Document:

Exhibit 10(aa)(i)  

INFINITY BROADCASTING CORPORATION

1998 LONG-TERM INCENTIVE PLAN

(As amended as of May 3, 2000)  

ARTICLE I

GENERAL  

1.1    Purpose    

The
purposes of the 1998 Long-Term Incentive Plan, as amended from time to time (the "Plan"), for key personnel of Infinity Broadcasting Corporation ("Corporation") and its subsidiaries
(the Corporation and its subsidiaries severally and collectively referred to in the Plan as the "Company") are to foster and promote the long-term financial success of the Company and
materially increase stockholder value by (i) attracting and retaining key personnel of outstanding ability, (ii) strengthening the Company's capability to develop, maintain and direct a
competent management team, (iii) motivating key personnel, by means of performance-related incentives, to achieve long-range performance goals, (iv) providing incentive
compensation opportunities competitive with those of other major companies and (v) enabling key personnel to participate in the long-term growth and financial success of the
Company. 

1.2    Administration    

(a)  The
Plan will be administered by a committee of the Board of Directors of the Corporation ("Committee") which will consist of two or more members. Each member will be a
"non-employee director," as that term is defined by Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as such rule may
be amended, or any successor rule, and an "outside director," as that term is defined by Section 162(m) of the Internal Revenue Code of 1986, as amended. The members will be appointed by the
Board of Directors, and any vacancy on the Committee will be filled by the Board of Directors or in a manner authorized by the Board. 

(b)  Subject
to the limitations of the Plan, the Committee will have the sole and complete authority: (i) to select in accordance with Section 1.3 persons who will
participate in the Plan ("Participant" or "Participants") (including the right to delegate authority to select as Participants persons who are not required to file reports with respect to securities
of the Company pursuant to Section 16(a) of the Exchange Act ("Nonreporting Persons")); (ii) to make Awards and payments in such forms and amounts as it may determine (including the
right to delegate authority to make Awards to Nonreporting Persons within limits approved from time to time by the Committee), (iii) to impose such limitations, restrictions and conditions upon
such Awards as the Committee, or, with respect to Awards to Nonreporting Persons, the Committee's authorized delegates, deems appropriate; (iv) to interpret the Plan and the terms of any
document relating to the Plan and to adopt, amend and rescind administrative guidelines and other rules and regulations relating to the Plan; (v) to amend or cancel an existing Award in whole
or in part (including the right to delegate authority to amend or cancel an existing Award to a Nonreporting Person in whole or in part within limits approved from time to time by the Committee),
except that the Committee and its authorized delegates may not, unless otherwise provided in the Plan, or unless the Participant affected thereby consents, take any action under this clause that would
adversely affect the rights of such Participant with respect to the Award, and except that the Committee and its authorized delegates may not, unless otherwise provided in the Plan, take any action to
amend any outstanding Option under the Plan in order to decrease the Option Price under such Option; and (vi) to make all other determinations and to take all other actions necessary or
advisable for the interpretation, implementation and administration of the Plan. The Committee's determinations on matters within its authority will be conclusive and binding upon the Company and all
other persons. 

(c)  The
Committee will act with respect to the Plan on behalf of the Corporation and on behalf of any subsidiary issuing stock under the Plan, subject to appropriate action by the board
of directors of 

 

any such subsidiary. All expenses associated with the Plan will be borne by the Corporation subject to such allocation to its subsidiaries and operating units as it deems appropriate. 

1.3    Selection for Participation    

Participants
selected by the Committee (or its authorized delegates) must be Eligible Persons, as defined below. "Eligible Persons" are key persons who are officers or salaried employees of the
Company or its parent or their subsidiaries. Eligible Persons will also include independent contractors of the Company as to an Award if the person is an independent contractor at the time the Award
is granted. In making this selection and in determining the form and amount of Awards, the Committee may give consideration to the functions and responsibilities of the Eligible Person, his or her
past, present and potential contributions to the Company and such other factors as the Committee deems relevant. 

1.4    Types of Awards under Plan    

Awards
("Awards") under the Plan may be in the form of any one or more of the following: (i) Incentive Stock Options ("ISOs") and Non-statutory Stock options ("NSOs") (Incentive
Stock Options and Non-statutory Stock Options severally and collectively referred to in the Plan as "Options"), as described in Article II; (ii) Stock Appreciation Rights
("SARs") and Participant Limited Stock Appreciation Rights ("Participant Limited Rights"), as described in Article II; (iii) Performance Awards ("Performance Awards") as described in
Article IV; and (iv) Restricted Stock ("Restricted Stock") and Restricted Units ("Restricted Units"), each as described in Article V. 

1.5    Shares Subject to the Plan    

(a)  Shares
of stock issued under the Plan may be in whole or in part authorized and unissued or treasury shares of the Corporation's Class A Common Stock, par value $0.01 per share
("Common Stock"), or "Formula Value Stock" as defined in Section 8.12(d) (Common Stock and Formula Value Stock severally and collectively referred to in the Plan as "Stock"). 

(b)  The
maximum number of shares of Stock which may be issued for all purposes under the Plan (including but not limited to shares issued pursuant to the exercise of ISOs) will be
25,000,000, increased on January 1 of each calendar year from and including January 1, 2001 by 10,000,000 shares. The maximum number of such shares subject to options to purchase Stock,
SARs and Participant Limited Rights under the Plan awarded to any one Participant in any one calendar year may not exceed 3,500,000 shares plus unused share amounts that could have been awarded to
that Participant in previous calendar years. 

(c)  Except
as otherwise provided below, any shares of Stock subject to an Option or other Award which is canceled or terminates without any shares having been issued pursuant thereto
having been exercised will again be available for Awards under the Plan. Shares subject to an Option canceled upon the exercise of an SAR will not again be available for Awards under the Plan except
to the extent the SAR is settled in cash. To the extent that an Award is settled in cash, shares of Stock subject to that Award will again be available for Awards. Shares of Stock tendered by a
Participant or withheld by the Company to pay the exercise price of an Option or to satisfy the tax withholding obligations of the
exercise or vesting of an Award will be available again for Awards under the Plan. Shares of Restricted Stock forfeited to the Company in accordance with the Plan and the terms of the particular Award
will be available again for Awards under the Plan. 

(d)  No
fractional shares will be issued, and the Committee will determine the manner in which fractional share value will be treated. 

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ARTICLE II

STOCK OPTIONS  

2.1    Award of Stock Options    

(a)  The
Committee may, from time to time, subject to the provisions of the Plan and such other terms and conditions as the Committee may prescribe, award to any Participant ISOs and NSOs
to purchase Stock. 

(b)  The
Committee may provide with respect to any option to purchase Stock that, if the Participant, while an Eligible Person, exercises the option in whole or in part using already-owned
Stock, the Participant will, subject to this Section 2.1 and such other terms and conditions as may be imposed by the Committee, receive an additional option ("Reload Option"). The Reload
Option will be to purchase, at Fair Market Value as of the date the original option was exercised, a number of shares of Stock equal to the number of whole shares used by the Participant to exercise
the original option. The Reload Option will be exercisable only between the date of its grant and the date of expiration of the original option. 

(c)  A
Reload Option will be subject to such additional terms and conditions as the Committee may approve, which terms may provide that the Committee may cancel the Participant's right to
receive the Reload Option and that the Reload Option will be granted only if the Committee has not canceled such right prior to the exercise of the original option. Such terms may also provide that,
upon the exercise by a Participant of a Reload Option while an Eligible Person, an additional Reload Option will be granted with respect to the number of whole shares used to exercise the first Reload
Option. 

2.2    Stock Option Agreements    

The
award of an option will be evidenced by a written agreement ("Stock Option Agreement") in such form and containing such terms and conditions as the Committee may from time to time determine. The
Committee may also at any time and from time to time provide for the deferral of delivery of any shares for which the option may be exercisable until a specified date or dates and subject to terms and
conditions determined by the Committee. 

2.3    Option Price    

The
purchase price of Stock under each Option ("Option Price") will not be less than the Fair Market Value of such Stock on the date the Option is awarded. 

2.4    Exercise and Term of Options    

(a)  Except
as otherwise provided in the Plan, Options will become exercisable at such time or times as the Committee may specify. The Committee may at any time and from time to time
accelerate the time at which all or any part of the Option may be exercised. 

(b)  The
Committee will establish procedures governing the exercise of options and will require that notice of exercise be given. Stock purchased on exercise of an option must be paid for
as follows: (1) in cash or by check (acceptable to the Company in accordance with guidelines established for this purpose), bank draft or money order payable to the order of the Company or
(2) if so provided by the Committee (not later than the time of grant, in the case of an ISO) (i) through the delivery of shares of Stock which are then outstanding and which have a Fair
Market Value on the date of exercise equal to the exercise price, (ii) by delivery of an unconditional and irrevocable undertaking by a broker to deliver promptly to the Company sufficient
funds to pay the exercise price, or (iii) by any combination of the permissible forms of payment. 

2.5    Termination of Eligibility    

Unless
the Committee provides otherwise: (a) in the event the Participant is no longer an Eligible Person and ceased to be such as a result of termination of service to the Company with the
consent of 

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the Committee or as a result of his or her death, retirement or disability, each of his or her outstanding Options (whether held by the Participant or, if the Option is an NSO that has been
transferred to a Permissible Transferee (as defined in Section 8.12) in accordance with Section 8.1, by that Permissible Transferee) will be exercisable by the Participant (or his or her
legal representative or
designated beneficiary) or Permissible Transferee, as the case may be, to the extent that such Option was then exercisable, at any time prior to an expiration date established by the Committee at the
time of award, but in no event after such expiration date; and (b) if the Participant ceases to be an Eligible Person for any other reason, all of the Participant's then outstanding Options
(whether held by the Participant or, if the Option is an NSO that has been transferred to a Permissible Transferee in accordance with Section 8.1, by that Permissible Transferee) will terminate
immediately. 

2.6    Company Limited Rights    

(a)  If
so provided in the Stock Option Agreement, as it may be amended from time to time, in the event of a Change in Control (as defined in Article VII of the Plan), the Company
will have the right to cancel any portion of the Option (whether vested or nonvested) that remains unexercised on the date the Company exercises its Company Limited Right pursuant to this
Section 2.6 (or the entire Option if no part of the Option has yet been exercised) in exchange for a payment in cash of an amount equal to the number of shares of Common Stock as to which the
Option remains unexercised at the time the Company exercises such right multiplied by the excess of (a) the higher of (x) the Minimum Price Per Share (as defined below), or
(y) the highest reported closing sale price of a share of the Common Stock on the New York Stock Exchange at any time during the period beginning on the sixtieth (60th) day prior
to the date on which the Company exercises such right and ending on the date on which the Company exercises such right, over (b) the Option Price per share. 

(b)  For
purposes of this Section 2.6, unless otherwise provided in the relevant Stock Option Agreement, the term "Minimum Price Per Share" will mean the highest gross price (before
brokerage commissions and soliciting dealers' fees) paid or to be paid for a share of Common Stock (whether by way of exchange, conversion, distribution upon liquidation or otherwise) in any Change in
Control which is in effect at any time during the period beginning on the sixtieth (60th) day prior to the date on which the Company exercises such right and ending on the date on which
the Company exercises such right. For purposes of this definition, if the consideration paid or to be paid in any such Change in Control consists, in whole or in part, of consideration other than
cash, then the Board will take such action as in its judgment it deems appropriate to establish the cash value of such consideration. 

(c)  The
Company's right to cancel an Option pursuant to Section 2.6 may be exercised at any time until the end of the thirtieth (30th) day following the occurrence of the Change in
Control. 

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ARTICLE III

STOCK APPRECIATION RIGHTS AND LIMITED RIGHTS  

3.1    Award of Stock Appreciation Right    

(a)  An
SAR is an Award entitling the recipient on exercise to receive an amount, in cash or Stock or a combination thereof (such form to be determined by the Committee), determined in
whole or in part by reference to appreciation in Stock value. 

(b)  In
general, an SAR entitles the Participant to receive, with respect to each share of Stock as to which the SAR is exercised, the excess of the share's Fair Market Value on the date
of exercise over its Fair Market Value on the date the SAR was granted. 

(c)  SARs
may be granted in tandem with options granted under the Plan ("Tandem SARS") or independently of Options ("Independent SARs"). An SAR granted in tandem with an NSO may be granted
either at or after the time the Option is granted. An SAR granted in tandem with an ISO may be granted only at the time the Option is granted. 

(d)  SARs
awarded under the Plan will be evidenced by either a Stock Option Agreement (when SARs are granted in tandem with an Option) or a separate written agreement between the Company
and the Participant in such form and containing such terms and conditions as the Committee may from time to time determine. 

(e)  Except
as otherwise provided herein, a Tandem SAR will be exercisable only at the same time and to the same extent and subject to the same conditions as the Option related thereto is
exercisable, and the Committee may prescribe additional conditions and limitations on the exercise of the SAR. The exercise of a Tandem SAR will cancel the related Option. Tandem SARs may be exercised
only when the Fair Market Value of Stock to which it relates exceeds the Option Price. 

(f)    Except
as otherwise provided herein, an Independent SAR will become exercisable at such time or times, and on such conditions, as the Committee may specify, and the Committee may at
any time accelerate the time at which all or any part of the SAR may be exercised. 

The
Committee may provide, under such terms and conditions as it may deem appropriate, for the automatic grant of additional SARs upon the full or partial exercise of an Independent SAR. 

Any
exercise of an Independent SAR must be in writing, signed by the proper person and delivered or mailed to the Company, accompanied by any other documents required by the Committee. 

(g)  Except
as otherwise provided herein, all SARs will automatically be exercised on the last trading day prior to the expiration date established by the Committee at the time of the
award for the SAR, or, in the case of a Tandem SAR, for the related Option, so long as exercise on such date will result in a payment to the Participant. 

(h)  Unless
otherwise provided by the Committee, no SAR will become exercisable or will be automatically exercised for six months following the date on which it was granted or the
effective date of the Plan, whichever is later. 

(i)    At
the time of award of an SAR, the Committee may limit the amount of the payment that may be made to a Participant upon the exercise of the SAR. The Committee may further determine
that, if the amount to be received by a Participant in any year is limited pursuant to this provision, payment of all or a portion of the amount that is unpaid as a result of the limitation may be
made to the Participant at a subsequent time. No such limitation will require a Participant to return to the Company any amount theretofore received by him or her upon the exercise of an SAR. 

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(j)    Payment
of the amount to which a Participant is entitled upon the exercise of an SAR will be made in cash, Stock, or partly in cash and partly in Stock, as the Committee may
determine. To the extent that payment is made in Stock, the shares will be valued at their Fair Market Value on the date of exercise of the SAR. The Committee may also at any time and from time to
time provide for the deferral of delivery of any shares and/or cash for which the SAR may be exercisable until a specified date or dates and subject to terms and conditions determined by the
Committee. 

(k)  Unless
otherwise determined by the Committee, each SAR will expire on the first to occur of the following: (i) the expiration date set by the Committee at the time of an award
of an SAR, (ii) in the case of a Tandem SAR, termination of the related option, (iii) expiration of a period of six months after the Participant's ceasing to be an Eligible Person as a
result of termination of service to the Company with the consent of the Committee or as a result of his or her death, retirement or disability, or (iv) the Participant ceasing to be an Eligible
Person for any other reason. 

3.2    Participant Limited Rights    

(a)  The
Committee may award Participant Limited Rights pursuant to the provisions of this Section 3.2 to the holder of an Option to purchase Common Stock granted under the Plan (a
"Related Option") with respect to all or a portion of the shares subject to the Related Option. A Participant Limited Right may be exercised only during the period beginning on the first day following
a Change in Control, as defined in Article VII of the Plan, and ending on the thirtieth day following such date. Each Participant Limited Right will be exercisable only to the same extent that
the Related Option is exercisable, and in no event after the termination of the Related Option. Participant Limited Rights will be exercisable only when the Fair Market Value (determined as of the
date of exercise of the Participant Limited Rights) of each share of Common Stock with respect to which the Participant Limited Rights are to be exercised exceeds the Option Price per share of Common
Stock subject to the Related option. 

(b)  Upon
the exercise of Participant Limited Rights, the Related Option will be considered to have been exercised to the extent of the number of shares of Common Stock with respect to
which such Participant Limited Rights are exercised. Upon the exercise or termination of the Related Option, the Participant Limited Rights with respect to such Related Option will be considered to
have been exercised or terminated to the extent of the number of shares of Common Stock with respect to which the Related Option was so exercised or terminated. 

(c)  The
effective date of the grant of a Participant Limited Right will be the date on which the Committee approves the grant of such Participant Limited Right. Each grantee of a
Participant Limited Right will be notified promptly of the grant of the Participant Limited Right in such manner as the Committee prescribes. 

(d)  Upon
the exercise of Participant Limited Rights, the holder thereof will receive in cash an amount equal to the product computed by multiplying (i) the excess of (a) the
higher of (x) the Minimum Price Per Share (as hereinafter defined), or (y) the highest reported closing sales price of a share of Common Stock on the New York Stock Exchange at any time
during the period beginning on the sixtieth day prior to the date on which such Participant Limited Rights are exercised and ending on the date on which such Participant Limited Rights are exercised,
over (b) the Option Price per share of Common Stock subject to the Related Option, by (ii) the number of shares of Common Stock with respect to which such Participant Limited Rights are
being exercised. 

(e)  For
purposes of this Section 3.2, the term "Minimum Price Per Share" will mean the highest gross price (before brokerage commissions and soliciting dealers' fees) paid or to be
paid for a share of Common Stock (whether by way of exchange, conversion, distribution upon liquidation or otherwise) in any Change in Control which is in effect at any time during the period
beginning on the sixtieth day prior to the date on which such Participant Limited Rights are exercised and ending on the date on which such Participant Limited Rights are exercised. For purposes of
this definition, if the 

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consideration paid or to be paid in any such Change in Control will consist, in whole or in part, of consideration other than cash, the Board will take such action, as in its judgment it deems
appropriate, to establish the cash value of such consideration. 

ARTICLE IV

PERFORMANCE AWARDS  

4.1    Nature of Performance Awards    

A
Performance Award provides for the recipient to receive an amount in cash or Stock or a combination thereof (such form to be determined by the Committee) following the attainment of Performance
Goals. Performance Goals may be related to personal performance, corporate performance (including corporate stock performance), departmental performance or any other category of performance deemed by
the Committee to be important to the success of the Company or may be related to the occurrence of any triggering event or events that the Committee may deem appropriate. The Committee will determine
the Performance Goals, the period or periods during which performance is to be measured or otherwise determined and all other terms and conditions applicable to the Award. Regardless of the degree to
which Performance Goals are attained, a Performance Award will be paid only when, if and to the extent that the Committee determines to make such payment. 

4.2    Other Awards Subject to Performance Condition    

The
Committee may, at the time any Award described in this Plan is granted, impose the condition (in addition to any conditions specified or authorized in the Plan) that Performance Goals be met prior
to the Participant's realization of any payment or benefit under the Award. 

ARTICLE V

RESTRICTED STOCK AND RESTRICTED UNITS  

5.1    Awards of Restricted Stock and Restricted Units    

(a)  The
Committee may award to any Participant shares of Stock subject to this Article V and such other terms and conditions as the Committee may prescribe, such Stock referred to
herein as "Restricted Stock." Each certificate for Restricted Stock will be registered in the name of the Participant and deposited by him or her, together with a stock power endorsed in blank, with
the Corporation. 

(b)  The
Committee may also award to any Participant Restricted Units subject to this Article V and such other terms and conditions as the Committee may prescribe. For purposes
hereof, a "Restricted Unit" will mean any award of a contractual right granted under this Article V to receive Stock (or, at the discretion of the Committee, cash in an amount based on the Fair
Market Value of the Stock, or a combination of Stock and cash) which would become vested and nonforfeitable, in whole or in part, upon the completion of such period of service as may be determined by
the Committee. 

5.2    Restricted Stock/Restricted Unit Agreement    

Awards
of Restricted Stock and Restricted Units under the Plan will be evidenced by a written agreement in such form and containing such terms and conditions as the Committee may determine. 

5.3    Restriction Period; Dividend Equivalents    

(a)  At
the time of award of Restricted Stock or Restricted Units, there will be established for each Participant a "Restriction Period" of such length as the Committee determines. The
Restriction Period may be waived by the Committee. Shares of Restricted Stock and Restricted Units may not be sold, assigned, transferred, pledged or otherwise encumbered, except as hereinafter
provided. 

(b)  Subject
to such restrictions on transfer, the Participant as owner of such shares of Restricted Stock will have the rights of the holder of such Restricted Stock, except that the
Committee may provide at 

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the time of the Award that any dividends or other distributions paid with respect to such Stock during the Restriction Period will be accumulated and held by the Company and will be subject to the
same forfeiture provisions and the same restrictions on transfer as apply to the shares of Restricted Stock with respect to which they were paid. 

(c)  Upon
the expiration or waiver by the Committee of the Restriction Period and the satisfaction (as determined by the Committee) of any other conditions determined by the Committee,
restrictions applicable to the Restricted Stock or Restricted Units will lapse and the Corporation will, in the case of Restricted Stock, redeliver to the Participant (or his or her legal
representative or designated beneficiary) the shares deposited pursuant to Section 5.1 free and clear of all restrictions except as may be imposed by law and, in the case of Restricted Units,
will pay out such units as provided in the Restricted Unit Agreement. 

5.4    Termination of Eligibility    

(a)  Unless
otherwise determined by the Committee, in the event the Participant is no longer an Eligible Person and ceased to be such as a result of termination of service to the Company
with the consent of the Committee, or as a result of his or her death, retirement or disability, the restrictions imposed under this Article V will lapse with respect to such number of the
shares of Restricted Stock and with respect to such number of Restricted Units previously awarded to him or her as may be determined by the Committee. All other shares of Restricted Stock and
Restricted Units previously awarded to him or her which are still subject to restrictions, along with any dividends or other distributions thereon that have been accumulated and held by the Company,
will be forfeited, and in the case of Restricted Stock, the Corporation will have the right to complete the blank stock power. 

(b)  Unless
otherwise determined by the Committee, in the event the Participant ceases to be an Eligible Person for any other reason, all shares of Restricted Stock and all Restricted
Units previously awarded to him or her which are still subject to restrictions, along with any dividend or other distributions on Restricted Stock that have been accumulated and held by the Company,
will be forfeited, and, in the case of Restricted Stock, the Corporation will have the right to complete the blank stock power. 

5.5    Dividend Equivalents    

The
Committee will determine whether and to what extent, if any, to credit to the account of, or to pay currently to, each recipient of Restricted Units, an amount equal to any dividends or other
distributions paid during the Restriction Period with respect to the corresponding number of shares of Stock covered thereby ("Dividend Equivalent"). To the extent provided by the Committee at or
after the date of grant, any Dividend Equivalents with respect to cash dividends on the Stock credited to a Participant's account will be deemed to have been invested in shares of Stock on the record
date established for the related dividend and, accordingly, a number of additional Restricted Units shall be credited to such Participant's account equal to the greatest whole number which may be
obtained by dividing (x) the value of such Dividend Equivalent on the record date by (y) the Fair Market Value of a share of Stock on such date. 

ARTICLE VI

DEFERRAL OF PAYMENTS  

6.1    Deferral of Amounts    

(a)  If
the Committee makes a determination to designate Awards or, from time to time, groups or types of Awards, eligible for deferral hereunder, a Participant may, subject to such terms
and conditions and within such limits as the Committee may from time to time establish, elect to defer the receipt of
amounts due to him or her under the Plan. Amounts so deferred are referred to herein as "Deferred Amounts." The Committee may also permit amounts now or hereafter deferred or available 

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for deferral under any present or future incentive compensation program or deferral arrangement of the Company to be deemed Deferred Amounts and to become subject to the provisions of this Article.
Awards which are so deferred will be deemed to have been awarded in cash and the cash deferred as Deferred Amounts. 

(b)  The
period between the date on which the Participant's Deferred Amount would have been payable absent deferral and the final payment of such Deferred Amount will be referred to herein
as the "Deferral Period." 

6.2    Payment of Deferred Amounts    

Payment
of Deferred Amounts will be made on such terms and conditions as the Committee may determine and will be made at such time or times, and may be in cash, Stock, or partly in cash and partly in
Stock, as the Committee in its sole discretion may from time to time determine. 

ARTICLE VII

CHANGES IN CONTROL  

7.1    Effect of Change in Control    

Upon
the occurrence of a change in control (a) as defined in the relevant agreement for an Award or (b) as may be determined by the Committee (each of (a) and (b) a "Change
of Control"), then notwithstanding any other provisions of the Plan: 

(i)    if
so provided in the respective Stock Option Agreements, as they may be amended from time to time, Options and, subject to the exercise provisions of Section 3.2(a) of the
Plan, Participant Limited Rights, but not SARs, outstanding and unexercised on the date of the Change in Control will become immediately exercisable; 

(ii)  if
so provided in the respective Stock Option Agreements, as they may be amended from time to time, Company Limited Rights will become immediately exercisable; 

(iii)  Performance
Awards will be deemed to have been earned if so determined by the Committee and may be paid on such basis as the Committee may prescribe. 

(iv)  Restricted
Stock and Restricted Units may be deemed to be earned and the Restriction Period may be deemed to be expired on such terms and conditions as the Committee may determine;
and 

(v)  amounts
deferred under this Plan may be paid on such terms as the Committee determines. 

ARTICLE VIII

GENERAL PROVISIONS  

8.1    Non-Transferability    

No
Option, Participant Limited Right, SAR, Performance Award, Restricted Unit or share of Restricted Stock or Deferred Amount under the Plan will be transferable other than by will, by the applicable
laws of descent and distribution, or, if permitted by the Company, by transfer to a properly designated beneficiary in the event of death; provided, however, that the Committee may, in its sole
discretion, permit the transfer of an NSO Option (including any Tandem SARs or Participant Limited Rights but not any right to receive a Reload Option upon exercise of the NSO Option) by a Participant
to a Permissible Transferee (as defined in Section 8.12) subject to such terms and conditions as the Committee may, from time to time, determine. All Awards and Deferred Amounts will be
exercisable or received during the Participant's lifetime only by such Participant or his or her legal representative or, in the case of an NSO Option (including any Tandem SARs or Participant Limited
Rights) that has been transferred to a Permissible Transferee in accordance with this Section 8.1, by that Permissible Transferee. Any transfer contrary to this Section 8.1 will nullify
the option, Participant Limited Right, 

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SAR, Performance Award, Restricted Unit or share of Restricted Stock, and any attempted transfer of a Deferred Amount contrary to this Section 8.1 will be void and of no effect. 

8.2    Beneficiaries    

The
Committee may, but need not, establish or authorize the establishment of procedures not inconsistent with Section 8.1 under which a Participant may designate a beneficiary or beneficiaries
to hold, exercise and/or receive amounts due under an Award or with respect to Deferred Amounts in the event of the Participant's death. 

8.3    Adjustments Upon Changes in Stock    

If
there is any change in the Stock and/or the corporate structure of the Company, through merger, consolidation, reorganization, recapitalization, stock dividend, stock split, split up, dividend in
kind or other change in the corporate structure or distribution to the stockholders, appropriate adjustments may be made by the Board of Directors of the Company (or if the Company is not the
surviving corporation in any such transaction, the board of directors of the surviving corporation) in the aggregate number and kind of shares subject to the Plan, and the number and kind of shares
and the price per share subject to outstanding Options or which may be issued under outstanding Performance Awards or Awards of Restricted Stock. Appropriate adjustments may also be made by the Board
of Directors or the Committee in the terms of any Awards under the Plan to reflect such changes and to modify any other terms of outstanding Awards, including modifications of performance targets and
changes in the length of Performance Periods. 

8.4    Conditions of Awards    

(a)  Unless
the Committee determines otherwise, either by waiving the condition(s) or by limiting or otherwise amending the condition(s) with respect to any specified Award or group of
Awards, the rights of a Participant with respect to any Award received under this Plan will be subject to the conditions that, until the Participant has fully received all payments, transfers and
other benefits under the Award, he or she will (i) not engage, either directly or indirectly, in any manner or capacity as advisor, principal, agent, partner, officer, director, employee,
member of any association or otherwise, in any business or activity which is at the time competitive with any business or activity conducted by the Company and (ii) be available, unless he or
she has died, at reasonable times for consultations at the request of the Company's management with respect to phases of the business with which he or she is or was actively connected during the time
he or she was an officer, employee or independent contractor, but such consultations will not (except in the case of a Participant whose active service was outside the United States) be required to be
performed at any place or places outside of the United States of America or during usual vacation periods or periods of illness or other incapacity. In the event that either of the above conditions is
applicable (or is applicable as modified by the Committee) and is not fulfilled, the Participant will forfeit all rights to any unexercised Option or SAR, or any Performance Award or Stock held which
has not yet been determined by the Committee to be payable or unrestricted (and any unpaid amounts equivalent to dividends or other distributions or amounts equivalent to interest relating thereto) as
of the date of the breach of condition. Any determination by the Board of Directors of the Corporation, which will act upon the recommendation of the Chief Executive Officer, that the Participant is,
or has, engaged in a competitive business or activity as aforesaid or has not been available for consultations as aforesaid or, if the Committee has modified such condition(s) with respect to the
Participant's Award, that the Participant has not complied with such condition(s) as modified by the Committee will be conclusive. 

(b)  This
Section 8.4 will not apply to Participant Limited Rights. 

8.5    Use of Proceeds    

All
cash proceeds from the exercise of Options will constitute general funds of the Company. 

10

 

8.6    Tax Withholding    

(a)  The
Company will collect, through withholding or otherwise, an amount sufficient to satisfy any applicable statutory federal, state and local withholding tax requirements (the
"withholding requirements") with respect to payments made pursuant to the Plan. 

(b)  In
the case of an Award pursuant to which Stock may be delivered, the Committee will have the right to require that the Participant or other appropriate person remit to the Company an
amount sufficient to satisfy any applicable statutory withholding requirements, or make other arrangements satisfactory to the Committee with regard to such requirements, prior to the delivery of any
Stock. If and to the extent that such withholding is required, the Committee may permit the Participant or such other person to elect at such time and in such manner as the Committee provides to have
the Company hold back from the shares to be delivered, or to deliver to the Company, Stock having a value calculated to satisfy the statutory withholding requirement. In the alternative, the Committee
may, at the time of grant of any such Award, require that the Company withhold from any shares to be delivered Stock with a value calculated to satisfy any applicable statutory tax withholding
requirements. 

(c)  If
at the time an ISO is exercised the Committee determines that the Company could be liable for statutory withholding requirements with respect to a disposition of the Stock received
upon exercise, the Committee may require as a condition of exercise that the person exercising the ISO agree (i) to inform the Company promptly of any disposition of Stock received upon
exercise, and (ii) to give such security as the Committee deems adequate to meet the potential liability of the Company for the statutory withholding requirements and to augment such security
from time to time in any amount reasonably deemed necessary by the Committee to preserve the adequacy of such security. 

8.7    Non-Uniform Determinations    

The
Committee's determinations under the Plan, including without limitation, (i) the determination of the Participants to receive Awards, (ii) the form, amount, timing and payment of
such Awards, (iii) the terms and provisions of such Awards and (iv) the agreements evidencing the same, need not be uniform and may be made by it selectively among Participants who
receive, or who are eligible to receive, Awards under the Plan, whether or not such Participants are similarly situated. 

8.8    Leaves of Absence; Transfers    

The
Committee will be entitled to make such rules, regulations and determinations as it deems appropriate under the Plan with respect to any leave of absence from the Company granted to a Participant.
Without limiting the generality of the foregoing, the Committee will be entitled to determine (i) whether or not any such leave of absence will be treated as if the Participant ceased to be an
Eligible Person and (ii) the impact, if any, of any such leave of absence on Awards under the Plan. In the event a Participant transfers within the Company, such Participant will not be deemed
to have ceased to be an Eligible Person for purposes of the Plan. 

8.9    General Restriction    

(a)  Each
Award under the Plan will be subject to the condition that, if at any time the Committee determines that (i) the listing, registration or qualification of shares of Stock
upon any securities exchange or under any state or federal law, (ii) the consent or approval of any government or regulatory body or (iii) an agreement by the Participant with respect
thereto, is necessary or desirable, then such Award will not be consummated in whole or in part unless such listing, registration, qualification, consent, approval or agreement has been effected or
obtained free from any conditions not acceptable to the Committee. 

(b)  Shares
of Common Stock for use under the provisions of this Plan will not be issued until they have been duly listed, upon official notice of issuance, upon the New York Stock
Exchange and such 

11

 

other exchanges, if any, as the Board of Directors of the Corporation determines, and a registration statement under the Securities Act of 1933 with respect to such shares has become, and is,
effective. 

8.10    Effective Date    

(a)  The
Plan is effective on December 7, 1998, as amended. 

(b)  No
Award may be granted under the Plan after December 6, 2008, but Awards previously made may extend beyond that date and Reload Options and additional Reload Options provided
for with respect to original options outstanding prior to that date may continue unless the Committee otherwise provides and subject to such additional terms and conditions as the Committee may
provide except that all Reload Options issued after that date will be NSOs, and the provisions of Article VI of the Plan will survive and remain effective as to all present and future Deferred
Amounts until such later date as the Committee or the Board of Directors may determine. 

(c)  The
adoption of the Plan will not preclude the adoption by appropriate means of any other stock option or other incentive plan for officers or employees. 

8.11    Amendment, Suspension and Termination of Plan    

The
Board of Directors or the Committee may at any time or times amend the Plan for any purpose which may at the time be permitted by law, or may at any time suspend or terminate the Plan as to any
further grants of Awards. 

8.12    Certain Definitions    

(a)  The
terms "retirement" and "disability" as used under the Plan will have the meanings determined from time to time by the Committee. 

(b)  The
term "Fair Market Value" as it relates to Common Stock means the average of the high and low prices of the Common Stock as reported by the Composite Tape of the New York Stock
Exchange (or such successor reporting system as the Committee may select) on the relevant date or, if no sale of the Common Stock has been reported for that day, the average of such prices on the next
preceding day and the next following day for which there were reported sales. The term "Fair Market Value" as it relates to Formula Value Stock will mean the value determined by the Committee. 

(c)  "subsidiary"
means any corporation, partnership or other entity of which shares of voting stock sufficient to elect a majority of the Board of Directors, or other persons performing
similar functions, is owned by the Corporation, either directly or indirectly through one or more subsidiaries. 

(d)  "Formula
Value Stock" means shares of a class or classes of stock the value of which is derived from a formula established by the Committee which reflects such financial measures as
the Committee may determine. Such shares will have such other characteristics as may be determined at time of their authorization. 

(e)  Unless
otherwise determined by the Committee, "Permissible Transferee" means any of the following: (1) a member of the Participant's Immediate Family; (2) a trust solely
for the benefit of the Participant and/or the Participant's Immediate Family; and (3) a partnership or limited liability company whose only partners or members, as the case may be, are the
Participant and/or Permissible Transferees of the Participant as otherwise identified in this definition. "Immediate Family" has the meaning set forth in Rule 16a-1(e) under the
Exchange Act, as such rule may be amended from time to time, or any successor rule. 

8.13    Governing Law.    

The
Plan and all agreements or other documents relating to the Plan will be construed in accordance with and governed by the laws of the State of Delaware, without regard to the principles of conflict
of laws. 

12Exhibit 10(aa)(ii)  

INFINITY BROADCASTING CORPORATION

STOCK PLAN FOR DIRECTORS  

(Effective as of February 24, 2000)  

 Section 1.    Introduction  

1.1    Establishment.    Infinity Broadcasting Corporation, a Delaware corporation (the "Company"), has established the Infinity
Broadcasting Corporation Stock Plan for Directors, as such plan may be amended from time to time (the "Plan"), for those directors of the Company who are neither officers (other than
non-executive officers) nor employees of the Company. The Plan provides, among other things, for the payment of Director compensation, including Board Chairman compensation and
compensation for other special services as a Director, if any, in the form of Stock Options and Restricted Stock and the opportunity for the Directors to defer receipt of all or a part of their cash
compensation. Unless otherwise provided for herein, the term Company includes Infinity Broadcasting Corporation and its subsidiaries. 

1.2    Purposes.    The purposes of the Plan are to encourage the Directors to own shares of the Company's stock and thereby to
align their interests more closely with the interests of the other shareholders of the Company, to encourage the highest level of Director performance, and to provide a financial incentive that will
help attract and retain the most qualified Directors. 

1.3    Director Compensation.    Directors will not be compensated for their services as directors for 1998. Thereafter, Directors
will receive such compensation in such form, which may include cash, equity or any combination thereof, as the Board or the Committee may from time to time determine. For 1999, unless and until the
Board or the Committee determines otherwise, Directors will receive an annual director's fee of $30,000 in cash (which will not be eligible for deferral under the Plan) and a grant of stock options
for 4,500 shares of Stock pursuant to Section 6. Beginning in calendar year 2000, unless the Board or the Committee determines otherwise, Directors will receive an annual director's fee of
$60,000 payable as follows: $30,000 in cash and a grant of $30,000 in Stock Options pursuant to Section 6. Such fee may be prorated for Directors serving for less than the full year, but only
to the extent, if any, so determined by the Company. Directors will also be reimbursed for their out-of-pocket expenses incurred in attending Board and committee meetings. 

Section 2.    Definitions  

2.1    Definitions.    The following terms will have the meanings set forth below: 

(a)    "Board" means the Board of Directors of the Company. 

(b)    "Board Chairman" means the director who is the non-employee, non-executive chairman of the Board, if any. 

(c)    "Cause" means any act of (i) fraud or intentional misrepresentation or (ii) embezzlement, misappropriation or conversion
of assets or opportunities of the Company or any of its direct or indirect majority-owned subsidiaries. 

(d)    "CBS" means CBS Corporation. 

(e)    "CBS/Viacom Merger" means the merger of CBS Corporation and Viacom Inc. 

(f)    "Change in Control" will have the meaning assigned to it in Section 8.2. 

(g)    "Committee" means the Compensation Committee of the Board (or any subcommittee thereof) or any successor committee established by the
Board, or any subcommittee thereof, in each case consisting
of two or more members each of whom is a "non-employee director" as that term is defined by Rule 16b-3 under the Exchange
Act, as such rule may be amended, or any successor rule. 

(h)    "Continuing Directors" will have the meaning assigned to it in Section 8.2. 

 

(i)    "Deferral Account" means the account established by the Company in respect of each Director pursuant to Section 5.3(a) and to
which deferred cash compensation has been or will be credited pursuant to the Plan. 

(j)    "Director" means a member of the Board who is neither an officer nor an employee of the Company. For purposes of the Plan, an employee
is an individual whose wages are subject to the withholding of federal income tax under Section 3401 of the Internal Revenue Code, and an officer is an individual elected or appointed by the
Board or chosen in such other manner as may be prescribed in the By-laws of the Company to serve as such, other than a non-executive officer (such as the Board Chairman). 

(k)    "Eligible Director" means an individual who is director of either the Company or CBS Corporation, or both. 

(l)    "Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time. 

(m)    "Fair Market Value" means the mean of the high and low prices of the Stock as reported by the composite tape of the New York Stock
Exchange (or such successor reporting system as the Committee may select) on the relevant date or, if no sale of the Stock has been reported for that day, the average of such prices on the next
preceding day and the next following day for which there were reported sales. 

(n)    "Grant Date" means, as to a Stock Option Award, the date of grant pursuant to Section 6.1 and as to a Restricted Stock Award,
the date of grant pursuant to Section 7.1. 

(o)    "Grant Year" means, as to a particular award, the calendar year in which the award was granted. 

(p)    "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended from time to time. 

(q)    "Restricted Stock" means shares of Stock, or a contract right to receive shares of Stock at a later time, awarded to a Director
pursuant to Section 7 which would become vested and nonforfeitable, in whole or in part, upon the satisfaction of certain restrictions in accordance with the Plan. 

(r)    "Restricted Stock Award" means an award of shares of Restricted Stock or of a contract right to receive shares of Stock at a later time
granted to a Director pursuant to Section 7 of the Plan. 

(s)    "Stock" means the Class A Common Stock, $0.01 par value, of the Company. 

(t)    "Stock Option" means a non-statutory stock option to purchase shares of Stock for a purchase price per share equal to the
Exercise Price (as defined in Section 6.2(a)) in accordance with the provisions of the Plan. 

(u)    "Stock Option Award" means an award of Stock Options granted to a Director pursuant to Section 6 of the Plan. 

(v)    "Stock Option Value" means the value of a Stock Option for one share of Stock on the relevant date as determined by the Company using
the Black Scholes pricing model or any other reasonable method. 

(w)    "Stock Option Vesting Date" will have the meaning assigned to it in Section 6.2(c). 

2.2    Gender and Number.    Except when otherwise indicated by the context, the masculine gender will also include the feminine
gender, and the definition of any term herein in the singular will also include the plural. 

2

 

Section 3.    Plan Administration  

(a)    The
Plan will be administered by the Committee. The members of the Committee will be members of the Board appointed by the Board, and any vacancy on the Committee will be filled by
the Board or in a manner authorized by the Board. 

(b)    Subject
to the limitations of the Plan, the Committee and/or the Board, will have the sole and complete authority: (i) to impose such limitations, restrictions and conditions
upon such awards as it deems appropriate; (ii) to interpret the Plan and to adopt, amend and rescind administrative guidelines and other rules and regulations relating to the Plan; and
(iii) to make all other determinations and to take all other actions necessary or advisable for the implementation and administration of the Plan. The Committee's or the Board's determinations
on matters within its authority will be conclusive and binding upon the Company and all other persons. 

(c)    The
Company will be the sponsor of the Plan. All expenses associated with the Plan will be borne by the Company. 

Section 4.    Stock Subject to the Plan  

4.1    Number of Shares.    250,000 shares of Stock are authorized for issuance under the Plan in accordance with the provisions of
the Plan, subject to adjustment and substitution as set forth in this Section 4. This authorization may be increased from time to time by approval of the Board and, if such approval is
required, by the shareholders of the Company. The Company will at all times during the term of the Plan retain as authorized and unissued Stock at least the number of shares from time to time required
under the provisions of the Plan, or otherwise assure itself of its ability to perform its obligations hereunder. 

4.2    Other Shares of Stock.    Any shares of Stock that are subject to a Stock Option Award or a Restricted Stock Award and which
are forfeited for any reason, any shares of Stock that for any other reason are not issued to a Director, and any shares of Stock tendered by a Director to pay the Exercise Price of a Stock Option
will automatically become available again for use under the Plan if Rule 16b-3 under the Exchange Act, as such rule may be amended, or any successor rule, and interpretations
thereof by the Securities and Exchange Commission or its staff permit such share replenishment. 

4.3    Adjustments Upon Changes in Stock.    If there is any change in the Stock of the Company, through merger, consolidation,
division, share exchange, combination, reorganization, recapitalization, stock dividend, stock split, spin-off, split up, dividend in kind or other change in the corporate structure or
distribution to the shareholders, appropriate adjustments may be made by the Board or the Committee (or, if the Company is not the surviving corporation in any such transaction, the board of directors
of the surviving corporation) in the aggregate number and kind of shares subject to the Plan, and the number and kind of shares which may be issued under the Plan. Appropriate adjustments may also be
made by the Board or the Committee in the terms of any awards under the Plan to reflect such changes and to modify any other terms of outstanding awards on an equitable basis as the Board or the
Committee in its discretion determines. 

Section 5.    Deferral of Compensation  

5.1    Amount of Deferral.    Unless the Board or the Committee determines that a particular type or award of Director compensation
will not be deferrable under the Plan, either for a given year or years or in general, a Director may elect to defer receipt of all or a specified portion of the cash compensation otherwise payable to
the Director for services rendered to the Company in any capacity as a director. 

5.2    Manner of Electing Deferral.    A Director will make elections permitted hereunder by giving written notice to the Company
in a form approved by the Board or the Committee and in compliance with Section 5.4. The notice will include: (i) the percentage of cash compensation to be deferred, which 

3

 

amount must be stated in whole increments of five percent; and (ii) the time as of which deferral is to commence. 

5.3    Deferral Accounts.    

(a)    Deferral Accounts.    A Deferral Account has been or will be established for each Director electing to defer hereunder. Each
Deferral Account will be credited with the amounts deferred on the date such compensation would otherwise be payable and will be debited with the amount of any such compensation forfeited in
accordance with applicable Board policy, if any. 

(b)    Interest.    Unless otherwise determined by the Board or the Committee prior to the deferral date, amounts in a Deferral
Account will accrue interest from time to time at the Interest Credit Rate then in effect, compounded annually. The "Interest Credit Rate" will be reset by the Company on an annual basis in January of
the year, and will equal the then current one-year U.S. Treasury Bill rate or such other fixed rate as the Board or the Committee may from time to time determine. 

5.4    Time for Electing Deferral.    Any election to (i) defer cash compensation, (ii) alter the portion of such
amounts deferred, or (iii) revoke an election to defer such amounts, must be made prior to the time such compensation is earned by the Director and otherwise in compliance with any deadline
which the Company may from time to time impose and in the manner set forth in Section 5.2. 

5.5    Payment of Deferred Amounts.    Payments from a Deferral Account will consist of the deferred cash compensation and
accumulated interest in said account and, unless otherwise determined by the Board or the Committee prior to the time payments commence, will be made in five consecutive annual installments beginning
in the January following the date the Director ceases to be an Eligible Director. 

5.6    Payments to a Deceased Director's Estate.    In the event of a Director's death before the balance of his or her Deferral
Account is fully paid to the Director, payment of the balance of the Deferral Account will then be made to the beneficiary properly designated by the Director pursuant to Section 5.7, if any,
or to his or her estate in the absence of such a beneficiary designation, in the time and manner selected by the Board or the Committee. The Board or the Committee may take into account the
application of any duly appointed administrator or executor of a Director's estate and direct that the balance of the Director's Deferral Account be paid to his or her estate in the manner requested
by such application. 

5.7    Designation of Beneficiary.    A Director may designate a beneficiary in the event of the Director's death in a form
approved by the Company. 

Section 6.    Stock Option Awards  

6.1    Grants of Stock Option Awards.    

(a)    General Stock Option Grants.    The Board or the Committee may, from time to time, grant Stock Option Awards to one or more
Directors or to the Board Chairman, if any, for such number of shares as the Board or the Committee may determine as all or a portion of the annual director's fee or the Board Chairman's fee, if any,
for a given year or years, or as compensation for special services outside of the scope of normal Board, committee or Board Chairman activities, or as additional compensation to such Director or
Directors or to such Board Chairman, if any, for their services as such. 

(b)    Certain Annual Director's Fee Grants.    In the event that the Board or the Committee determines that a percentage of the
value of the annual director's fee for a given year or years (which may be prorated
for Directors serving less than a full year) will be in the form of a Stock Option Award, then, unless the Board or the Committee determines otherwise: (i) such Stock Options will be granted
automatically on the last Wednesday in January of such year to each Director in office on such Grant Date, or, if a person joins the Board or otherwise first becomes a Director at any time after the
last Wednesday in January of a given calendar year, on the last Wednesday of the calendar month in which 

4

 

such person first becomes a Director (or in the next following calendar month if such person first becomes a Director after the last Wednesday of the month); and (ii) the total number of
shares of Stock subject to any such Stock Option Award will be the number of shares determined by dividing the amount of the annual director's fee to be paid in the form of a Stock Option Award by the
Stock Option Value on the Grant Date, rounded up to the nearest whole share. 

(c)    Adjustments.    All Stock Options granted pursuant to Section 6.1 are subject to adjustment as provided in
Section 4.3. 

6.2    Terms and Conditions of Stock Options.    Unless otherwise determined by the Board or the Committee, Stock Options granted
under the Plan will be subject to the following terms and conditions: 

(a)    Exercise Price.    The purchase price per share at which a Stock Option may be exercised ("Exercise Price") will be equal to
the Fair Market Value of a share of Stock on the Grant Date. Notwithstanding anything herein to the contrary, in no event may the Board or the Committee establish an Exercise Price that is less than
the Fair Market Value of a share of Stock on the Grant Date. 

(b)    Exercisability.    Subject to the terms and conditions of the Plan and of the agreement referred to in Section 6.2(j),
a Stock Option may be exercised in whole or in part as to any shares as to which it has become exercisable ("vested") upon notice of exercise to the Company commencing on the Option Vesting Date, as
set forth in Section 6.2(c), for such Stock Option shares and thereafter until the Stock Option terminates. During a Director's lifetime, a Stock Option may be exercised only by the Director or
the Director's guardian or legal representative. 

(c)    Vesting of Stock Option Awards.  

(1)    To the extent otherwise outstanding, Stock Options will become exercisable ("vest") as to shares as follows ("Stock Option Vesting Date or Dates"): 

(i)    except
as otherwise provided pursuant to Section 6.2(c)(1)(ii), (iii) or (iv), and provided that the Director is an Eligible Director on each respective Stock Option
Vesting Date: 

(a)    one-third
of the Stock Option shares (rounded down to the nearest whole share) will become exercisable commencing on January 1 of the calendar year next following
the Grant Year; 

(b)    one-half
of the remaining Stock Option shares (rounded down to the nearest whole share) will become exercisable commencing on January 1 of the second calendar year
following the Grant Year; and 

(c)    the
remaining Stock Option shares will become exercisable commencing on January 1 of the third calendar year following the Grant Year; 

(ii)    in
the event that a Director ceases to be an Eligible Director prior to the time his or her Stock Options vest for any reason other than: (a) as a result of the CBS/Viacom
Merger (respecting Stock Options granted in calendar years 1999 and 2000) or (b) removal from office as a director of the Company and/or as a director of CBS, if applicable, for Cause, then a
prorata portion of the Stock Option shares that would otherwise have vested on the January 1 following the date the Director so ceased to be an Eligible Director (based on the number of full
and partial months served in the calendar year in which he or she ceased to be an Eligible Director divided by 12) will vest on such January 1 and all other unvested Stock Option shares
will remain unvested; and 

(iii)    in
the event a Director ceases to be a Director as a result of the CBS/Viacom Merger, Stock Options granted in calendar years 1999 and 2000 shall vest and become immediately
exercisable at the earlier of the effective date of the CBS/Viacom Merger or as provided in Section 6.2(c)(1). 

(iv)    all
outstanding Stock Option shares which have not otherwise become exercisable pursuant to Section 6.2(c)(1)(i) or 6.2(c)(1)(iii) will become immediately
exercisable upon the occurrence of a Change in Control as set forth in Section 8. 

5

 

(2)    Notwithstanding
anything to the contrary herein, (i) in the event that a director is removed for Cause from office as a director of the Company and/or of CBS, if applicable
(and/or, in the case of Stock Options granted to a director in his or her capacity as Board Chairman, from office as Board Chairman, if applicable), all outstanding Stock Options will be forfeited
immediately as of the time the grantee is so removed from office, and (ii) upon the occurrence of a Change in Control, all outstanding Stock Options will vest and become immediately
exercisable. 

(d)    Mandatory Holding of Stock.    Except as otherwise provided in Section 9 and except as otherwise determined by the
Board or the Committee, any Stock acquired on exercise of a Stock Option must be held by the grantee until the later of: (1) three years from the Grant Date; (2) two years from the date
the grantee ceases to be an Eligible Director; or (3) until the occurrence of a Change in Control, whichever first occurs (the "Option Shares Holding Period"); provided, however, as long as at
least six months have elapsed since the Grant Date, such Option Shares Holding Period, if any, will not apply in the case of a beneficiary properly designated by the Director pursuant to
Section 6.3, if any, or a person holding a Stock Option under a deceased grantee's will or under the applicable laws of descent or distribution, exercising a Stock Option in accordance with
Section 6.2(h)(3). 

(e)    Option Term.    The term of a Stock Option (the "Option Term") will be the shorter of: (1) the period of ten years
from its Grant Date; (2) the period from the Grant Date until the time the Stock Option is forfeited as provided in Section 6.2(c)(2)(i) in the event of removal from office for
Cause; (3) as to any portion of a Stock Option, the period from the Grant Date until the date such Stock Option can no longer become vested as provided in Section 6.2(c)(1) because the
grantee has ceased to be an Eligible Director; or (4) the period from the Grant Date until the date the Stock Option (or portion thereof) ceases to be exercisable as provided in
Section 6.2(h). 

(f)    Payment of Exercise Price.    Stock purchased on exercise of a Stock Option must be paid for as follows: (1) in cash
or by check (acceptable to the Company), bank draft or money order payable to the order of the Company; (2) through the delivery of shares of Stock which are then outstanding and which have a
Fair Market Value on the date of exercise equal to the Exercise Price per share multiplied by the number of shares as to which the Stock Option is being exercised (the "Aggregate Exercise Price");
(3) by delivery of an unconditional and irrevocable undertaking by a broker to deliver promptly to the Company sufficient funds to pay the Aggregate Exercise Price; or (4) by a
combination of the permissible forms of payment; provided, however, that any portion of the Exercise Price representing a fraction of a share must be paid in cash and no share of Stock held for less
than six months may be delivered in payment of the Aggregate Exercise Price. 

(g)    Rights as a Shareholder.    The holder of a Stock Option will not have any of the rights of a shareholder with respect to any
shares of Stock subject to the Stock Option until such shares are issued by the Company following the exercise of the Stock Option. 

(h)    Termination of Eligibility.    If a grantee ceases to be an Eligible Director for any reason prior to the end of the ten year
period from the Grant Date, any outstanding Stock Options will be exercisable according to the following provisions: 

(1)    If
a grantee ceases to be an Eligible Director for any reason other than removal for Cause or death, any outstanding Stock Options held by such grantee which are vested or which
thereafter vest in accordance with Section 6.2(c)(1)(ii) or (iii) will be exercisable by the grantee in accordance with their terms at any time prior to the expiration of the
Option Term; 

(2)    If
a grantee is removed for Cause from office as a director of the Company and/or of CBS, if applicable (and/or, in the case of Stock Options granted to a director in his or her
capacity as Board Chairman, from office as Board Chairman, if applicable), for Cause, any outstanding unvested Stock Options held by such grantee will be forfeited and any outstanding vested Stock
Options will cease to be exercisable by the grantee at the earlier of (a) the time the grantee is so removed from office and (b) the expiration of the Option Term; and 

6

 

(3)    Following
the death of a grantee, any Stock Options that are outstanding and exercisable by such grantee at the time of death or which thereafter vest in accordance with
Section 6.2(c)(1)(ii) or (iii) will be exercisable in accordance with their terms by the person or persons entitled to do so under the grantee's will, by a beneficiary properly
designated by the director in the event of death pursuant to Section 6.3, if any, or by the person or persons entitled to do so under the applicable laws of descent and distribution at any time
prior to the earlier of (a) the expiration of the Option Term and (b) two years after the date of death. 

(i)    Termination of Stock Option.    A Stock Option will terminate on the earlier of (1) exercise of the Stock Option in
accordance with the terms of the Plan, and (2) expiration of the Option Term as specified in Sections 6.2(e) and 6.2(h). 

(j)    Stock Option Agreement.    All Stock Options will be evidenced by an agreement, or an amendment thereto, which will be
executed on behalf of the Company by the Chief Executive Officer, the President, or any Vice President and by the grantee. 

(k)    General Restrictions.    

(1)    The
obligation of the Company to issue Stock pursuant to Stock Options under the Plan will be subject to the condition that, if at any time the Company determines that (a) the
listing, registration or qualification of shares of Stock upon any securities exchange or under any state or federal law, or (b) the consent or approval of any government or regulatory body is
necessary or desirable, then such Stock will not be issued unless such listing, registration, qualification, consent or approval has been effected or obtained free from any conditions not acceptable
to the Company. 

(2)    Shares
of Stock for use under the provisions of this Section 6 will not be issued until they have been duly listed, upon official notice of issuance, upon the New York Stock
Exchange and such other exchanges, if any, as the Board may determine, and a registration statement under the Securities Act of 1933 with respect to such shares has become, and is, effective. 

Subject
to the provisions of the Plan, any Stock Option granted under the Plan will be subject to such restrictions and other terms and conditions, if any, as the Board and/or the Committee may
determine, in its or their discretion, and as are set forth in the agreement referred to in Section 6.2(j), or an amendment thereto; provided, however, that in no event will the Committee or
the Board have any power or authority which would cause transactions pursuant to the Plan to cease to be exempt from the provisions of Section 16(b) of the Exchange Act pursuant to
Rule 16b-3, as such rule may be amended, or any successor rule. 

6.3    Designation of a Beneficiary.    A Director may designate a beneficiary to hold and exercise outstanding vested Stock
Options in accordance with the Plan in the event of the Director's death in a form approved by the Company. 

Section 7.    Restricted Stock Awards.  

7.1    Grants of Restricted Stock Awards.    

(a)    Restricted Stock Grants.    The Board or the Committee may, from time to time, grant Restricted Stock Awards to one or more
Directors or to the Board Chairman, if any, for such number of shares of Restricted Stock as the Board or the Committee may determine as all or a portion of the annual director's fee or the Board
Chairman's fee, if any, for a given year or years, or as compensation for special services outside of the scope of normal Board, committee or Board Chairman activities, or as additional compensation
to such Director or Directors or to such Board Chairman, if any, for their services as such, all subject to this Section 7 and to such other terms and conditions as the Board or the Committee
may provide. 

(b)    Adjustments.    Restricted Stock granted pursuant to Section 7.1 is subject to adjustment as provided in
Section 4.3. 

7

 

7.2    Restricted Stock Agreement; Issuance of Shares.    All Restricted Stock Awards will be evidenced by an agreement, or an
amendment thereto, which will be executed on behalf of the Company by the Chief Executive Officer, the President or any Vice President and by the grantee. 

If
the Restricted Stock Award is made in shares (rather than as a contract right to receive shares), a certificate representing the shares of Restricted Stock will be registered in the name of the
Director and deposited by him or her, together with a stock power endorsed in blank, with the Company. 

7.3    Restriction Period; Dividends or Dividend Equivalents    

(a)    Restriction Period.    At the time of award of Restricted Stock, there will be established for each grantee a "Restriction
Period" of such length as the Board or the Committee determines. The Restriction Period may be waived by the Board or the Committee. Shares of Restricted Stock and contract rights to receive shares of
Stock may not be sold, assigned, transferred, pledged or otherwise encumbered, except as otherwise provided in Section 9. 

Upon
the expiration or waiver by the Board or the Committee of the Restriction Period and the satisfaction (as determined by the Board or the Committee) of any other conditions determined by the Board
or the Committee, restrictions applicable to the Restricted Stock will lapse and the Company will, in the case of shares of Restricted Stock, redeliver to the grantee (or to his or her legal
representative or designated beneficiary) the shares deposited pursuant to Section 7.2 free and clear of all restrictions except as may be imposed by law and, in the case of contract rights to
receive shares of Stock, will pay out such shares as provided in the Restricted Stock Agreement. 

(b)    Dividends or Dividend Equivalents.    Subject to the restrictions on transfer set forth in Section 7.3(a), the grantee
as owner of shares of Restricted Stock will have the rights of the holder of such Restricted Stock, except that the Board or the Committee may provide at the time of the award that any dividends or
other distributions paid with respect to such Stock during the Restriction Period will be accumulated and held by the Company and will be subject to the same forfeiture provisions and the same
restrictions on transfer as apply to the shares of Restricted Stock with respect to which they were paid. 

The
Board or the Committee will determine whether and to what extent, if any, to credit to the account of, or to pay currently to, each recipient of a contract right to receive shares of Stock, an
amount equal to any dividends or other distributions paid during the Restriction Period with respect to the corresponding number of shares of Stock covered thereby ("Dividend Equivalent"). To the
extent provided by the Board or the Committee at or after the date of grant, any Dividend Equivalents with respect to cash dividends on the Stock credited to a grantee's account will be deemed to have
been invested in shares of Stock on the record date established for the related dividend and, accordingly, a contract right to receive a number of additional shares of Stock will be credited to such
grantee's account equal to the greatest whole number which may be obtained by dividing (x) the value of such Dividend Equivalent on the record date by (y) the Fair Market Value of a
share of Stock on such date. 

7.4    Termination of Eligibility.    Unless otherwise determined by the Board or the Committee, in the event the grantee is no
longer an Eligible Director, all shares of Restricted Stock and contract rights to receive shares of Stock previously awarded to him or her which are still subject to restrictions, along with any
dividends or other distributions thereon or any dividend equivalents that have been accumulated and held by the Company, will be forfeited, and in the case of Restricted Stock, the Company will have
the right to complete the blank stock power. 

7.5    Transfer and Other Restrictions.    

(a)    Except
as otherwise provided in Section 9, shares of Restricted Stock and contract rights to receive shares of Stock are not transferable during the Restriction Period. 

(b)    The
obligation of the Company to issue shares of Restricted Stock or to issue Stock pursuant to a contract right to receive shares of Stock under the Plan will be subject to the
condition that if, at any 

8

 

time, the Company determines that (i) the listing, registration or qualification of shares of Restricted Stock upon any securities exchange or under any state or federal law or (ii) the
consent or approval of any government or regulatory body is necessary or desirable, then such Restricted Stock will not be issued unless such listing, registration, qualification, consent or approval
has been effected or obtained free from any conditions not acceptable to the Company. 

(c)    Shares
of Stock for use under the provisions of this Section 7 will not be issued until they have been duly listed, upon official notice of issuance, upon the New York Stock
Exchange and such other exchanges, if any, as the Board may determine, and a registration statement under the Securities Act of 1933 with respect to such shares has become, and is, effective. 

(d)    Subject
to the foregoing provisions of this Section 7 and the other provisions of the Plan, any shares of Restricted Stock or contract rights to receive shares of Stock granted
under the Plan will be subject to such restrictions and other terms and conditions, if any, as the Board or the Committee may be determine, in its discretion, and as are set forth in the agreement
referred to in Section 7.2, or an amendment thereto; provided, however, that in no event will either the Committee or the Board have any power or authority which would cause transactions
pursuant to the Plan (other than pursuant to Section 8) to cease to be exempt from the provisions of Section 16(b) of the Exchange Act under Rule 16b-3, as such rule
may be amended, or any successor rule. 

Section 8.    Change in Control  

8.1    Settlement of Compensation.    In the event of a Change in Control of the Company as defined herein, (a) to the
extent not already vested, all Stock Option Awards, Restricted Stock Awards and other benefits hereunder will be vested immediately; and (b) the value of all unpaid benefits and deferred
amounts will be paid in cash to a trustee or otherwise on such terms as a majority of the Continuing Directors (or a majority of the members of a subcommittee of the Committee consisting solely of
members who are Continuing Directors ("Continuing Directors Subcommittee")) may prescribe or permit. 

8.2    Definition of Change in Control.    A Change in Control will mean the occurrence of one or both of the following: 

(a)    at
any time during any period of two consecutive years, individuals who at the beginning of such period constituted the entire Board, or individuals whose election or nomination for
election to the Board was approved by a vote of at least two-thirds of the directors then still in office who were either directors at the beginning of such two-year period or
whose nomination or election was so approved by such directors (together, the "Continuing Directors"), shall cease for any reason to constitute at least a majority of the entire Board; or 

(b)    a
majority of the Continuing Directors or of the members of the Continuing Directors Subcommittee shall determine that a Change in Control has occurred for purposes of the Plan. 

Section 9.    Assignability  

9.1    The
right to receive shares, payments or distributions hereunder (including any "derivative security" issued pursuant to the Plan, as such term is defined by the rules promulgated
under Section 16 of the Exchange Act), any shares of Restricted Stock granted hereunder during the Restriction Period, and any Stock Options granted hereunder will not be transferable or
assignable by a Director other than by will, by the laws of descent and distribution, to a beneficiary properly designated by the Director pursuant to the appropriate section of the Plan in the event
of death, if any, or pursuant to a domestic relations order as defined by Section 414(p)(1)(B) of the Internal Revenue Code or the rules thereunder that satisfies Section 414(p)(1)(A) of
the Internal Revenue Code or the rules thereunder. 

9

 

9.2    In
addition, Stock acquired on exercise of a Stock Option will not be transferable prior to the end of the applicable Option Shares Holding Period, if any, other than by will, by
transfer to a beneficiary properly designated by the Director pursuant to the appropriate section of the Plan in the event of death, if any, by the applicable laws of descent and distribution, or
pursuant to a domestic relations order as defined by Section 414(p)(1)(B) of the Internal Revenue Code or the rules thereunder that satisfies Section 414(p)(1)(A) of the Internal Revenue
Code or the rules thereunder. 

Section 10.    Retention; Withholding of Tax  

10.1    Retention.    Nothing contained in the Plan or in any Stock Option Award or Restricted Stock Award granted under the Plan
(other than Section 8) will interfere with or limit in any way the right of the Company to remove any director from the Board or to remove the Board Chairman, if any, from office as such
pursuant to the Restated Certificate of Incorporation and the Bylaws of the Company, nor confer upon any Director any right to continue in the service of the Company. 

10.2    Withholding of Tax.    To the extent required by applicable law and regulation, each Director must arrange with the Company
for the payment of any federal, state or local income or other tax applicable to any payment or any delivery of Stock hereunder before the Company will be required to make such payment or issue (or,
in the case of Restricted Stock, deliver) such shares under the Plan. 

Section 11.    Plan Amendment, Modification and Termination  

The Board may at any time terminate, and from time to time may amend or modify the Plan. 

Section 12.    Requirements of Law  

12.1    Federal Securities Law Requirements.    Implementation and interpretations of, and transactions pursuant to, the Plan will
be subject to all conditions required under Rule 16b-3, as such rule may be amended, or any successor rule, to qualify such transactions for any exemption from the provisions of
Section 16(b) of the Exchange Act available under that rule, or any successor rule. 

12.2    Governing Law.    The Plan and all agreements hereunder will be construed in accordance with and governed by the laws of
the State of Delaware. 

Section 13.    Other Compensation  

Nothing contained in the Plan will be deemed to limit or restrict the right of the Company to compensate directors for their services in any capacity in whole or in part under
separate compensation or deferral plans or programs for directors or under other compensation arrangements. 

10

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