w)
          prior
          to the Effective Date (as defined in the Second Amendment to the Management
          Agreement), the Company shall have received a bona
          fide
          indication of interest in, or offer to enter into, a business combination
          (an
“Offer”)
          from a
          third party, (x) such Offer shall specify, with some degree of particularity,
          the material terms thereof, (y) the existence of the Offer is not publicly
          disclosed or confirmed by the Company or such third party prior to the
          Effective
          Date, and (z)
          the
          transaction proposed by such Offer is consummated prior to November 14,
          2008 and
          the consummation of such transaction constitutes a Change in Control, then
          Section 3(c)(ii)(A) shall not apply and the Committee shall consider in
          good
          faith, taking into consideration such factors including, but not limited
          to, the
          contributions of ZelnickMedia and its personnel to the Company pursuant
          to the
          Management Agreement and otherwise, and recommend to the independent members
          of
          the Board a number of shares of Restricted Stock, if any, to become vested
          and
          cease to be Restricted Stock in connection with such Change in Control.
          The
          independent members of the Board shall consider such recommendation and
          determine in good faith, taking into consideration such factors including,
          but
          not limited to, the contributions of ZelnickMedia and its personnel to
          the
          Company pursuant to the Management Agreement and otherwise, the number
          of shares
          of Restricted Stock, if any, which shall become vested and cease to be
          Restricted Stock in connection with such Change in Control and the remaining
          shares of Restricted Stock shall be forfeited to the Company without
          compensation other than the repayment of any par value paid by the Participant
          for such Shares (if any).

        

        (C) If
          a
          Change in Control occurs on or following April 1, 2009, all shares of Restricted
          Stock shall become vested and cease to be Restricted Stock immediately
          prior to
          the consummation of such Change in Control.

        

        (iii) When
          any
          Shares of Restricted Stock become vested, the Company shall promptly issue
          and
          deliver, unless the Company is using a book entry or similar method pursuant
          to
          Section 8 of this Agreement, to the Participant a new stock certificate
          registered in the name of the Participant for such Shares without the legend
          set
          forth in Section 4 hereof and deliver to the Participant any related other
          RS
          Property, subject to applicable withholding.

        

        (d) Forfeiture.
          The
          Participant shall forfeit to the Company, without compensation, other than
          repayment of any par value paid by the Participant for such Shares (if
          any), any
          and all Restricted Stock and RS Property upon the termination of the Management
          Agreement by the Company for Cause or by ZelnickMedia or its assignee without
          Good Reason. For the avoidance of doubt, any shares of Common Stock which
          become
          vested and cease to be Restricted Stock pursuant to the terms of Section
          3(c)
          above shall not be subject to forfeiture pursuant to this Section
          3(d).

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        (e) Taxes.
          The
          Participant shall be solely responsible for all applicable federal, state
          and
          local or foreign taxes the Participant incurs from the grant or vesting
          of the
          Restricted Stock.

         

        (f) Section
          83(b).
          If the
          Participant properly elects (as required by Section 83(b) of the Code)
          within 30
          days after the grant of the Restricted Stock to include in gross income
          for
          federal income tax purposes in the year of issuance the fair market value
          of all
          or a portion of such Shares of Restricted Stock, the Participant shall
          be solely
          responsible for any federal, state or local taxes the Participant incurs
          in
          connection with such election. The Participant acknowledges that it is
          the
          Participant’s sole responsibility, and not the Company’s, to file timely and
          properly the election under Section 83(b) of the Code and any corresponding
          provisions of state tax laws if the Participant elects to utilize such
          election.

         

        (g) Delivery
          Delay.
          The
          delivery of any certificate representing the Restricted Stock or other
          RS
          Property may be postponed by the Company for such period as may be required
          for
          it to comply with any applicable federal or state securities law, or any
          national securities exchange listing requirements and the Company is not
          obligated to issue or deliver any securities if, in the opinion of counsel
          for
          the Company, the issuance of such Shares shall constitute a violation by
          the
          Participant or the Company of any provisions of any applicable federal
          or state
          law or of any regulations of any governmental authority or any national
          securities exchange.

         

        4. Legend.
          All
          certificates representing the Restricted Stock shall have endorsed thereon
          the
          following legends:

         

        (a) “The
          anticipation, alienation, attachment, sale, transfer, assignment, pledge,
          encumbrance or charge of the shares of stock represented hereby are subject
          to
          the terms and conditions (including forfeiture) of the Take-Two Interactive
          Software, Inc. (the “Company”) Incentive Stock Plan (as the same may be amended
          or supplemented from time to time, the “Plan”) and an agreement entered into
          between the registered owner and the Company evidencing the award under
          the
          Plan. Copies of such Plan and agreement are on file at the principal office
          of
          the Company.”

         

        (b) Any
          legend required to be placed thereon by applicable blue sky laws of any
          state.

         

        Notwithstanding
          the foregoing, in no event shall the Company be obligated to issue a certificate
          representing the Restricted Stock prior to the vesting dates set forth
          above.

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

        5. Securities
          Representations.
          The
          Shares are being issued to the Participant and this Agreement is being
          made by
          the Company in reliance upon the following express representations and
          warranties of the Participant.

         

        The
          Participant acknowledges, represents and warrants that:

        

        (a) the
          Participant has been advised that the Participant may be an “affiliate” within
          the meaning of Rule 144 under the Securities Act of 1933, as amended (the
          “Act”)
          and in
          this connection the Company is relying in part on the Participant’s
          representations set forth in this section.

         

        (b) If
          the
          Participant is deemed an affiliate within the meaning of Rule 144 of the
          Act,
          the Shares must be held indefinitely unless an exemption from any applicable
          resale restrictions is available or the Company files an additional registration
          statement (or a “re-offer prospectus”) with regard to such Shares and, other
          than pursuant to the Management Agreement, the Company is under no obligation
          to
          register the Shares (or to file a “re-offer prospectus”).

         

        (c) If
          the
          Participant is deemed an affiliate within the meaning of Rule 144 of the
          Act,
          the Participant understands that the exemption from registration under
          Rule 144
          will not be available unless (i) a public trading market then exists for
          the
          Common Stock of the Company, (ii) adequate information concerning the Company
          is
          then available to the public, and (iii) other terms and conditions of Rule
          144
          or any exemption therefrom are complied with; and that any sale of the
          Shares
          may be made only in limited amounts in accordance with such terms and
          conditions.

         

        6. No
          Obligation to Continue Service.
          This
          Agreement is not an agreement of consultancy. This Agreement does not guarantee
          that the Company or its affiliates will retain, or continue to retain,
          the
          Participant during the entire, or any portion of the, term of this Agreement,
          including but not limited to any period during which the Restricted Stock
          is
          outstanding, nor does it modify in any respect the Company or its affiliate’s
          right to terminate or modify the Participant’s consultancy or
          compensation.

         

        7. Power
          of Attorney.
          The
          Company, its successors and assigns, is hereby appointed the attorney-in-fact,
          with full power of substitution, of the Participant for the purpose of
          carrying
          out the provisions of this Agreement and taking any action and executing
          any
          instruments which such attorney-in-fact may deem necessary or advisable
          to
          accomplish the purposes hereof, which appointment as attorney-in-fact is
          irrevocable and coupled with an interest. The Company, as attorney-in-fact
          for
          the Participant, may in the name and stead of the Participant, make and
          execute
          all conveyances, assignments and transfers of the Restricted Stock, Shares
          and
          property provided for herein, and the Participant hereby ratifies and confirms
          all that the Company, as said attorney-in-fact, shall do by virtue hereof.
          Nevertheless, the Participant shall, if so requested by the Company, execute
          and
          deliver to the Company all such instruments as may, in the judgment of
          the
          Company, be advisable for the purpose.

         

        8. Uncertificated
          Shares.
          Notwithstanding anything else herein, to the extent permitted under applicable
          law, the Company may, issue the Restricted Stock in the form of uncertificated
          shares. Such uncertificated shares of Restricted Stock shall be credited
          to a
          book entry account maintained by the Company (or its designee) on behalf
          of the
          Participant. If thereafter certificates are issued with respect to the
          uncertificated shares of Restricted Stock, such issuance and delivery of
          certificates shall be in accordance with the applicable terms of this
          Agreement.

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        9. Provisions
          of Plan Control.
          This
          Agreement is subject to all the terms, conditions and provisions of the
          Plan,
          including, without limitation, the amendment provisions thereof, and to
          such
          rules, regulations and interpretations relating to the Plan as may be adopted
          by
          the Committee and as may be in effect from time to time. The Plan is
          incorporated herein by reference. Capitalized terms in this Agreement that
          are
          not otherwise defined shall have the same meaning as set forth in the Plan.
          If
          and to the extent that this Agreement conflicts or is inconsistent with
          the
          terms, conditions and provisions of the Plan, the Plan shall control, and
          this
          Agreement shall be deemed to be modified accordingly. This Agreement, the
          Plan
          and the Management Agreement contain the entire understanding of the parties
          with respect to the subject matter hereof and supersedes any prior agreements
          between the Company and the Participant with respect to the subject matter
          hereof. 

         

        10. Notices.
          Any
          notice or communication given hereunder (each a “Notice”)
          shall
          be in writing and shall be sent by personal delivery, by courier or by
          United
          States mail (registered or certified mail, postage prepaid and return receipt
          requested), to the appropriate party at the address set forth below:

         

        If
          to the
          Company, to:

        

        Take-Two
          Interactive Software, Inc.

        622
          Broadway

        New
          York,
          New York 10012

        Attention:
          General Counsel

         

        If
          to the
          Participant, to:

        

        or
          such
          other address or to the attention of such other person as a party shall
          have
          specified by prior Notice to the other party. Each Notice will be deemed
          given
          and effective upon actual receipt (or refusal of receipt).

         

        11. Governing
          Law.
          All
          questions concerning the construction, validity and interpretation of this
          Agreement will be governed by, and construed in accordance with, the domestic
          laws of the State of Delaware, without giving effect to any choice of law
          or
          conflict of law provision or rule (whether of the State of Delaware or
          any other
          jurisdiction) that would cause the application of the laws of any jurisdiction
          other than the State of Delaware.

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

        12. Consent
          to Jurisdiction.
          In the
          event of any dispute, controversy or claim between the Company or any affiliate
          and the Participant in any way concerning, arising out of or relating to
          the
          Plan or this Agreement (a “Dispute”),
          including without limitation any Dispute concerning, arising out of or
          relating
          to the interpretation, application or enforcement of the Plan or this Agreement,
          the parties hereby (a) agree and consent to the personal jurisdiction of
          the
          courts of the State of New York located in New York County and/or the Federal
          courts of the United States of America located in the Southern District
          of New
          York (collectively, the “Agreed
          Venue”)
          for
          resolution of any such Dispute, (b) agree that those courts in the Agreed
          Venue,
          and only those courts, shall have exclusive jurisdiction to determine any
          Dispute, including any appeal, and (c) agree that any cause of action arising
          out of this Agreement shall be deemed to have arisen from a transaction
          of
          business in the State of New York. The parties also hereby irrevocably
          (i)
          submit to the jurisdiction of any competent court in the Agreed Venue (and
          of
          the appropriate appellate courts therefrom), (ii) to the fullest extent
          permitted by law, waive any and all defenses the parties may have on the
          grounds
          of lack of jurisdiction of any such court and any other objection that
          such
          parties may now or hereafter have to the laying of the venue of any such
          suit,
          action or proceeding in any such court (including without limitation any
          defense
          that any such suit, action or proceeding brought in any such court has
          been
          brought in an inconvenient forum), and (iii) consent to service of process
          in
          any such suit, action or proceeding, anywhere in the world, whether within
          or
          without the jurisdiction of any such court, in any manner provided by applicable
          law. Without limiting the foregoing, each party agrees that service of
          process
          on such party pursuant to a Notice as provided in Section 11 hereof shall
          be
          deemed effective service of process on such party. Any action for enforcement
          or
          recognition of any judgment obtained in connection with a Dispute may be
          enforced in any competent court in the Agreed Venue or in any other court
          of
          competent jurisdiction.

         

        13. Counterparts.
          This
          Agreement may be executed (including by facsimile transmission) with counterpart
          signature pages or in separate counterparts each of which shall be an original
          and all of which taken together shall constitute one and the same
          agreement.

         

        14. Miscellaneous.

         

        (a) This
          Agreement shall inure to the benefit of and be binding upon the parties
          hereto
          and their respective heirs, legal representatives, successors and
          assigns.

         

        (b) In
          the
          event of any stock split, subdivision, dividend or distribution payable
          in
          shares of Common Stock (or other securities or rights convertible into,
          or
          entitling the holder thereof to receive directly or indirectly shares of
          Common
          Stock), combination or other similar recapitalization or event occurring
          after
          the date hereof, each reference in this Agreement to a number of shares
          or a
          price per share shall be amended to appropriately account for such
          event.

         

        (c) The
          failure of any party hereto at any time to require performance by another
          party
          of any provision of this Agreement shall not affect the right of such party
          to
          require performance of that provision, and any waiver by any party of any
          breach
          of any provision of this Agreement shall not be construed as a waiver of
          any
          continuing or succeeding breach of such provision, a waiver of the provision
          itself, or a waiver of any right under this Agreement.

         

        [End
          of
          text. Signature page follows.]

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF,
          the
          parties have executed this Agreement on the date and year first above
          written.

         

        
          	
                  COMPANY:

                
	 
	
                  TAKE-TWO
                    INTERACTIVE SOFTWARE, INC.

                
	 	 
	
                  By:

                	 

	
                  Name:

                
	
                  Title:

                

        

         

         

        
          	
                  PARTICIPANT:

                
	 
	
                  
                    [ZELNICKMEDIA
                      CORPORATION]

                  

                
	 	 
	
                  By:

                	 

	
                  Name:

                
	
                  Title:

                
	
                  [Taxpayer
                    Identification Number]

                

        

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

        Annex
          A

        

        Vesting

        

        

        A.
          Vesting.

        

        The
          Restricted Stock shall become vested and cease to be Restricted Stock (but
          shall
          remain subject to the other terms of this Agreement and the Plan) in the
          amounts
          set forth opposite the Vesting Dates listed in the table below; provided,
          that
          with respect to each tranche, the Committee has determined that the applicable
          Measurement Price (as defined below) with respect to the Common Stock on
          the
          trading date immediately preceding the applicable Vesting Date (each a
          “Measurement
          Date”)
          achieves a Percentile Rank (as defined below) of 75% or higher with respect
          to
          Total Shareholder Return (as defined below) relative to the Peer Group
          (as
          defined below) for the period from the Grant Date though the applicable
          Measurement Date:

        

        
          	
                  Vesting
                    Date

                	 	
                  Shares Eligible to Vest

                	 
	 	 	 	 
	
                  June
                    [ ], 2009

                	 	 	
                  180,000

                	 
	
                  June
                    [ ], 2010

                	 	 	
                  270,000

                	 
	
                  June
                    [ ], 2011

                	 	 	
                  405,000

                	 
	
                  June
                    [ ], 2012

                	 	 	
                  45,000

                	 

        

        

        There
          shall be no proportionate or partial vesting prior to any Vesting Date
          with
          respect to the Shares scheduled to vest on such Vesting Date or
          the
          achievement of any Percentile Rank with respect to Total Shareholder Return
          prior to the applicable Measurement Date.

        

        B.
          Catch-Up;
          Forfeiture.
          

        

        In
          the
          event that the Company does not achieve
          a
          Percentile Rank of 75% or higher with respect to Total Shareholder Return
          relative to the Peer Group as of a Measurement Date, the
          Shares of Restricted Stock that otherwise would have vested on the applicable
          Vesting Date shall nevertheless vest as of any succeeding Vesting Date
          if the
          Company achieves
          a
          Percentile Rank of 75% or higher with respect to Total Shareholder Return
          relative to the Peer Group as of the Measurement Date applicable to such
          succeeding Vesting Date.
          Any
          Shares of Restricted Stock that have not vested as
          of
          final
          Vesting
          Date
          shall
          automatically be forfeited and shall revert back to
          the
          Company without compensation to the Participant, other than the repayment
          of any
          par value paid by the Participant for such Shares (if any).

        

        C.
          Definitions.

         

        “Base
          Price”
means
          the average closing price of the Common Stock or the common stock of a
          Peer
          Group company, as applicable, for each trading day during the 90 day period
          ending on the day immediately prior to the Grant Date.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        “Measurement
          Price”
means
          with respect to a Vesting Date, the average closing price of the Common
          Stock or
          the common stock of a Peer Group company, as applicable, for each of the
          10
          trading days ending on (and including) the applicable Measurement
          Date.

        

        The
          “Peer
          Group”
shall
          consist of the companies that comprise The NASDAQ Industrial Index on the
          applicable Measurement Date.

        

        The
          “Percentile
          Rank”
of
          a
          given company’s Total Shareholder Return is defined as the percentage of the
          Peer Group companies’ returns falling at or below the company’s Total
          Shareholder Return. The formula for calculating the Percentile Rank is
          as
          follows:

        

        Percentile
          Rank = (N-R+1)/N * 100

        

        Where:

        

        
          	
                  N
                    =

                	
                  total
                    number of companies in the Peer Group

                
	 	 
	
                  R
                    =

                	
                  the
                    numeric rank of the Company’s Total Shareholder Return relative to the
                    Peer Group, where the highest Total Shareholder Return in the Peer Group
                    is ranked number 1

                

        

        

        The
          Percentile Rank shall be rounded to the nearest whole percentage, with
          (.5)
          rounded up.

        

        To
          illustrate, if the Company’s Total Shareholder Return is the 25th
          highest
          in a Peer Group comprised of 100 companies, its Percentile Rank would be
          76. The
          calculation is: (100 - 25 + 1)/100 x 100 =76.

        

        “Total
          Shareholder Return”
means
          the percentage change in the value of the Common Stock or the common stock
          of a
          Peer Group company, as applicable, from the Base Price to the Measurement
          Price
          on the applicable Measurement Date.

        
          
            
            

          

          
            2Unassociated Document

    EMPLOYMENT
      AGREEMENT

     

    THIS
      EMPLOYMENT AGREEMENT (this “Agreement”)
      is
      entered into on February 14, 2008 (the “Signing
      Date”),
      by
      and between Take-Two Interactive Software, Inc., a Delaware corporation (the
      “Company”),
      and
      Benjamin Feder (the “Employee”).

     

    WITNESSETH:

     

    WHEREAS,
      the Company is a party to that certain Management Agreement, dated as of March
      30, 2007, by and between the Company and ZelnickMedia Corporation (“ZelnickMedia”),
      as
      amended on July 26, 2007 and on February 14, 2008 (as further amended from
      time
      to time following the Signing Date, the “Management
      Agreement”);

     

    WHEREAS,
      the Employee is currently a principal of ZelnickMedia and has been serving
      as
      the Chief Executive Officer of the Company on an interim basis;

     

    WHEREAS,
      simultaneously with the execution of this Agreement, the Company and
      ZelnickMedia are entering into the Second Amendment to Management Agreement
      (the
“Second
      Amendment”),
      pursuant to which ZelnickMedia is agreeing to make the Employee available to
      serve as the Chief Executive Officer of the Company under the terms and
      conditions of this Agreement which sets forth the duties of such position and
      provides for an annual salary of $1.00;

     

    WHEREAS,
      the Company desires to continue to employ the Employee as its Chief Executive
      Officer during the Term (as defined herein) on the terms and conditions
      hereinafter set forth; and

     

    WHEREAS,
      the Employee is willing to accept such employment on such terms and
      conditions.

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements hereinafter
      set forth, and intending to be legally bound hereby, the Company and the
      Employee hereby agree as follows:

     

    1. Term.
      The
      Company hereby agrees to continue to employ the Employee, and the Employee
      hereby agrees to continue to serve the Company, for a period commencing on
      the
      Signing Date and, unless earlier terminated pursuant to the next sentence or
      Section 6 below, ending on the date of termination of the Management Agreement
      (such period being herein referred to as the “Term”).
      

     

    2. Employee
      Duties.

     

    (a) During
      the Term, the Employee shall serve as the Chief Executive Officer of the Company
      and have the duties and responsibilities customarily associated with such
      position in a company the size and nature of the Company. Employee shall report
      directly to the Chairman of the Board of Directors of the Company (the
“Board”),
      as
      well as the entire Board.

     

    (b)
      The
      Employee shall devote such amount of his business time, attention, knowledge
      and
      skills as are necessary to faithfully, diligently and to the best of his ability
      perform his duties hereunder in furtherance of the business and activities
      of
      the Company. The principal place of performance by the Employee of his duties
      hereunder shall be the Company’s principal executive offices in New York, New
      York, although the Employee may be required from time to time to travel outside
      of the area where the Company’s principal executive offices are located in
      connection with the business of the Company. Notwithstanding the foregoing,
      nothing in this Agreement shall prevent the Employee from continuing in his
      position as a principal of ZelnickMedia and its affiliates; provided that such
      activities do not materially interfere with Employee’s duties and
      responsibilities under this Agreement or
      create
      a material conflict of interest with the business of the Company.
      The
      Employee hereby acknowledges and agrees that the Company shall have no
      obligation to pay or provide the Employee any amounts or benefits beyond the
      amounts and benefits set forth in Sections 3, 4 and 5 below, and that the
      compensation and benefits provided to the Employee by ZelnickMedia in connection
      with his duties as a principal thereof provide good
      and
      valuable consideration for the performance of his duties under this
      Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. Compensation.
      During
      the Term, the Company shall pay the Employee a salary (the “Salary”)
      at a
      rate of $1.00 per annum, payable on the last day of each fiscal year of the
      Company. The Employee shall not be entitled to receive an annual bonus from
      the
      Company.

     

    4. Benefits.

     

    (a) During
      the Term, the Employee shall have the right to receive or participate in all
      benefits and plans which the Company may from time to time institute during
      such
      period for its executive officers and for its employees in general and for
      which
      the Employee is eligible (including the Company’s Medical Expenses Reimbursement
      Plan). Nothing paid to the Employee under any plan or arrangement presently
      in
      effect or made available in the future shall be deemed to be in lieu of the
      salary or any other obligation payable to the Employee pursuant to this
      Agreement. 

     

    (b) During
      the Term, the Employee will be entitled to the number of paid holidays, personal
      days off, vacation days and sick leave days in each calendar year as are
      determined by the Company from time to time (provided that in no event shall
      vacation time be fewer than four weeks per year). Such vacation may be taken
      in
      the Employee’s discretion at such time or times as are not inconsistent with the
      reasonable business needs of the Company.

     

    5. Travel
      Expenses.
      All
      travel and other expenses incident to the rendering of services reasonably
      incurred on behalf of the Company by the Employee during the Term shall be
      paid
      by the Company. If any such expenses are paid in the first instance by the
      Employee, the Company shall promptly reimburse him therefor on presentation
      of
      appropriate receipts for any such expenses. All travel and lodging arrangements
      shall be made in accordance with Company’s regular policies and the Management
      Agreement.

     

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    

    6. Termination.
      Notwithstanding the provisions of Section 1 hereof, the Employee’s
      employment with the Company may be earlier terminated as follows:

     

    (a) By
      action
      taken by the Board or the Chairman of the Company, the Employee may be
      discharged for any reason or no reason effective as of such time as the Board
      shall determine. Upon discharge of the Employee pursuant to this
      Section 6(a), the Company shall have no further obligation or duties to the
      Employee, except as provided in Section 8(g), and the Employee shall have
      no further obligations or duties to the Company, except as provided in Section
      7.

     

    (b) (i)
      In
      the event of the death of the Employee or (ii) by action taken by the Board
      or
      the Chairman of the Company in the event of the Employee’s inability, by reason
      of physical or mental disability, to continue substantially to perform his
      duties hereunder for a period of 180 consecutive days, during which 180 day
      period Salary and any other benefits hereunder shall not be suspended or
      diminished. Upon any termination of the Employee’s employment under this Section
      6(b), the Company shall have no further obligations or duties to the Employee,
      except as provided in Section 8(g).

     

    7. Confidentiality;
      Noncompetition; Nonsolicitation.

     

    (a) The
      Company and the Employee acknowledge that the services to be performed by the
      Employee under this Agreement are unique and extraordinary and, as a result
      of
      such employment, the Employee will be in possession of confidential information
      relating to the business practices of the Company. The term “confidential
      information” shall mean any and all information (oral and written) relating to
      the Company or any of its affiliates, or any of their respective activities,
      other than such information which can be shown by the Employee to be in the
      public domain (such information not being deemed to be in the public domain
      merely because it is embraced by more general information which is in the public
      domain) other than as the result of breach of the provisions of this Section
      7(a), including, but not limited to, information relating to: trade secrets,
      personnel lists, compensation of employees, financial information, research
      projects, services used, pricing, customers, customer lists and prospects,
      product sourcing, marketing and selling and servicing. Notwithstanding the
      foregoing “confidential information” shall not include information relating to
      the general methodology and mechanics employed by Employee in the performance
      of
      his duties with the Company or that Employee can reasonably demonstrate was
      known to him prior to his employment with the Company. The Employee agrees
      that
      he will not, during or after his termination or expiration of employment
      hereunder, directly or indirectly, use, communicate, disclose or disseminate
      to
      any person, firm or corporation any confidential information regarding the
      clients, customers or business practices of the Company acquired by the Employee
      during his employment by the Company, without the prior written consent of
      the
      Company. Anything herein to the contrary notwithstanding, the provisions of
      this
      Section 7(a) shall not apply (i) when disclosure is required by law or by any
      court, arbitrator, mediator, administrative or legislative body (including
      any
      committee thereof), or any other governmental agency with actual or apparent
      jurisdiction to order the Employee to disclose or make accessible any
      information, (ii) with respect to any other litigation, arbitration or mediation
      involving this Agreement, including, but not limited to, the enforcement of
      this
      Agreement, (iii) as to information that becomes generally known to the public
      or
      within the relevant trade or industry other than due to the Employee’s violation
      of this Section or (iv) as to information that is or becomes available to the
      Employee on a non-confidential basis from a source which is entitled to disclose
      it to the Employee.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (b) The
      Employee hereby agrees that he shall not, during the period of his employment
      and, in the event that the Employee is terminated for Cause (as defined below)
      or resigns without Good Reason (as defined below), for a period of one (1)
      year
      following such employment, within
      any county (or adjacent county) in any State within the United States or
      territory outside of the United States in which the Company is engaged in
      business during the period of the Employee’s employment or on the date of
      termination of the Employee’s employment, engage, have an interest in or render
      any services to any business (whether as owner, manager, operator, licensor,
      licensee, lender, partner, stockholder, joint venturer, employee, consultant
      or
      otherwise) directly competitive with the Company's business activities;
provided,
      however,
      that
      the foregoing prohibition shall not apply to any existing business relationship
      or portfolio companies of ZelnickMedia or
      its
      affiliates
      as of
      the Signing Date; provided,
      further,
      that
      Employee shall not be in breach of this Section 7 solely as a result of
      ZelnickMedia’s (or any
      of
      its affiliates’)
      investment in, ownership of, or provision of services to, any business that
      is
      competitive with the Company so long as the Employee does not serve as a
      principal officer of such business. Except
      as
      required by law or legal process, at no time during the Term or thereafter,
      (i)
      no authorized spokesperson or executive officer of the Company shall, directly
      or indirectly, disparage (or cause any other person to disparage) the personal,
      commercial, business or financial reputation of the Employee and (ii) the
      Employee shall not, directly or indirectly, disparage (or cause any other person
      to disparage) the personal, commercial, business or financial reputation of
      the
      Company or any of its executive officers.

     

    (c) The
      Employee hereby agrees that he shall not, during the period of his employment
      and, in the event that the Employee is terminated for Cause or resigns without
      Good Reason, for a period of one (1) year following such employment, directly
      entice, solicit or in any other manner persuade or attempt to persuade any
      officer, employee or customer, to discontinue or reduce his, her or its
      relationship with the Company; provided,
      that the foregoing shall not be violated by general advertising not targeted
      at
officers,
      employees, or customers
      of the
      Company.

     

    (d) Following
      the termination of the Employee’s employment for any reason whatsoever and upon
      receipt of a written request from the Company, all documents, records,
      notebooks, equipment, employee lists, price lists, specifications, programs,
      customer and prospective customer lists and other materials which refer or
      relate to any aspect of the business of the Company which are in the possession
      of the Employee including all copies thereof, shall be promptly returned to
      the
      Company or, with the prior approval of the Company, destroyed by the Employee
      and the Employee shall certify in writing to the Company as to such destruction.
      Anything to the contrary notwithstanding, nothing in this Section 7(d) shall
      prevent the Employee from retaining a home computer and security system, papers
      and other materials of a personal nature, including personal diaries, calendars
      and Rolodexes, information relating to the Employee’s compensation or relating
      to reimbursement of expenses, information that the Employee reasonably believe
      may be needed for tax purposes, and copies of plans, programs and agreements
      relating to the Employee’s employment. 

     

    
      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

    

    (e) The
      products and proceeds of the Employee’s services hereunder that the Employee may
      acquire, obtain, develop or create during the Term that relate to the Company’s
      business, or that are otherwise made at the direction of the Company or with
      the
      use of the Company’s or its affiliates’ (other than ZelnickMedia and those of
      its affiliates which, other than by reason of common control by ZelnickMedia,
      are not affiliates of the Company ) facilities or materials, including,
      but not limited to, all materials, ideas, concepts, formats, suggestions,
      developments, packages, programs and other intellectual properties
      (collectively, “Works”),
      shall
      be considered a “work
      made for hire,”
as
      that term is defined under the United States Copyright Act, and the Employee
      shall be considered an employee for hire of the Company, and all rights in
      and
      to the Works, including the copyright thereto, shall be the sole and exclusive
      property of the Company, as the sole author and owner thereof, and the copyright
      thereto may be registered by the Company in its own name. In the event that
      any
      part of the Works shall be determined not to be a work made for hire or shall
      be
      determined not to be owned by the Company, the Employee hereby irrevocably
      assigns and transfers to the Company, its successors and assigns, the following:
      (a) the entire right, title and interest in and to the copyrights, trademarks
      and other rights in any such Work and any rights in and to any works based
      upon,
      derived from, or incorporating any such Work (“Derivative
      Work”);
      (b)
      the exclusive right to obtain, register and renew the copyrights or copyright
      protection in any such Work or Derivative Work; (c) all income, royalties,
      damages, claims and payments now or hereafter due or payable with respect to
      any
      such Work and Derivative Work; and (d) all causes of action in law or equity,
      past and future, for infringements or violation of any of the rights in any
      such
      Work or Derivative Work, and any recoveries resulting therefrom. The Employee
      also hereby waives in writing any moral or other rights that he has under state
      or federal laws, or under the laws of any foreign jurisdiction, which would
      give
      him any rights to constrain or prevent the use of any Work or Derivative Work,
      or which would entitle him to receive additional compensation from the Company.
      The Employee shall execute all documents, including without limitation copyright
      assignments and applications and waivers of moral rights, and perform all acts
      that the Company may request, in order to assist the Company in perfecting
      its
      rights in and to any Work and Derivative Work anywhere in the world. The
      Employee hereby appoints the officers of the Company as the Employee’s
      attorney-in-fact to execute documents on behalf of the Employee for this limited
      purpose

     

    (f) The
      parties hereto hereby acknowledge and agree that (i) the Company may be
      irreparably injured in the event of a breach by the Employee of any of his
      obligations under this Section 7, (ii) monetary damages may not be an adequate
      remedy for any such breach, and (iii) the Company shall be entitled to seek
      injunctive relief, in addition to any other remedy which it may have, in the
      event of any such breach.

     

    (g) It
      is the
      intent of the parties hereto that the covenants contained in this Section 7
      shall be enforced to the fullest extent permissible under the laws and public
      policies of each jurisdiction in which enforcement is sought (the Employee
      hereby acknowledging that said restrictions are reasonably necessary for the
      protection of the Company). Accordingly, it is hereby agreed that if any of
      the
      provisions of this Section 7 shall be adjudicated to be invalid or unenforceable
      for any reason whatsoever, said provision shall be construed by limiting and
      reducing it so as to be enforceable to the extent permissible, without
      invalidating the remaining provisions of this Agreement or affecting the
      validity or enforceability of said provision in any other
      jurisdiction.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (h) As
      used
      herein, “Cause”
shall
      mean (i) the conviction of, or a plea of guilty or nolo
      contendere
      by, the
      Employee of any felonious criminal act (other than traffic-related offenses
      or
      as a result of vicarious liability), (ii) fraud, or (iii) any act or omission
      involving malfeasance or gross negligence by the Employee in the performance
      of
      his obligations hereunder, in the case of each of clauses (ii) through (iii)
      above, that relates to and damages the Company and, if capable of being cured
      so
      that the Company is not materially damaged, is not so cured within 15 days
      after
      receipt by the Employee of written notice thereof.

     

    (i) As
      used
      herein, “Good
      Reason”
means
      (i) a condition that materially impairs the ability of the Employee to perform
      his duties as contemplated herein, (ii) the failure by the Company to perform
      any of its material obligations under this Agreement or the Management
      Agreement, or (iii) the requirement that the Employee’s place of service be
      located outside a 10-mile radius of New York City, NY.

     

    8. General.
      This
      Agreement is further governed by the following provisions:

     

    (a) Notices.
      All
      notices relating to this Agreement shall be in writing and shall be either
      personally delivered, sent by facsimile (receipt confirmed) or nationally
      recognized overnight carrier or mailed by certified mail, return receipt
      requested, to be delivered at such address as is indicated below, or at such
      other address or to the attention of such other person as the recipient has
      specified by prior written notice to the sending party. Notice shall be
      effective when so personally delivered, one business day after being sent by
      telecopy or five days after being mailed.

     

    If
      to
      the Company:

     

    Take-Two
      Interactive Software, Inc.

    622
      Broadway

    New
      York,
      New York 10012

    Attention:
      General Counsel

     

    If
      to
      the Employee:

     

    To
      the
      Employee’s address on the books and records of the Company.

     

    (b) Parties
      in Interest.

     

    (i) Employee
      may not delegate his duties or assign his rights hereunder.

     

    (ii) This
      Agreement shall inure to the benefit of, and be binding upon, the parties hereto
      and their respective heirs, legal representatives, successors and permitted
      assigns.

     

    (iii) No
      rights
      or obligations of the Company under this Agreement may be assigned or
      transferred by the Company except that such rights or obligations may be
      assigned or transferred pursuant to a merger, consolidation or similar
      transaction in which the Company is not the continuing entity, or a sale or
      liquidation of all or substantially all of the assets and business of the
      Company; provided,
      that
      the assignee or transferee is the successor to all or substantially all of
      the
      assets and business of the Company and such assignee or transferee assumes
      the
      liabilities, obligations and duties of the Company, as contained in this
      Agreement, either contractually or as a matter of law.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (c) Entire
      Agreement.
      This
      Agreement supersedes any and all other agreements, either oral or in writing,
      between the parties hereto, with respect to the employment of the Employee
      by
      the Company, other than the Management Agreement. This Agreement together with
      the Management Agreement (as in effect on the Signing Date after giving effect
      to the Second Amendment) contain all of the covenants and agreements between
      the
      parties with respect to such employment in any manner whatsoever. Any
      modification or termination of this Agreement, or the Management Agreement
      with
      respect to the Employee’s employment by the Company, will be effective only if
      it is in writing signed by the party to be charged.

     

    (d) Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York. Employee agrees to and hereby does submit to jurisdiction
      before any state or federal court of record in New York County.

     

    (e) Warranty.
      Employee hereby warrants and represents as follows:

     

    (i) That
      the
      execution of this Agreement and the discharge of Employee’s obligations
      hereunder will not breach or conflict with any other contract, agreement, or
      understanding between Employee and any other party or parties.

     

    (ii) Employee
      has ideas, information and know-how relating to the type of business conducted
      by Company, and Employee’s disclosure of such ideas, information and know-how to
      Company will not conflict with or violate the rights of any third party or
      parties.

     

    (iii) Employee
      will not disclose any trade secrets relating to the business conducted by any
      previous Company and agrees to indemnify and hold Company harmless for any
      liability arising out of Employee’s use of any such trade secrets.

     

    (f) Severability.
      In the
      event that any term or condition in this Agreement shall for any reason be
      held
      by a court of competent jurisdiction to be invalid, illegal or unenforceable
      in
      any respect, such invalidity, illegality or unenforceability shall not affect
      any other term or condition of this Agreement, but this Agreement shall be
      construed as if such invalid or illegal or unenforceable term or condition
      had
      never been contained herein.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (g) Indemnification.
      The
      Employee shall be entitled to the benefits of all provisions of the Certificate
      of Incorporation and Bylaws of the Company, each as amended, that provide for
      indemnification of officers and directors of the Company. In addition, without
      limiting the indemnification provisions of the Certificate of Incorporation
      or
      Bylaws, to the fullest extent permitted by law, the Company shall indemnify
      and
      save and hold harmless the Employee from and against, and pay or reimburse,
      any
      and all claims, demands, liabilities, costs and expenses, including judgments,
      fines or amounts paid on account thereof (whether in settlement or otherwise),
      and reasonable expenses, including attorneys’ fees actually and reasonably
      incurred (including, but not limited to, investigating, preparing, pursuing
      or
      defending any action, suit, investigation, proceeding, claim or liability if
      the
      Employee is made or threatened to be made a party to or witness in any action,
      suit, investigation or proceeding, or if a claim or liability is asserted or
      threatened to be asserted against Employee (whether or not in the right of
      the
      Company), by reason of the fact that he was or is a director, officer or
      employee, or acted in such capacity on behalf of the Company, or the rendering
      of services by the Employee pursuant to this Agreement or the Employee’s prior
      employment agreement with the Company, whether or not the same shall proceed
      to
      judgment or be settled or otherwise brought to a conclusion (except only if
      and
      to the extent that such amounts shall be finally adjudged to have been caused
      by
      Employee’s willful misconduct or gross negligence). Upon the Employee’s request,
      the Company will advance any reasonable expenses or costs, subject to the
      Employee undertaking to repay any such advances in the event there is an
      unappealable final determination that Employee is not entitled to
      indemnification for such expenses. Employee shall be entitled to indemnification
      under this Section regardless of any subsequent amendment of the Certificate
      of
      Incorporation or of the Bylaws of the Company. Further, Employee shall be
      entitled to be covered by any directors’ and officers’ liability insurance
      policies which the Company maintains for the benefit of its directors and
      officers, subject to the limitations of such policies. This provision shall
      survive the expiration or termination of this Agreement.

     

    (h) Withholding.
      The
      Company may withhold from any and all amounts payable under this Agreement
      such
      federal, state and local taxes as may be required to be withheld pursuant to
      any
      applicable law or regulation.

     

    (i) Execution
      in Counterparts.
      This
      Agreement may be executed by the parties in one or more counterparts, each
      of
      which shall be deemed to be an original but all of which taken together shall
      constitute one and the same agreement, and shall become effective when one
      or
      more counterparts has been signed by each of the parties hereto and delivered
      to
      each of the other parties hereto.

     

    [End
      of
      text - signature page follows]

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

    IN
      WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement
      as of the date first above written.

     

    
      
        	 	
                TAKE-TWO
                  INTERACTIVE SOFTWARE, INC.

              
	 	 	 
	 	
                By:
                  

              	/s/
                Michael
                Dornemann                
                
	 	
                 

              	
                Name:
                  Michael Dornemann

              
	 	
                 

              	
                Title:
                  Director

              

      

       

      
        
          	 	
                  By:
                    

                	/s/
                  Seth D. Krauss
	 	
                   

                	
                  Name:
                    Seth D. Krauss

                
	 	
                   

                	
                  Title:
                    Executive Vice President
                    and 

                   
                    General Counsel

                

        

      

       

      
        	 	
                /s/
                  Benjamin
                  Feder           
                  

              
	 	
                Benjamin
                  Feder

              

      

      
         

      

       

    

    
      
        
        

      

      
        9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]