Document:

exv10w5

 

Exhibit 10.5

FORM OF

MANAGEMENT SERVICES AGREEMENT

     THIS MANAGEMENT SERVICES AGREEMENT (this “Agreement”) is entered into as of [•], 2007,
by and between EchoStar Communications Corporation, a Nevada corporation (“ECC”), and
EchoStar Holding Corporation, a Nevada corporation (the “Company”).

     WHEREAS, the Board of Directors of ECC has determined that it is appropriate and desirable to
separate ECC and the Company into two publicly-traded companies by separating from ECC and
transferring to the Company ECC’s non-consumer related businesses and related assets and
liabilities (the “Separation”); and

     WHEREAS, ECC and the Company have entered into that certain Separation Agreement, dated as of
[•], 2007 (the “Separation Agreement”), in order to carry out, effect and consummate the
Separation; and

     WHEREAS, the Company and ECC believe that it is in their mutual interests for the Company to
obtain management services from ECC in connection with the operation of its business after the
Separation and for the Company to compensate ECC for the performance of such management services;
and

     WHEREAS, the parties desire to set forth in this Agreement the management services to be
provided by ECC to the Company and the basis upon which ECC shall be compensated by the Company.

     NOW, THEREFORE, in consideration of the mutual promises, covenants, agreements,
representations and warranties contained herein, and for other good and valuable consideration the
receipt and adequacy of which are hereby acknowledged, the parties hereto hereby agree, intending
to be legally bound, as follows.

ARTICLE I

Definitions

     Section 1.1 Definitions. Unless otherwise defined herein, each capitalized term shall
have the meaning specified for such term in the Separation Agreement. As used in this Agreement:

     (a) “Agreement” means this Management Services Agreement, the provisions of the
Separation Agreement referenced herein and all Schedules attached hereto and incorporated herein by
this reference and all amendments, modifications and changes hereto and thereto.

     (b) “Allocated Employee Expenses” has the meaning set forth in Section 3.1 hereof.

     (c) “Bankruptcy Event” will be deemed to have occurred with respect to the Company or
ECC, as the case may be, upon the Company’s or ECC’s (as applicable) insolvency, general assignment
for the benefit of creditors, the voluntary commencement by the Company or ECC (as applicable) of
any case, proceeding, or other action seeking reorganization, arrangement, adjustment, liquidation,
dissolution, or consolidation of the Company’s or ECC’s (as applicable) debts under any law
relating to bankruptcy, insolvency, or reorganization, or relief of debtors, or seeking appointment
of a receiver, trustee, custodian, or other similar official for the Company or ECC

 

 

(as applicable)
or for all or any substantial part of the Company’s or ECC’s (as applicable) assets (each, a
“Bankruptcy Proceeding”), or the involuntary filing against the Company or ECC (as
applicable) of any Bankruptcy Proceeding that is not stayed within 60 days after such filing.

     (d) “Change in Control” will be deemed to have occurred, with respect to the Company
or ECC, as the case may be, if a merger, consolidation, binding share exchange, acquisition, or
similar transaction (each, a “Transaction”), or series of related Transactions, involving
the Company or ECC (as applicable) occurs as a result of which the voting power of all voting
securities of the Company or ECC (as applicable) outstanding immediately prior thereto represent
(either by remaining outstanding or being converted into voting securities of the surviving entity)
less than 50% of the voting power of the Company or ECC (as applicable) or the surviving entity
outstanding immediately after such Transaction (or if the Company or ECC (as applicable) or the
surviving entity after giving effect to such Transaction is a subsidiary of the issuer of
securities in such Transaction, then the voting power of all voting securities of the Company or
ECC (as applicable) outstanding immediately prior to such Transaction represent (by being converted
into voting securities of such issuer) less than 50% of the voting power of the issuer outstanding
immediately after such Transaction.

     (e) “Company Indemnified Parties” means the Company and its Subsidiaries and each of
their Affiliates, directors, officers, employees and agents, and each of the heirs, executors,
successors and assigns of any of the foregoing.

     (f) “ECC Indemnified Parties” means ECC and its Subsidiaries and each of their
Affiliates, directors, officers, employees and agents, and each of the heirs, executors, successors
and assigns of any of the foregoing.

     (g) “Expenses” means any and all expenses incurred in connection with investigating,
defending or asserting any claim, action, suit or proceeding incident to any matter indemnified
against hereunder (including court filing fees, court costs, arbitration fees or costs, witness
fees, and reasonable fees and disbursements of legal counsel, investigators, expert witnesses,
consultants, accountants and other professionals).

     (h) “Initial Term” has the meaning set forth in Section 4.1 hereof.

     (i) “Look Back Period” has the meaning set forth in Section 5.3 hereof.

     (j) “Management Employees” means the employees of ECC listed on Schedule 2.1
hereto.

     (k) “Management Services” has the meaning forth in Section 2.1 hereof.

     (l) “Renewal Term” has the meaning set forth in Section 4.1 hereof.

     (m) “Third Party” means a Person that is not an Affiliate of any party hereto.

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ARTICLE II

Performance of Services

     Section 2.1 Description of the Services. Following the Distribution Date, ECC shall
provide, with respect to each of the Management Employees, the management services specified in
Schedule 2.1 (the “Management Services”) to the Company or its Subsidiaries, in
accordance with the terms and conditions for such Management Services listed in Schedule
2.1.

     Section 2.2 Schedules Update. To the extent any Management Services are
mischaracterized in any Schedule 2.1, ECC and the Company shall negotiate in good faith to
amend Schedule 2.1 as appropriate.

ARTICLE III

Compensation For Providing Services

     Section 3.1 Allocated Employee Expenses.

     The Company shall pay ECC for the Management Services based on an allocated portion of the
personnel costs and related expenses that are incurred by ECC in connection with the Management
Services performed by it under this Agreement (collectively, the “Allocated Employee
Expenses”). The Allocated Employee Expenses shall be set forth in, or determined from time to
time in the manner set forth in Schedule 3.1 attached hereto, as such Schedule 3.1
may be periodically amended and revised by the parties.

     Section 3.2 Adjustment To Allocated Employee Expenses. The Allocated Employee Expenses
shall be estimated at the beginning of each calendar year based on the anticipated Management
Services to be provided to the Company during the upcoming calendar year. ECC and the Company
shall review and evaluate the Allocated Employee Expenses for reasonableness annually and shall
negotiate in good faith to reach agreement on any appropriate adjustment to the Allocated Employee
Expenses based on such review and evaluation, including updating the aggregate salaries and
benefits of Management Employees (and any other costs or expenses included in Allocated Employee
Expenses), revising the allocated percentages of time spent providing Management Services to the
Company and agreeing on the appropriate effective date (which may be retroactive) of any such
adjustment to the Allocated Employee Expenses. The initial review of and adjustment to the
Allocated Employee Expenses shall be effective as of [January 1], 2009. Nothwithstanding the
foregoing, ECC and the Company may mutually agree to review, evaluate and/or make adjustments to
the Allocated Employee Expenses at any time.

     Section 3.3
Cost Reimbursement.
In addition to the Allocated Employee Expenses payable pursuant to Section 3.1, the Company
also shall reimburse ECC for all direct out-of-pocket costs (with no markup) incurred by ECC,
unless such costs are paid directly by the Company, for postage and out-of-town courier service
charges, for any applicable software license fees attributable to desktop or laptop computers
utilized by Management Employees, and for expenses incurred by Management Employees related to
Management Services performed on behalf of the Company, including travel and meals and
entertainment related to such Management Services, and for any other miscellaneous expenses that
may be incurred by ECC on behalf of the Company.

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     Section 3.4 Payment Procedures.

     (a) The Company shall pay ECC, by wire or intrabank transfer of funds or in such other manner
specified by ECC to the Company, in arrears on or before the last day of each calendar month
beginning [•], 2008, the Allocated Employee Expenses then in effect.

     (b) Any reimbursement to be made by the Company to ECC pursuant to Section 3.3 shall be paid
by the Company to ECC within 60 days after receipt by the Company of any invoice therefor, by wire
or intrabank transfer of funds or in such other manner as specified by ECC to the Company. ECC
shall invoice the Company monthly for reimbursable expenses incurred by ECC on behalf of the
Company during the preceding calendar month. Any invoice or statement pursuant to this Section
3.4(b) shall be accompanied by supporting documentation in reasonable detail with respect to the
actual costs or expenses incurred by ECC for which ECC is entitled to reimbursement.

     (c) For the avoidance of doubt, Allocated Employee Expenses, and reimbursements pursuant to
Section 3.3 or Section 3.5, as applicable, shall be paid to ECC as specified in this Article III,
but in no event later than March 15 of the calendar year following the calendar year in which such
Allocated Employee Expenses were incurred.

     Section 3.5 Allocation by Agreement. Notwithstanding the preceding provisions of this
Article III, ECC and the Company may agree that the Company’s payment to ECC of a fixed amount
shall be full reimbursement as to any item for which ECC may be entitled to reimbursement under
this Agreement. As to any item that is the subject of such agreement, the amount of the
reimbursement fixed by such agreement shall control, it being agreed, however, that as to any item
that is not the subject of an agreement, the preceding provisions of Article III shall apply.

ARTICLE IV

Term

     Section 4.1 Term Generally. The term of this Agreement shall commence on the
Distribution Date and shall continue until the first anniversary of the Distribution Date (the
“Initial Term”) and shall be renewed
automatically for successive one-year periods thereafter (each a “Renewal Term”),
unless earlier terminated in accordance with Section 4.3.

     Section 4.2 Certain Services Discontinued. At any time during the Initial Term or any
Renewal Term, upon at least 180 days’ prior notice by ECC to the Company or 30 days’ prior notice
by the Company to ECC, either ECC or the Company may elect to discontinue providing to the Company
or obtaining from ECC some or all of the Management Services
described in Section 2.1. In such
event, ECC’s obligation to provide any Management Services that have been discontinued pursuant to
this Section 4.2, and the Company’s obligation to compensate ECC for any such Management Services,
shall cease as of the end of such 180-day period or 30-day period, as the case may be, or such
later date as may be specified in the notice, and this Agreement shall remain in effect with
respect to any Management Services that have not been so discontinued. Each party shall remain
liable to the other for any required payment or performance accrued prior to the effective date of
discontinuance of any Management Service or termination of this Agreement in its entirety.

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     Section 4.3 Termination. This Agreement shall be terminated upon the occurrence of the
following events:

     (a) at any time upon at least 30 days’ prior written notice by the Company to ECC;

     (b) at the end of any Renewal Term upon at least 180 days’ prior written notice by ECC to the
Company;

     (c) immediately upon notice (or at any time specified in such notice) by ECC to the Company if
a Change in Control or Bankruptcy Event occurs with respect to the Company; or

     (d) immediately upon notice (or at any time specified in such notice) by the Company to ECC if
a Change in Control or Bankruptcy Event occurs with respect to ECC.

     Upon any termination of this Agreement in accordance with this Section 4.3, the Initial Term or Renewal Term then in effect shall also terminate.

ARTICLE V

Management Employees

     Section 5.1 Supervision. ECC shall be responsible for hiring, supervising,
instructing, discharging, and otherwise managing the Management Employees, and administering any
employee benefit plans applicable to such employees. The Company acknowledges that the Management
Employees also shall be performing services for ECC and may be performing services for certain
Subsidiaries and Affiliates of ECC.

     Section 5.2 Employer. Notwithstanding the Management Services provided by Management
Employees to the Company, the parties acknowledge that ECC is and shall remain the employer of all
Management Employees and shall be responsible for the employment and training of all Management
Employees and for the payment of salaries, wages, benefits (including health insurance, retirement,
and other similar benefits, if any) and other compensation applicable to all Management Employees.
All Management Employees shall be subject to the personnel policies of ECC and shall be entitled
to participate in ECC’s employee benefit plans to the same extent as similarly situated employees
of ECC performing services in connection with ECC’s business. ECC shall be responsible for the
payment of all federal, state, and local withholding taxes on the compensation of all Management
Employees and other such employment related taxes as are required by law. The Company shall
cooperate with ECC to facilitate ECC’s compliance with applicable federal, state, and local laws,
rules, regulations, and ordinances applicable to the employment of all Management Employees by ECC
and their provision of Management Services to the Company under this Agreement.

     Section 5.3 Additional Employee Provisions. ECC shall have the right to terminate the
employment of any Management Employee at any time. A portion of any severance payments payable to
any Management Employee spending 50% or more of such person’s time over the Look-Back Period (as
defined below) in connection with providing Management Services to the Company at the Company’s
request who separates from service with ECC during the Initial Term or any Renewal Term shall be
allocated to the Company, as an additional Allocated Employee Expense with respect to the month of
such separation from service, based on the percentage determined by dividing the total number

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of
months that such person was a Management Employee providing Management Services to the Company on a
50% or greater basis by the total number of months that such person was employed by ECC or its
predecessors, in each case to the extent taken into account for purposes of determining any
severance payments payable to such person, or such other basis upon which the amount of the
severance payments payable to such person may be determined, multiplied by the percentage of such
person’s time devoted to providing Management Services to the Company, in each case with the
percentage of such person’s time devoted to providing Management Services to the Company determined
for the one-year period (or such applicable shorter period of time if such Management Employee was
a Management Employee for less than one year) immediately preceding the date of separation of
service (the “Look Back Period”). The Company shall not solicit any Management Employee to
become an employee of the Company without the prior consent of ECC, unless and until ECC terminates
the employment of such Management Employee.

ARTICLE VI

No Agency Relationship

     Section 6.1 No Agency Relationship. ECC, in performance of this Agreement, is acting
as an independent contractor to the Company, and not as a partner, joint venturer or agent, nor do
the parties hereto intend to create by this Agreement an employer-employee relationship. Neither
party hereto shall be bound by any representation, act or omission of the other party hereto. Neither party hereto has any
right, power or authority to create any obligation, express or implied, on behalf of the other
party hereto.

ARTICLE VII

Indemnification

     Section 7.1 Indemnification by the Company. The Company shall indemnify, defend, and
hold harmless the ECC Indemnified Parties, from and against any and all Liabilities that any ECC
Indemnified Party may suffer arising from or out of, or relating to (a) any breach by the Company
of its obligations under this Agreement or (b) any acts of ECC in providing the employees and
Management Services to be provided by ECC pursuant to this Agreement, except to the extent such
Liabilities (i) arise from or relate to any breach by ECC of its obligations under this Agreement,
(ii) are attributable to the negligence, willful misconduct, fraud, or bad faith of ECC or such
other ECC Indemnified Party seeking indemnification under this Section 7.1, or (iii) are covered by
insurance maintained by ECC or such other ECC Indemnified Party.

     Section 7.2 Indemnification by ECC. ECC shall indemnify, defend, and hold harmless
the Company Indemnified Parties, from and against any Liabilities any Company Indemnified Employee
may suffer arising from or out of, or relating to, (a) any breach by ECC of its obligations under
this Agreement or (b) the negligence, willful misconduct, fraud, or bad faith of ECC in performing
its obligations under this Agreement.

     Section 7.3 Limitations and Liability. Each party hereto shall have a duty to
mitigate the Liabilities for which the other is responsible hereunder. IN NO EVENT SHALL ANY PARTY
BE LIABLE FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL (INCLUDING LOSS OF

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REVENUES
OR PROFITS),
EXEMPLARY OR PUNITIVE DAMAGES OR THE LIKE ARISING UNDER ANY LEGAL OR EQUITABLE THEORY OR ARISING
UNDER OR IN CONNECTION WITH THIS AGREEMENT (OR THE PROVISION OF SERVICES HEREUNDER), ALL OF WHICH
ARE HEREBY EXCLUDED BY AGREEMENT OF THE PARTIES REGARDLESS OF WHETHER OR NOT ANY PARTY TO THIS
AGREEMENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

     Section 7.4 Indemnification is Exclusive Remedy. The indemnification provisions of
this Article VII shall be the exclusive remedy for breach of this Agreement.

     Section 7.5 Indemnification Procedures. All claims for indemnification pursuant to
this Article VII shall be made in accordance with the provisions set forth in Article V of
the Separation Agreement.

ARTICLE VIII

Miscellaneous

     Section 8.1 Entire Agreement. This Agreement, including the Schedules hereto and the
sections of the Separation Agreement referenced herein, constitutes the entire agreement between
the parties hereto with respect to the subject matter contained herein, and supersedes all prior
agreements, negotiations, discussions, understandings, writings and commitments between the parties
hereto with respect to such subject matter.

     Section 8.2 Governing Law; Service of Process; Jurisdiction. This Agreement and the
legal relations between the parties hereto shall be governed by and construed in accordance with
the laws of the State of New York, without regard to the conflict of laws rules thereof to the
extent such rules would require the application of the law of another jurisdiction. The state or
federal courts located within the City of New York shall have exclusive jurisdiction over any and
all disputes between the parties hereto, whether in law or equity, arising out of or relating to
this Agreement and the agreements, instruments and documents contemplated hereby and the parties
hereto consent to and agree to submit to the exclusive jurisdiction of such courts. Each of the
parties hereto hereby waives and agrees not to assert in any such dispute, to the fullest extent
permitted by Applicable Law, any claim that (i) such party is not personally subject to the
jurisdiction of such courts, (ii) such party and such party’s property is immune from any legal
process issued by such courts or (iii) any litigation or other proceeding commenced in such courts
is brought in an inconvenient forum.

     Section 8.3 Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT THAT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED IN THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)

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ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAS
BEEN INDUCED TO ENTER INTO THIS AGREEMENT.

     Section 8.4 Amendment. This Agreement shall not be amended, modified or supplemented
except by a written instrument signed by an authorized representative of each of ECC and the
Company.

     Section 8.5 Waiver. Any term or provision of this Agreement may be waived, or the
time for its performance may be extended, by the party or the parties hereto entitled to the
benefit thereof. Any such waiver shall be validly and sufficiently given for the purposes of this
Agreement if, as to any party hereto, it is in writing signed by an authorized representative of
such party. The failure of any party hereto to enforce at any time any provision of this Agreement
shall not be construed to be a waiver of such provision, or in any way to affect the validity of
this Agreement or any part hereof or the right of any party hereto thereafter to enforce each and
every such provision. No waiver of any breach of this Agreement shall be held to constitute a
waiver of any other or subsequent breach.

     Section 8.6 Severability. If any provision of this Agreement or the application
thereof to any Person or circumstance is determined by a court of competent jurisdiction to be
invalid, void or unenforceable, the remaining provisions hereof or thereof, or the application of
such provision to Persons or circumstances or in jurisdictions other than those as to which it has
been held invalid or unenforceable, shall remain in full force and effect and shall in no way be
affected, impaired or invalidated thereby, so long as the economic or legal substance of the
transactions contemplated hereby or thereby, as the case may be, is not affected in any manner
adverse to any party hereto or thereto. Upon such determination, the parties hereto shall negotiate
in good faith in an effort to agree upon such a suitable and equitable provision to effect the
original intent of the parties hereto.

     Section 8.7 Execution in Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original instrument, but all of which shall be
considered one and the same agreement, and shall become binding when one or more counterparts have
been signed by and delivered to each of the parties hereto.

     Section 8.8 Successors and Assigns. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their successors and permitted assigns; provided,
however, that the rights and obligations of either party hereto under this Agreement shall
not be assignable by such party without the prior written consent of the other party. The
successors and permitted assigns hereunder shall include any permitted assignee as well as the
successors in interest to such permitted assignee (whether by merger, liquidation (including
successive mergers or liquidations) or otherwise).

     Section 8.9 Third Party Beneficiaries. Except to the extent otherwise provided in
Article VII, the provisions of this Agreement are solely for the benefit of the parties
hereto and their respective Affiliates, successors and permitted assigns and shall not confer upon
any third Person any remedy, claim, liability, reimbursement or other right in excess of those
existing without reference to this Agreement.

     Section 8.10 Notices. All notices or other communications under this Agreement shall be in writing and shall be
deemed to be duly given when delivered or mailed in accordance with the terms of Section 9.12 of
the Separation Agreement.

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     Section 8.11 No Public Announcement. Neither ECC nor the Company shall, without the
approval of the other, make any press release or other public announcement concerning the
transactions contemplated by this Agreement, except as and to the extent that either party hereto
shall be so obligated by Applicable Law or the rules of any regulatory body, stock exchange or
quotation system, in which case the other party hereto shall be advised and the parties hereto
shall use commercially reasonable efforts to cause a mutually agreeable release or announcement to
be issued; provided, however, that the foregoing shall not preclude communications
or disclosures necessary to implement the provisions of this Agreement or to comply with Applicable
Law, accounting and SEC disclosure obligations or the rules of any stock exchange.

     Section 8.12 Limited Liability. Notwithstanding any other provision of this
Agreement, no individual who is a stockholder, director, employee, officer, agent or representative
of the Company or ECC, in its capacity as such, shall have any liability in respect of or relating
to the covenants or obligations of such party under this Agreement and, to the fullest extent
legally permissible, each of the Company and ECC, for itself and its respective stockholders,
directors, employees, officers and Affiliates, waives and agrees not to seek to assert or enforce
any such liability that any such Person otherwise might have pursuant to Applicable Law.

     Section 8.13 Mutual Drafting. This Agreement shall be deemed to be the joint work
product of ECC and the Company and any rule of construction that a document shall be interpreted or
construed against a drafter of such document shall not be applicable.

     Section 8.14 Effect if Separation Does Not Occur. Notwithstanding anything in this
Agreement to the contrary, if the Separation Agreement is terminated prior to the Distribution
Date, this Agreement shall be of no further force and effect.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their authorized
representatives as of the date first above written.

	 	 	 	 	 	 	 
	 	 	EchoStar Communications Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 
	 	  

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	EchoStar Holding Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 
	 	  

Name:
	 	 
	 

	 	 	 	Title:	 	 

Signature Page to Management Services Agreement

10exv10w22

 

Exhibit 10.22

FORM OF

ECHOSTAR HOLDING CORPORATION

2008 STOCK INCENTIVE PLAN

Section 1. Purpose

     The purpose of this Stock Incentive Plan (the “Plan”) is to promote the interests of EchoStar
Holding Corporation (the “Company”) and its Subsidiaries by aiding the Company in attracting and
retaining Participants capable of assuring the future success of the Company, to offer such
personnel incentives to put forth maximum efforts for the success of the Company’s business and to
afford such personnel an opportunity to acquire a proprietary interest in the Company.

Section 2. Definitions

     As used in the Plan, the following terms shall have the meanings set forth below:

     (a) “Award” shall mean an award granted to a Participant in accordance with the terms of this
Plan in the form of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units,
Performance Awards, Dividend Equivalents or Other Stock-Based Awards granted under the Plan, or any
combination of the foregoing.

     (b) “Award Agreement” shall mean any written agreement, contract or other instrument or
document evidencing any Award granted under the Plan.

     (c) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any
regulations promulgated thereunder.

     (d) “Committee” shall mean the committee described in Section 3 of the Plan.

     (e) “Company” shall mean EchoStar Holding Corporation, a Nevada corporation, and any successor
corporation.

     (f) “Dividend Equivalent” shall mean any right granted under Section 6(e) of the Plan.

     (g) “Echostar” shall mean EchoStar Communications Corporation, a Nevada corporation, and any
successor corporation.

     (h) “Employee Matters Agreement” shall mean the agreement entered into by the Company and
EchoStar as of [                    ].

     (i) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     (j) “Key Employee” shall mean any person, including officers and directors, in the regular
full-time employment of the Company or a Subsidiary who, in the opinion of the Committee, is,

 

 

or is expected to be, primarily responsible for the management, growth or protection of some part
or all of the business of the Company and its Subsidiaries or otherwise to contribute substantially
to the success of the Company and its Subsidiaries.

     (k) “Fair Market Value” shall mean, with respect to Shares, the final closing price, as quoted
by the National Association of Securities Dealers Automated Quotation System (“NASDAQ”) or any
other exchange on which the Shares are traded, for the date in question. If Fair Market Value is in
reference to property other than Shares, the Fair Market Value of such other property shall be
determined by such methods or procedures as shall be established from time to time by the
Committee.

     (l) “Incentive Stock Option” shall mean an option granted under Section 6(a) of the Plan that
is intended to meet the requirements of Section 422 of the Code or any successor provision.

     (m) “Non-employee Director” shall mean a director of the Company who is a “non-employee
director” within the meaning of Rule 16b-3.

     (n) “Non-Qualified Stock Option” shall mean an option granted under Section 6(a) of the Plan
that is not intended to be an Incentive Stock Option.

     (o) “Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option, and shall
include Restoration Options.

     (p) “Other Stock-Based Award” shall mean any right granted under Section 6(f) of the Plan.

     (q) “Outside Director” shall mean a director of the Company who is an “outside director”
within the meaning of Section 162(m) of the Code.

     (r) “Participant” shall mean (1) any Key Employee designated to be granted an Award under the
Plan by the Committee, (2) a consultant or advisor currently providing services to the Company or
Subsidiary (by contract or otherwise) designated to be granted an Award under the Plan by the
Committee, or (3) any employee of the Company or Subsidiary designated to be granted an Award under
the Plan by the Committee if such grant is part of a broad-based performance incentive program. In
addition, in connection with the spin-off of the Company, certain current and former employees and
consultants and advisors of Echostar will be considered Participants in connection with their
receipt of Replacement and Substitute Awards.

     (s) “Performance Award” shall mean any right granted under Section 6(d) of the Plan.

     (t) “Person” shall mean any individual, corporation, partnership, association or trust.

     (u) “Plan” shall mean this 2008 Stock Incentive Plan, as amended from time to time.

     (v) “Replacement and Substitute Award” shall mean an Option or Restricted Stock Unit granted
in connection with the spin-off of the Company to certain current and former employees
and consultants and advisors of Echostar pursuant to the terms of the Employee Matters Agreement.

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     (w) “Restoration Option” shall mean any Option granted under Section 6(a)(iv) of the Plan
which confers upon the Participant the right to receive a new Option upon the payment of the
exercise price of a previously held Option by delivery of previously owned Shares.

     (x) “Restricted Stock” shall mean any Share granted under Section 6(c) of the Plan, subject to
such restrictions as the Committee deems appropriate or desirable.

     (y) “Restricted Stock Unit” shall mean any unit granted under Section 6(c) of the Plan
evidencing the right to receive a Share (or a cash payment equal to the Fair Market Value of a
Share) at some future date.

     (z) “Retirement” shall mean becoming eligible to receive immediate retirement benefits under a
retirement or pension plan of the Company or any Subsidiary.

     (aa) “Rule 16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission
under the Securities Exchange Act of 1934, as amended, or any successor rule or regulation.

     (bb) “Shares”
shall mean shares of Class A Common Stock, $0.001 par value, of the Company or
such other securities or property as may become subject to Awards pursuant to an adjustment made
under Section 4(c) of the Plan.

     (cc) “Stock Appreciation Right” shall mean any right granted under Section 6(b) of the Plan.

     (dd) “Subsidiary” shall mean any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if each of the corporations other than the last corporation
in the unbroken chain owns 50% or more of the voting stock or other equity interests in one of the
other corporations in such chain.

     (ee) “Ten-Percent Stockholder” shall mean an individual who owns (within the meaning of
Section 422(b)(6) of the Code) stock possessing more than 10% of the total combined voting power of
all classes of stock of the Company or of a Subsidiary.

     (ff) “Total Disability” shall mean the complete and permanent inability of an employee
Participant to perform such Participant’s duties under the terms of the Participant’s employment
with the Company or any Subsidiary, as determined by the Committee upon the basis of such evidence,
including independent medical reports and data, as the Committee deems appropriate or necessary.

3

 

Section 3. Administration.

     (a) Power and Authority of the Committee.

          (i) The Committee. The Committee shall consist of at least two directors of the Company and
may consist of the entire Board of Directors; provided, however, that (i) if the Committee consists
of less than the entire Board of Directors, each member shall be a Non-employee Director and (ii)
to the extent necessary for any Award intended to qualify as performance-based compensation under
Section 162(m) of the Code, to so qualify, each member of the Committee, whether or not it consists
of the entire Board of Directors, shall be an Outside Director. The Committee may determine the
extent to which any Stock Option under the Plan is required to comply, or not comply, with Section
409A of the Code.

          (ii) Power and Authority. Subject to the express provisions of the Plan and to applicable law,
the Committee shall have full power and authority to: (i) designate Participants; (ii) determine
the type or types of Awards to be granted to each Participant under the Plan; (iii) determine the
number of Shares to be covered by (or with respect to which payments, rights or other matters are
to be calculated in connection with) each Award; (iv) determine the terms and conditions of any
Award or Award Agreement which may be based on various factors such as length of employment and/or
performance of the Participant or the Company (such performance criteria may include but are not
limited to Company’s achievement of specified financial or other performance metrics, such as
subscriber growth); (v) amend the terms and conditions of any Award or Award Agreement and
accelerate the exercisability of Options or the lapse of restrictions relating to Restricted Stock,
Restricted Stock Units or other Awards; (vi) determine whether, to what extent and under what
circumstances Awards may be exercised in cash, Shares, other securities, other Awards or other
property, or canceled, forfeited or suspended; (vii) determine whether, to what extent and under
what circumstances cash, Shares, other securities, other Awards, other property and other amounts
payable with respect to an Award under the Plan shall be deferred either automatically or at the
election of the holder thereof or the Committee; (viii) interpret and administer the Plan and any
instrument or agreement relating to, or Award made under, the Plan; (ix) establish, amend, suspend
or waive such rules and regulations and appoint such agents as it shall deem appropriate for the
proper administration of the Plan; and (x) make any other determination and take any other action
that the Committee deems necessary or desirable for the administration of the Plan. The Committee’s
selection of a person to participate in this Plan at any time shall not require the Committee to
select such person to participate in this Plan at any other time. Unless otherwise expressly
provided in the Plan, all designations, determinations, interpretations and other decisions under
or with respect to the Plan or any Award shall be within the sole discretion of the Committee, may
be made at any time and shall be final, conclusive and binding upon any Participant, any holder or
beneficiary of any Award and any employee of the Company or any Subsidiary. The Committee’s
decisions and determinations under the Plan need not be uniform and may be made selectively among
Participants, whether or not such Participants are similarly situated.

     (b) Delegation. The Committee may, in its sole discretion, delegate such powers and
duties under the Plan as it deems appropriate; provided, however, that the Committee shall not
delegate its powers and duties under the Plan with regard to executive officers or directors of the
Company or any Subsidiary who are subject to Section 16 of the Exchange Act.

4

 

     (c) Replacement and Substitute Awards. In exercising its power and authority
hereunder with respect to Replacement and Substitute Awards held by current and former employees
and directors of EchoStar (and their respective transferees), the Committee shall (i) act in good
faith and (ii) cooperate with and give due regard to any information provided by Echostar. In
addition, with respect to such Replacement and Substitute Awards, the Company shall not, without
the prior written consent of the Echostar Compensation Committee, take any discretionary action to
accelerate vesting of any such awards.

Section 4. Shares Available for Awards.

     (a) Shares Available. Subject to adjustment as provided in Section 4(c), the number of
Shares that may be issued subject to Awards under the Plan shall not
exceed 16,000,000; provided,
however, that during the term of the Plan (i) no Participant may be granted Awards (other than
Awards described in clause (ii) below) in the aggregate in
respect of more than 800,000 Shares in any one calendar year and (ii) the maximum amount that any Participant may receive in any
one calendar year in respect of Performance Awards granted pursuant to Section 6(d) may not exceed
the Fair Market Value of 400,000 Shares. Shares to be issued under the Plan may be either
Shares reacquired and held in the treasury or authorized but unissued Shares. If any Shares covered
by an Award or to which an Award relates are not purchased or are forfeited, or if an Award
otherwise terminates without delivery of any Shares, then the number of Shares counted against the
aggregate number of Shares available under the Plan with respect to such Award, to the extent of
any such forfeiture or termination, shall again be available for granting Awards under the Plan.
The Company shall at all times keep available out of authorized but
unissued and/or reacquired Shares the number of
Shares to satisfy Awards granted under the Plan.

     (b) Accounting for Awards. For purposes of this Section 4, if an Award entitles the
holder thereof to receive or purchase Shares, the number of Shares covered by such Award or to
which such Award relates shall be counted on the date of grant of such Award against the aggregate
number of Shares available under Section 4(a) above for granting Awards under the Plan.

     (c) Adjustments. In the event that the Committee shall determine that any dividend or
other distribution (whether in the form of cash, Shares, other securities or other property),
recapitalization, stock split, reverse stock split, reorganization, merger, consolidation,
split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other securities of the Company
or other similar corporate transaction or event affects the Shares such that an adjustment is
determined by the Committee to be appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan, then the Committee
shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of
Shares (or other securities or other property) which thereafter may be made the subject of Awards,
(ii) the number and type of Shares (or other securities or other property) subject to outstanding
Awards and (iii) the purchase or exercise price with respect to any Award; provided,

5

 

however, that the number of Shares covered by any Award or to which such Award relates shall always
be a whole number.

Section 5. Eligibility of Key Employees.

     Any Key Employee, including any Key Employee who is an officer or director of the Company or
any Subsidiary, shall be eligible to be designated a Participant; provided, however, a director of
the Company who is not also an employee of the Company or a Subsidiary shall not be designated as
an Participant. In determining which Key Employees shall receive an Award and the terms of any
Award, the Committee may take into account the nature of the services rendered by the respective
Key Employees, their present and potential contributions to the success of the Company or such
other factors as the Committee, in its sole discretion, shall deem relevant. Notwithstanding the
foregoing, an Incentive Stock Option may only be granted to full or part-time employees (which term
as used herein includes, without limitation, officers and directors who are also employees) of the
Company and its Subsidiaries.

Section 6. Awards.

     (a) Options. The Committee is hereby authorized to grant Options to Participants with
the following terms and conditions and with such additional terms and conditions not inconsistent
with the provisions of the Plan as the Committee shall determine, which terms and conditions shall
be set forth in a form approved by the Committee.

          (i) Exercise Price. The exercise price per Share purchasable under an Option shall be
determined by the Committee; provided, however, that, the exercise price of an Option shall not be
less than 100% of the Fair Market Value of a Share on the date of grant of such Option (110% in the
case of an Incentive Stock Option granted to a Ten-Percent Stockholder); provided, further, that
the aggregate Fair Market Value, determined at the time an Incentive Stock Option is granted, of
the Shares with respect to which Incentive Stock Options may be exercisable for the first time by
an employee Participant in any calendar year under all plans of the Company and any parent
corporation of the Company and any Subsidiary shall not exceed $100,000.

          (ii) Option Term. The term of each Option shall be for a period of ten years from the date of
grant of any Incentive Stock Option (5 years in the case of an Incentive Stock Option granted to a
Ten-Percent Stockholder) and ten years and three months from the date of grant of a Non-Qualified
Stock Option, unless an earlier expiration date shall be stated in the Option or the Option shall
cease to be exercisable pursuant to this Section 6. If an employee Participant’s employment with
the Company and all Subsidiaries terminates other than by reason of such Participant’s death, Total
Disability or Retirement, the Participant’s Option shall terminate and cease to be exercisable upon
termination of employment, unless the Committee shall determine otherwise.

          (iii) Time and Method of Exercise. The Committee shall determine the time or times at which an
Option may be exercised in whole or in part and the method or methods by which, and the form or
forms (including, without limitation, cash, Shares, promissory notes, other securities, other
Awards or other property, or any combination thereof, having a Fair Market Value on the

6

 

exercise date equal to the relevant exercise price) in which, payment of the exercise price with
respect thereto may be made or deemed to have been made. The Committee may also permit the holders
of Options, in accordance with such procedures as the Committee may in its sole discretion
establish, including those set forth in Section 6(g) hereof, to exercise Options and sell Shares
acquired pursuant to a brokerage or similar arrangement approved in advance by the Committee, and
to use the proceeds from such sale as payment of the exercise price of such Options.

          (iv) Restoration Options. The Committee may grant Restoration Options, separately or together
with another Option, pursuant to which, subject to the terms and conditions established by the
Committee and any applicable requirements of Rule 16b-3 or any other applicable law, the
Participant would be granted a new Option when the payment of the exercise price of the Option to
which such Restoration Option relates is made by the delivery of Shares owned by the Participant
pursuant to the relevant provisions of the Plan or agreement relating to such Option, which new
Option would be an Option to purchase the number of Shares not exceeding the sum of (A) the number
of Shares so provided as consideration upon the exercise of the previously granted Option to which
such Restoration Option relates and (B) the number of Shares, if any, tendered or withheld as
payment of the amount to be withheld under applicable tax laws in connection with the exercise of
the Option to which such Restoration Option relates pursuant to the relevant provisions of the Plan
or agreement relating to such Option. Restoration Options may be granted with respect to Options
previously granted under the Plan or any other stock option plan of the Company, and may be granted
in connection with any Option granted under the Plan or any other stock option plan of the Company
at the time of such grant; provided, however, that Restoration Options may not be granted with
respect to any Option granted to a Non-employee Director under any other stock option plan of the
Company.

          (v) Incentive and Non-Qualified Stock Options. Each Option granted pursuant to the Plan shall
specify whether it is an Incentive Stock Option or a Non-Qualified Stock Option, provided that the
Committee may in the case of the grant of an Incentive Stock Option give the Participant the right
to receive in its place a Non-Qualified Stock Option.

     (b) Stock Appreciation Rights. The Committee is hereby authorized to grant Stock
Appreciation Rights to Participants subject to the terms of the Plan and any applicable Award
Agreement. A Stock Appreciation Right granted under the Plan shall confer on the holder thereof a
right to receive upon exercise thereof the excess of (i) the Fair Market Value of one Share on the
date of exercise (or, if the Committee shall so determine, at any time during a specified period
before or after the date of exercise) over (ii) the grant price of the Stock Appreciation Right as
specified by the Committee, which price shall not be less than 100% of the Fair Market Value of one
Share on the date of grant of the Stock Appreciation Right. Subject to the terms of the Plan and
any applicable Award Agreement, the grant price, term, methods of exercise, dates of exercise,
methods of settlement and any other terms and conditions of any Stock Appreciation Right shall be
as determined by the Committee. The Committee may impose such conditions or restrictions on the
exercise of any Stock Appreciation Right as it may deem appropriate.

7

 

     (c) Restricted Stock and Restricted Stock Units. The Committee is hereby authorized to
grant Awards of Restricted Stock and Restricted Stock Units to Participants with the following
terms and conditions and with such additional terms and conditions not inconsistent with the
provisions of the Plan as the Committee shall determine:

          (i) Restrictions. Shares of Restricted Stock and Restricted Stock Units shall be subject to
such restrictions as the Committee may impose (including, without limitation, any limitation on the
right to vote a Share of Restricted Stock or the right to receive any dividend or other right or
property with respect thereto), which restrictions may lapse separately or in combination at such
time or times, in such installments or otherwise as the Committee may deem appropriate (the
“Restricted Period”).

          (ii) Stock Certificates. Any Restricted Stock granted under the Plan shall be evidenced by
issuance of a stock certificate or certificates, which certificate or certificates shall be held by
the Company. Such certificate or certificates shall be registered in the name of the Participant
and shall bear an appropriate legend referring to the terms, conditions and restrictions applicable
to such Restricted Stock. Except as otherwise provided in this Section 6(c), no Shares of
Restricted Stock received by a Participant shall be sold, exchanged, transferred, pledged,
hypothecated or otherwise disposed of during the Restricted Period. In the case of Restricted Stock
Units, no Shares shall be issued at the time such Awards are granted.

          (iii) Forfeiture; Delivery of Shares. Except as otherwise determined by the Committee, upon
termination of a Participant’s employment (as determined under criteria established by the
Committee) during the applicable Restricted Period, all Shares of Restricted Stock and all
Restricted Stock Units held by such Participant at such time subject to restriction shall be
forfeited and reacquired by the Company; provided, however, that in the cases of death, Total
Disability or Retirement, or in circumstances where the Committee finds that a waiver would be in
the best interest of the Company, the Committee may waive in whole or in part any or all remaining
restrictions with respect to Shares of Restricted Stock or Restricted Stock Units. Any Share
representing Restricted Stock that is no longer subject to restrictions shall be delivered to the
holder thereof promptly after the applicable restrictions lapse or are waived. Upon the lapse or
waiver of restrictions and the restricted period relating to Restricted Stock Units evidencing the
right to receive Shares, such Shares shall be issued and delivered to the holders of the Restricted
Stock Units.

     (d) Performance Awards. The Committee is hereby authorized to grant Performance Awards
to Participants subject to the terms of the Plan and any applicable Award Agreement. A Performance
Award granted under the Plan (i) may be denominated or payable in cash, Shares (including, without
limitation, Restricted Stock), other securities, other Awards or other property and (ii) shall
confer on the holder thereof the right to receive payments, in whole or in part, upon the
achievement of such performance goals during such performance periods as the Committee shall
establish. Subject to the terms of the Plan and any applicable Award Agreement, the performance
goals to be achieved during any performance period, the length of any performance period, the
amount of any Performance Award granted, the amount of any payment or transfer to be made pursuant
to any Performance Award and any other terms and conditions of any Performance Award shall be
determined by the Committee.

8

 

     (e) Dividend Equivalents. The Committee is hereby authorized to grant to Participants
Dividend Equivalents under which such Participants shall be entitled to receive payments (in cash,
Shares, other securities, other Awards or other property as determined in the discretion of the
Committee) equivalent to the amount of cash dividends paid by the Company to holders of Shares with
respect to a number of Shares determined by the Committee. Subject to the terms of the Plan and any
applicable Award Agreement, such Dividend Equivalents may have such terms and conditions as the
Committee shall determine.

     (f) Other Stock-Based Awards. The Committee is hereby authorized to grant to
Participants such other Awards that are denominated or payable in, valued in whole or in part by
reference to, or otherwise based on or related to, Shares (including, without limitation,
securities convertible into Shares), as are deemed by the Committee to be consistent with the
purpose of the Plan; provided, however, that such grants must comply with applicable law and, in
the case of executive officers and directors of the Company, Rule 16b-3. Subject to the terms of
the Plan and any applicable Award Agreement, the Committee shall determine the terms and conditions
of such Awards. Shares or other securities delivered pursuant to a purchase right granted under
this Section 6(f) shall be purchased for such consideration, which may be paid by such method or
methods and in such form or forms (including without limitation, cash, Shares, promissory notes,
other securities, other Awards or other property or any combination thereof), as the Committee
shall determine, the value of which consideration, as established by the Committee, shall not be
less than 100% of the Fair Market Value of such Shares or other securities as of the date such
purchase right is granted.

     (g) General.

          (i) No Cash Consideration for Awards. Awards shall be granted for no cash consideration or for
such minimal cash consideration as may be required by applicable law.

          (ii) Awards May Be Granted Separately or Together. Awards may, in the discretion of the
Committee, be granted either alone or in addition to, in tandem with, or in substitution for, any
other Award or any award granted under any plan of the Company or any Subsidiary other than the
Plan. Awards granted in addition to or in tandem with other Awards or in addition to or in tandem
with awards granted under any such other plan of the Company or any Subsidiary may be granted
either at the same time as, or at a different time from, the grant of such other Awards or awards.

          (iii) Forms of Payment under Awards. Subject to the terms of the Plan and of any applicable
Award Agreement, payments or transfers to be made by the Company or a Subsidiary upon the grant,
exercise or payment of an Award may be made in such form or forms as the Committee shall determine
(including, without limitation, cash, Shares, promissory notes, other securities, other Awards or
other property or any combination thereof), and may be made in a single payment or transfer, in
installments or on a deferred basis, in each case in accordance with rules and procedures
established by the Committee. Such rules and procedures may include, without limitation, provisions
for the payment or crediting of reasonable interest on installment or deferred payments or the
grant or crediting of Dividend Equivalents with respect to installment or deferred payments.

9

 

          (iv) Cashless Exercise. Options may be exercised in whole or in part upon delivery to the
Secretary of the Company of an irrevocable written notice of exercise. The date on which such
notice is received by the Secretary shall be the date of exercise of the Option, provided that
within three business days of the delivery of such notice the funds to pay for exercise of the
Option are delivered to the Company by a broker acting on behalf of the optionee either in
connection with the sale of the Shares underlying the Option or in connection with the making of a
margin loan to the optionee to enable payment of the exercise price of the Option. In connection
with the foregoing, the Company will provide a copy of the notice of exercise of the Option to the
aforesaid broker upon receipt by the Secretary of such notice and will deliver to such broker,
within three business days of the delivery of such notice to the Company, a certificate or
certificates (as requested by the broker) representing the number of Shares underlying the Option
that have been sold by such broker for the optionee.

          (v) Limits on Transfer of Awards. No Award and no right under any such Award shall be
transferable by a Participant otherwise than by will, the laws of descent and distribution or
pursuant to a qualified domestic relations order as defined by the Code; provided, however, that,
if so determined by the Committee, a Participant may, in the manner established by the Committee,
designate a beneficiary or beneficiaries to exercise the rights of the Participant and receive any
property distributable with respect to any Award upon the death of the Participant. Each Award or
right under any Award shall be exercisable during the Participant’s lifetime only by the
Participant or, if permissible under applicable law, by the Participant’s guardian or legal
representative. No Award or right under any such Award may be pledged, alienated, attached or
otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance thereof shall
be void and unenforceable against the Company or any Subsidiary.

          (vi) Term of Awards. Unless otherwise expressly set forth in the Plan, the term of each Award
shall be for such period as may be determined by the Committee.

          (vii) Restrictions; Securities Listing. All certificates for Shares or other securities
delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such
stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or
the rules, regulations and other requirements of the Securities and Exchange Commission and any
applicable federal or state securities laws, and the Committee may cause a legend or legends to be
placed on any such certificates to make appropriate reference to such restrictions. If the Shares
or other securities are traded on NASDAQ or a securities exchange, the Company shall not be
required to deliver any Shares or other securities covered by an Award unless and until such Shares
or other securities have been admitted for trading on NASDAQ or such securities exchange.

Section 7. Amendment and Termination; Adjustments.

     Except to the extent prohibited by applicable law and unless otherwise expressly provided in
an Award Agreement or in the Plan:

     (a) Amendments to the Plan. The Board of Directors of the Company may amend, alter,
suspend, discontinue or terminate the Plan; provided, however, that, notwithstanding any other

10

 

provision of the Plan or any Award Agreement, without the approval of the stockholders of the
Company, no such amendment, alteration, suspension, discontinuation or termination shall be made
that, absent such approval;

          (i) would violate the rules or regulations of NASDAQ or any securities exchange that are
applicable to the Company; or

          (ii) would cause the Company to be unable, under the Code, to grant Incentive Stock Options
under the Plan.

     (b) Amendments to Awards. The Committee may waive any conditions of or rights of the
Company under any outstanding Award, prospectively or retroactively. The Committee may not amend,
alter, suspend, discontinue or terminate any outstanding Award, prospectively or retroactively,
without the consent of the Participant or holder or beneficiary thereof, except as otherwise herein
provided (for clarification purposes, in no event shall the consent
of the participant or holder or beneficiary be required in order for
the Committee to effectuate a “lock-up”).

     (c) Correction of Defects, Omissions and Inconsistencies. The Committee may correct
any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the
manner and to the extent it shall deem desirable to carry the Plan into effect.

Section 8. Income Tax Withholding; Tax Bonuses.

     (a) Withholding. In order to comply with all applicable federal or state income tax
laws or regulations, the Company may take such action as it deems appropriate to ensure that all
applicable federal or state payroll, withholding, income or other taxes, which are the sole and
absolute responsibility of a Participant, are withheld or collected from such Participant. In order
to assist a Participant in paying all or a portion of the federal and state taxes to be withheld or
collected upon exercise or receipt of (or the lapse of restrictions relating to) an Award, the
Committee, in its discretion and subject to such additional terms and conditions as it may adopt,
may permit the Participant to satisfy such tax obligation by (i) electing to have the Company
withhold a portion of the Shares otherwise to be delivered upon exercise or receipt of (or the
lapse of restrictions relating to) such Award with a Fair Market Value equal to the amount of such
taxes or (ii) delivering to the Company shares other than Shares issuable upon exercise or receipt
of (or the lapse of restrictions relating to) such Award with a Fair Market Value equal to the
amount of such taxes.

     (b) Tax Bonuses. The Committee, in its discretion, shall have the authority, at the
time of grant of any Award under this Plan or at any time thereafter, to approve cash bonuses to
designated Participants to be paid upon their exercise or receipt of (or the lapse of restrictions
relating to) Awards in order to provide funds to pay all or a portion of federal and state taxes
due as a result of such exercise or receipt (or the lapse of such restrictions). The Committee
shall have full authority in its discretion to determine the amount of any such tax bonus.

11

 

Section 9. General Provisions

     (a) No Rights to Awards. No Key Employee, Participant or other Person shall have any
claim to be granted any Award under the Plan, and there is no obligation for uniformity of
treatment of Key Employees, Participants or holders or beneficiaries of Awards under the Plan. The
terms and conditions of Awards need not be the same with respect to any Participant or with respect
to different Participants.

     (b) Award Agreements. No Participant will have rights under an Award granted to such
Participant unless and until an Award Agreement shall have been duly executed on behalf of the
Company.

     (c) No Limit on Other Compensation Arrangements. Nothing contained in the Plan shall
prevent the Company or any Subsidiary from adopting or continuing in effect other or additional
compensation arrangements, and such arrangements may be either generally applicable or applicable
only in specific cases.

     (d) No Right to Employment. The grant of an Award shall not be construed as giving a
Participant the right to be retained in the employ of the Company or any Subsidiary, nor will it
affect in any way the right of the Company or a Subsidiary to terminate such employment at any
time, with or without cause. In addition, the Company or a Subsidiary may at any time dismiss a
Participant from employment free from any liability or any claim under the Plan, unless otherwise
expressly provided in the Plan or in any Award Agreement.

     (e) Assignability. No Award granted under this Plan, nor any other rights acquired by
a Participant under this Plan, shall be assignable or transferable by a Participant, other than by
will or the laws of descent and distribution or pursuant to a qualified domestic relations order as
defined by the Code, Title I of the Employee Retirement Income Security Act, or the rules
promulgated thereunder.

     (f) Governing Law. The validity, construction and effect of the Plan or any Award, and
any rules and regulations relating to the Plan or any Award, shall be determined in accordance with
the laws of the State of Colorado.

     (g) Severability. If any provision of the Plan or any Award is or becomes or is deemed
to be invalid, illegal or unenforceable in any jurisdiction or would disqualify the Plan or any
Award under any law deemed applicable by the Committee, such provision shall be construed or deemed
amended to conform to applicable laws, or if it cannot be so construed or deemed amended without,
in the determination of the Committee, materially altering the purpose or intent of the Plan or the
Award, such provision shall be stricken as to such jurisdiction or Award, and the remainder of the
Plan or any such Award shall remain in full force and effect.

     (h) No Trust or Fund Created. Neither the Plan nor any Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship between the
Company or any Subsidiary and a Participant or any other Person. To the extent that any Person
acquires a right to receive payments from the Company or any Subsidiary pursuant to an Award, such
right shall be no greater than the right of any unsecured general creditor of the Company or any
Subsidiary.

12

 

     (i) No Fractional Shares. No fractional Shares shall be issued or delivered pursuant
to the Plan or any Award, and the Committee shall determine whether cash shall be paid in lieu of
any fractional Shares or whether such fractional Shares or any rights thereto shall be canceled,
terminated or otherwise eliminated.

     (j) Transfers and Leaves of Absence. Solely for the purposes of the Plan: (a) a
transfer of an employee Participant’s employment without an intervening period from the Company to
a Subsidiary or vice versa, or from one Subsidiary to another, shall not be deemed a termination of
employment, and (b) an employee Participant who is granted in writing a leave of absence shall be
deemed to have remained in the employ of the Company or a Subsidiary, as the case may be, during
such leave of absence.

     (k) Headings. Headings are given to the Sections and subsections of the Plan solely as
a convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

     (l) Replacement and Substitute Awards. Notwithstanding anything in this Plan to the
contrary, any Option or Award that is intended to be a Replacement or Substitute Award granted in
connection with the spin-off of the Company shall be subject to the same terms and conditions as
the original EchoStar award to which it relates; provided, however that such awards shall be
administered by the Committee. In this regard, all employment with EchoStar shall be taken into
account for purposes of determining the vesting and exercisability provisions of such Options
and/or Awards.

Section 10. Effective Date of the Plan.

     The Plan shall be effective as of [                    ], subject to approval by the stockholders of
the Company on or before that date or within one year thereafter.

Section 11. Term of the Plan.

     Unless the Plan shall have been discontinued or terminated as provided in Section 7(a), the
Plan shall terminate on [                    ]. No Award shall be granted after the termination of the
Plan. However, unless otherwise expressly provided in the Plan or in an applicable Award Agreement,
any Award theretofore granted may extend beyond the termination of the Plan, and the authority of
the Committee provided for hereunder with respect to the Plan and any Awards, and the authority of
the Board of Directors of the Company to amend the Plan, shall extend beyond the termination of the
Plan.

13

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