Document:

Stock Option Agreement, dated as of March 15, 2008

 Exhibit 10.2 
 WARNER MUSIC GROUP CORP. 
 STOCK OPTION AGREEMENT 
 THIS STOCK OPTION AGREEMENT (this “Agreement”), is entered into as of this 15
th day of March 2008 (the “Date of Grant”), by and between Warner Music Group Corp., a Delaware corporation
(“Parent”), and Edgar Bronfman, Jr. (the “Executive”). 
 WHEREAS, WMG Acquisition Corp., a Delaware
corporation (the “Company”), an indirect subsidiary of Parent, or one of Parent’s other direct or indirect subsidiaries, employs the Executive; and 
 WHEREAS, the Parent has adopted the Amended and Restated Warner Music Group Corp. 2005 Omnibus Award Plan (the “Plan”), pursuant to which awards of options to purchase shares of the Parent’s
Common Stock may be granted to persons, including persons regularly employed by the Parent or its Affiliates; and 
 WHEREAS, the Board of
Directors of Parent (the “Board”) has determined that it is in the best interests of Parent and its stockholders to grant to the Executive as of the Date of Grant an option to purchase shares of Common Stock of Parent
(“Common Stock”), as provided for herein (the “Stock Option Award”); 
 NOW, THEREFORE, for and in
consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows: 
 1. Grant. Parent hereby grants on
the Date of Grant to the Executive an option (the “Option”) to purchase 2,750,000 shares of Common Stock (such shares of Common Stock, the “Option Shares”), on the terms and conditions set forth in the Plan and this Agreement.
This Option is not intended to be treated as an incentive stock option under Section 422 of the Code. The number and type of Option Shares purchasable hereunder shall be subject to adjustment as and in the manner provided in Section 11
below. 
 2. Incorporation by Reference, Etc. The provisions of the Plan are hereby incorporated herein by reference. Except as
otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan. As used herein
with respect to any person, the term “Affiliate” shall mean any entity that directly or indirectly is controlled by, controls or is under common control with such person. The Board shall have final authority to interpret and
construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon the Executive and his legal representative in respect of any questions arising under the Plan or this
Agreement. 
 3. Option Price. The price at which the Executive shall be entitled to purchase the Option Shares upon the exercise of
all or any portion of this Option shall be $5.29 per share, representing the Fair Market Value of the Common Stock as of the Date of Grant. Such exercise price shall be subject to adjustment as and in the manner provided in Section 11 below.

  

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 4. Expiration Date. Subject to Section 6 hereof, the Option shall expire at the end of the
period commencing on the Date of Grant and ending at 11:59 p.m. Eastern Time (“ET”) on the day preceding the tenth anniversary of the Date of Grant (the “Option Period”). 
 5. Exercisability of the Option. 
 (a) General. Except as may otherwise be provided herein, the Option shall become vested and exercisable in five equal installments on the day prior to each of the first, second, third, fourth and fifth
anniversaries of the Date of Grant (i.e., the vesting dates shall be March 14 of 2009, 2010, 2011, 2012 and 2013, respectively) provided that the Executive remains employed with the Company on each such date, such that one hundred percent
(100%) of the Option shall be vested and exercisable on the day prior to the fifth anniversary of the Date of Grant. 
 (b) Effect of Certain Terminations of Employment. Upon the Executive’s cessation of employment with the Company or any Affiliate of the Parent for any reason, any then remaining portion of the Unvested Option shall be
immediately terminated without the receipt of consideration by the Executive, as more fully set out below, except as set out in clauses (iv), (v) and (vi) below: 
 (i) Termination for Cause. Upon the Executive’s cessation of employment with the Company or any Affiliate of the Parent due to
a termination for Cause at any time, the entire Option (regardless of whether then vested) shall be immediately terminated without the receipt of consideration by the Executive. 
 (ii) Termination without Cause or for Good Reason. Except as provided in Sections 5(b)(v)-(vi) below, upon the
Executive’s cessation of employment with the Company or any Affiliate of the Parent due to a termination without Cause or for Good Reason, any then remaining portion of the Unvested Option shall be immediately terminated without the receipt of
consideration by the Executive. 
 (iii) Voluntary Termination without Good Reason. Except as provided in
Section 5(b)(vi) below, upon the Executive’s cessation of employment with the Company or any Affiliate of the Parent due to a voluntary termination without Good Reason, any then remaining portion of the Unvested Option shall be immediately
terminated without the receipt of consideration by the Executive. 
 (iv) Termination Due to Death or Disability.
Except as provided in Section 5(b)(vi) below, in the event of the Executive’s cessation of employment with the Company or any Affiliate of the Parent by reason of the Executive’s death or Disability, the additional portion, if any, of
the Option that would have become vested and exercisable if the Executive had remained employed by the Company for 12 months following such termination date will become immediately vested and exercisable as of such termination date. Any remaining
portion of the Unvested Option (after giving effect to the preceding sentence) shall be immediately terminated without the receipt of consideration by the Executive. 
  

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 (v) Termination without Cause or for Good Reason in Connection with a Change in
Control. Upon the Executive’s cessation of employment with the Company or any Affiliate of the Parent due to a termination without Cause or for Good Reason, in each case, provided that such termination occurs on or after, or in anticipation
of, a Change in Control, including an “EMI Change in Control” (as defined below), the Option shall become fully vested and exercisable. 
 (vi) Termination for any Reason Other than for Cause Upon or Following an EMI Change in Control. Upon the Executive’s cessation of employment with the Company or any Affiliate of the Parent for any reason
(including due to voluntary termination by the Executive, death or Disability) other than by the Company for Cause, provided that such termination occurs on or after an EMI Change in Control, the Option shall become fully vested and exercisable. For
the purposes of this Agreement, an “EMI Change in Control” shall mean a transaction that constitutes a Change in Control pursuant to which EMI Group Limited or its Affiliates (including, without limitation, any consortium of
investors controlled by EMI Group Limited or its Affiliates) directly or indirectly acquires (including, without limitation, by way of a merger, consolidation, reorganization or similar transaction) a controlling interest in the Common Stock or
assets of Parent (for purposes of this clause (vi), a “controlling interest” shall mean an interest which represents directly or indirectly through one or more entities, more than 50% of the economic interests in or voting power of Parent
or such other surviving entity immediately after such Change in Control and the power to elect a majority of the entire board of directors of Parent or such other surviving entity immediately after such Change in Control) in exchange for
consideration that is at least 90% comprised of cash; provided that, immediately following any such Change in Control, 10% or less of the voting securities of the surviving entity are owned by entities that were deemed to be part of a group
pursuant to Rule 13d-5(b)(1) of the Securities Exchange Act of 1934, as amended, with respect to Parent’s Common Stock immediately prior to such Change in Control. 
 (c) The term “Vested Option,” as used herein, shall mean the portion of the Option on and following the time that the
vesting condition set forth in Section 5(a) or 5(b) hereof has been satisfied as to such portion. The portion of the Option which has not become the Vested Option is hereinafter referred to as the “Unvested Option.” 

(d) The Option may be exercised only as to the Vested Option, and only by written notice using the applicable form provided by Parent
delivered in person or by mail in accordance with Section 12(a) hereof and accompanied by payment therefor. The purchase price of the Option Shares shall be paid by the Executive to Parent (A) by certified check or wire transfer (using
such wire transfer instructions as are provided by Parent or the Company), (B) by transferring to Parent shares of Common Stock, if and in the manner approved by Parent, (C) by a broker-assisted “cashless exercise” procedure if
and in the manner approved by the Committee, or (D) by any other method approved in 

  

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writing by the Committee. If requested by Parent, the Executive shall promptly deliver his copy of this Agreement evidencing the Option to the Secretary of
Parent who shall endorse thereon a notation of such exercise and promptly return such Agreement to the Executive. Upon payment of the applicable purchase price and the issuance of the Option Shares in accordance with the terms and conditions of this
Agreement, the Option Shares shall be validly issued, fully paid and nonassessable. 
 (e) In the event that the Common Stock
ceases to be traded on an Exchange following a transaction or other event that does not constitute a Change in Control, then, notwithstanding any provision of the Plan, the Option shall be treated in the same manner as Parent and the Company treat
stock options then held by the employees of the Company generally. 
 6. Exercise Period for Vested Option Following Termination of
Employment on Option. 
 (a) For purposes of this Agreement, the Executive’s employment may be terminated (i) by
the Company for Cause or by the employee in violation of any applicable employment agreement (a “6(a)(i) Termination”), (ii) by the Executive other than as a Retirement or for Good Reason and without any violation of any
applicable employment agreement (a “6(a)(ii) Termination”), (iii) by the Company without Cause (including on account of Disability), or on account of the Executive’s death or by the Executive for Good Reason (a
“6(a)(iii) Termination”) or (iv) by the Executive on account of Retirement (a “6(a)(iv) Termination”). For purposes of the preceding sentence, “Retirement” shall mean the Executive’s voluntary
termination of employment with the Company on or after the age of 62, after no less than 10 years of employment with the Company. 
 (b) The Vested Option shall remain exercisable by the Executive until the earlier of the last day of the Option Period or, as applicable, (i) thirty (30) days following the date of a 6(a)(i) Termination or a 6(a)(ii) Termination,
(ii) one hundred and twenty (120) days following the date of a 6(a)(iii) Termination and (iii) the last day of the Option Period, in the case of a 6(a)(iv) Termination. 
 7. Compliance with Legal Requirements. The granting and exercising of the Option, and any other obligations of the Company under this Agreement
shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required. Parent, in its sole discretion, may postpone the issuance or delivery of Option
Shares as Parent may consider appropriate and may require the Executive to make such representations and furnish such information as it may consider appropriate in connection with the issuance or delivery of Option Shares in compliance with
applicable laws, rules and regulations. 
 8. Transferability. Except as described in Section 12(k) of the Plan, the Option shall
not be transferable by the Executive other than by will or the laws of descent and distribution, and any such purported transfer shall be void and unenforceable against Parent; provided that the designation of a beneficiary shall not constitute a
transfer or encumbrance. 
  

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 9. Rights as Stockholder. The Executive shall not be deemed for any purpose to be the owner of any
shares of Common Stock subject to this Option unless, until and to the extent that (A) this Option shall have been exercised pursuant to its terms, (B) Parent shall have issued and delivered to the Executive the Option Shares, and
(C) the Executive’s name shall have been entered as a stockholder of record with respect to such Option Shares on the books of Parent. 
 10. Tax Withholding. Prior to the delivery of a certificate or certificates representing the Option Shares, the Executive must pay in the form of a certified check to Parent or the Company (as designated by Parent) any such
additional amount as Parent (or the Company) determines that it is required to withhold under applicable federal, state or local tax laws in respect of the exercise or the transfer of Option Shares; provided that the Committee may, in its sole
discretion, allow such withholding obligation to be satisfied by withholding Option Shares otherwise deliverable upon exercise of the Option or by any other method. 
 11. Adjustments for Stock Splits, Stock Dividends, etc.; Change in Control. Awards shall be subject to adjustment, substitution, or cancellation as determined by the Committee in its sole discretion, as is
fully set forth in Section 13 of the Plan. 
 12. Miscellaneous. 
 (a) Notices. Any notice, consent, request or other communication made or given in accordance with this Agreement shall be in
writing and shall be deemed to have been duly given when actually received or, if mailed, three days after mailing by registered or certified mail, return receipt requested, or one business day after mailing by a nationally recognized express mail
delivery service with instructions for next-day delivery, to those persons listed below at their following respective addresses or at such other address or person’s attention as each may specify by notice to the others: 
 To Parent: 
 Warner Music Group Corp. 
 75 Rockefeller Plaza 
 New York, New York 10019 
 Attention: General Counsel 
 To the Executive: 
 The most recent address for the Executive in the records of Parent or the Company. The Executive hereby agrees to promptly provide Parent and the Company
with written notice of any change in the Executive’s address for so long as this Agreement remains in effect. 
 (b)
Bound by Plan and Stockholders Agreement. By signing this Agreement, the Executive acknowledges that he has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of
the Plan. Additionally, the Executive acknowledges that any shares of Common Stock acquired upon exercise of the Option shall be subject to the terms of the Amended and Restated Stockholders Agreement, dated as of May 10, 2005, by and among
Parent, WMG Holdings Corp., the Company, Executive and certain other stockholders of Parent (the “Stockholders Agreement”). 
  

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 (c) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law. 
 (d) No Rights to Employment. Nothing contained in this Agreement shall be construed as giving the Executive any right to be
retained, in any position, as an employee, consultant or director of the Company or its Affiliates or shall interfere with or restrict in any way the right of the Company or its Affiliates, which are hereby expressly reserved, to remove, terminate
or discharge the Executive at any time for any reason whatsoever. 
 (e) Beneficiary. The Executive may file with
Parent a written designation of a beneficiary on such form as may be prescribed by Parent and may, from time to time, amend or revoke such designation. If no designated beneficiary survives the Executive, the executor or administrator of the
Executive’s estate shall be deemed to be the Executive’s beneficiary. 
 (f) Successors. The terms of this
Agreement shall be binding upon and inure to the benefit of Parent and its successors and assigns, and of the Executive and the beneficiaries, executors, administrators, heirs and successors of the Executive. 
 (g) Entire Agreement. This Agreement contains the entire agreement and understanding of the parties hereto with respect to the
subject matter contained herein and supersedes all prior communications, representations and negotiations in respect thereto. No change, modification or waiver of any provision of this Agreement shall be valid unless the same be in writing and
signed by the parties hereto. 
 (h) GOVERNING LAW; CONSENT TO JURISDICTION. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND TO BE WHOLLY PERFORMED WITHIN THAT STATE. ANY ACTION TO ENFORCE THIS AGREEMENT MUST BE BROUGHT IN A COURT SITUATED IN, AND THE PARTIES HEREBY CONSENT TO
THE JURISDICTION OF, COURTS SITUATED IN NEW YORK COUNTY, NEW YORK. EACH PARTY HEREBY WAIVES THE RIGHTS TO CLAIM THAT ANY SUCH COURT IS AN INCONVENIENT FORUM FOR THE RESOLUTION OF ANY SUCH ACTION. 
 (i) JURY TRIAL WAIVER. THE PARTIES EXPRESSLY AND KNOWINGLY WAIVE ANY RIGHT TO A JURY TRIAL IN THE EVENT ANY ACTION ARISING UNDER OR
IN CONNECTION WITH THIS AGREEMENT IS LITIGATED OR HEARD IN ANY COURT. 
  

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 (j) Interpretations. The headings of the Sections hereof are provided for
convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement. The term “Company” as used herein with reference to the employment of the Executive or the termination
thereof shall refer to the Company, Parent and each of their direct and indirect subsidiaries. 
 (k) Signature in
Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. The parties hereto confirm that any facsimile copy of
another party’s executed counterpart of this Agreement (or its signature page thereof) will be deemed to be an executed original thereof. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above.

  

			
	WARNER MUSIC GROUP CORP.
	
	 /s/ Paul Robinson

	By:	 	Paul Robinson
	Title:	 	EVP and General Counsel
	
	EXECUTIVE
	
	 /s/ Edgar Bronfman, Jr.

	Name:	 	Edgar Bronfman, Jr.

  

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 NOTICE OF OPTION EXERCISE 
 To exercise your option to purchase shares of Warner Music Group Corp. (“Parent”) common stock (“Shares”), please fill out this form and return it to the Corporate Secretary of
Parent, together with a certified check in the amount of the exercise price due, which is the product of the number of Shares with respect to which you are exercising the Option and the per share exercise price per share in your Stock Option
Agreement. At its option, Parent may provide for the exercise price to be paid in a different manner. You are not required to exercise your option with respect to all Shares thereunder. You also must include a certified check in the amount of any
required payroll taxes and income tax withholding due in connection with your exercise, unless Parent specifically provides for such obligation to be satisfied in a different manner (such as the “cashless exercise” method set forth below).

 I hereby exercise my right to purchase              Shares under the option granted to
me pursuant to the Stock Option Agreement between myself and Parent, dated as of             . My option is vested and exercisable as to the Shares being purchased hereunder.

 Please note below the form of payment elected: 
 Cashless Exercise: 
  ̈ I elect to pay both the exercise price and required payroll
taxes and income tax withholding through a “cashless exercise”. Under this method, Merrill Lynch will sell some or all of the Shares immediately, with part of the proceeds being used to pay the exercise price, taxes and brokerage fees. The
remaining proceeds (net of the exercise price, any withholding and brokerage commissions or other fees) will be paid to the option holder. 
 Exercise with Cash Payment: 
  ̈ I have enclosed either one or more certified checks
covering both the exercise price of $             and the required payroll taxes and income tax withholding of
$            . (Please contact Trent N. Tappe to determine the amount of any required payroll taxes and income tax withholding.) 
 If electing the cashless exercise form of payment above, this represents a sale of Shares. You will need to obtain any necessary pre-clearance required by
Parent’s Insider Trading Policy prior to completing any such exercise. Additionally, any sale of Shares must comply with and will be subject to the terms of the Stockholders Agreement. 
 I hereby represent that, to the best of my knowledge and belief, I am legally entitled to exercise this option. 
  

			
	Signature:	 	  

		
	Printed Name:	 	  

		
	Social Security Number:	 	  

		
	Date:	 	  

  

 B-9Restricted Stock Award Agreement, dated as of March 15, 2008

 Exhibit 10.3 
 WARNER MUSIC GROUP CORP. 
 RESTRICTED STOCK AWARD AGREEMENT 
 THIS EXECUTIVE RESTRICTED STOCK AWARD AGREEMENT (the “Agreement”) is
entered into as of this 15th day of March 2008, by and between Warner Music Group Corp., a Delaware corporation (“Parent”), and
Edgar Bronfman, Jr. (the “Executive”). 
 R E C I T A L S: 
 WHEREAS, WMG Acquisition Corp., a Delaware corporation (the “Company”), an indirect subsidiary of Parent, or one of Parent’s other
direct or indirect subsidiaries, employs the Executive; and 
 WHEREAS, the Parent has adopted the Amended and Restated Warner Music Group
Corp. 2005 Omnibus Award Plan (the “Plan”), pursuant to which awards of restricted shares of the Parent’s Common Stock may be granted to persons, including persons regularly employed by the Parent or its Affiliates; and

 WHEREAS, the Board of Directors of Parent (the “Board”) has determined that it is in the best interests of Parent and its
stockholders to grant as of the date hereof (the “Effective Date”) the restricted stock award provided for herein (the “Restricted Stock Award”) to the Executive in connection with the Executive’s services to
the Company and the Parent’s Affiliates, such grant to be subject to the terms set forth herein. 
 NOW THEREFORE, in consideration of
the mutual covenants hereinafter set forth, the parties hereto agree as follows: 
 1. Incorporation by Reference, Etc. The provisions
of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any capitalized terms not otherwise defined in this
Agreement shall have the definitions set forth in the Plan. As used herein with respect to any person, the term “Affiliate” shall mean any entity that directly or indirectly is controlled by, controls or is under common control with
such person. The Board shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon the Executive and his legal
representative in respect of any questions arising under the Plan or this Agreement. 
 2. Grant of Restricted Stock Award. Parent
hereby grants on the Effective Date to the Executive a Restricted Stock Award consisting of 2,750,000 shares of Common Stock (hereinafter called the “Restricted Shares”), on the terms and conditions set forth in this Agreement and
as otherwise provided in the Plan. The Restricted Shares shall vest in accordance with Section 3(a) hereof. 
  

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 3. Terms and Conditions. 
 (a) Vesting. 
 (i)
Except as otherwise provided in this Agreement, the Restricted Shares shall vest and become non-forfeitable, upon the achievement of both the “Service Condition” and the “Performance Condition” (each as defined below) with
respect to all or any portion of the Restricted Shares. 
 (A) Service Condition. The “Service
Condition” shall be deemed satisfied with respect to each of the Tranches described in Section 3(a)(i)(B) in equal annual installments with respect to 20% of the Restricted Shares covered by each such Tranche on the day immediately
prior to each of the first, second, third, fourth and fifth anniversaries of the Effective Date (i.e., the Service Condition shall be deemed satisfied in 20% equal annual installments on March 14 of 2009, 2010, 2011, 2012 and 2013,
respectively, and each such date is referred to herein as a “Service Vesting Date”), provided that the Executive remains employed with the Company on each such date (subject to Section 3(a)(iii) below). 
 (B) Performance Condition. The “Performance Condition” shall be deemed satisfied with respect to each of the
“Tranches” of Restricted Shares described below upon the achievement at any time prior to the fifth anniversary of the Effective Date of the corresponding performance hurdle described below, in each case, provided that the Executive is
employed with the Company at the time such Performance Condition is met (subject to Section 3(a)(iii)(D) below). 
 For
the purposes of this Section 3(a)(i)(B), the Restricted Shares shall be divided into four “Tranches” as follows: 
 (1) “First Tranche” shall mean 650,000 of the Restricted Shares, for which the Performance Condition will be satisfied upon achievement of the First Performance Hurdle; 
 (2) “Second Tranche” shall mean 650,000 of the Restricted Shares, for which the Performance Condition will be satisfied
upon achievement of the Second Performance Hurdle; 
 (3) “Third Tranche” shall mean 650,000 of the
Restricted Shares, for which the Performance Condition will be satisfied upon achievement of the Third Performance Hurdle; and 
 (4) “Fourth Tranche” shall mean 800,000 of the Restricted Shares, for which the Performance Condition will be satisfied upon achievement of the Fourth Performance Hurdle. 
 For purposes of illustrating the vesting terms described in this Section 3(a)(i), on each Service Vesting Date, an amount of
Restricted Shares equal to the product of 20% multiplied by the number of Restricted Shares covered by each 

  

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Tranche (if any) with respect to which the relevant Performance Condition has been satisfied shall become vested and non-forfeitable. Additionally, upon the
achievement of any Performance Condition with respect to a Tranche following the date on which one or more of the 20% incremental portions of the Service Condition has been satisfied, an additional amount of Restricted Shares equal to the product of
the number of Restricted Shares covered by such Tranche multiplied by the percentage of the Service Condition which has been previously attained shall become vested and non-forfeitable. 
 (ii) For the purposes of this Section 3(a), and also as and if used elsewhere in this Agreement, the following terms shall have the
following meanings: 
 (A) “First Performance Hurdle” shall mean the Common Stock achieving an average
closing stock price of at least $10.00 per share over 60 consecutive trading days on the New York Stock Exchange or such other primary stock exchange with which the Common Stock is listed and traded (or quoted in the Nasdaq) (an
“Exchange”). 
 (B) “Second Performance Hurdle” shall mean the Common Stock achieving an
average closing stock price of at least $13.00 per share over 60 consecutive trading days on an Exchange. 
 (C)
“Third Performance Hurdle” shall mean the Common Stock achieving an average closing stock price of at least $17.00 per share over 60 consecutive trading days on an Exchange. 
 (D) “Fourth Performance Hurdle” shall mean the Common Stock achieving an average closing stock price of at least $20.00
per share over 60 consecutive trading days on an Exchange. 
 (iii) Effect of Certain Terminations of Employment. Upon
the Executive’s cessation of employment with the Company or any Affiliate of the Parent for any reason, any then remaining Unvested Restricted Shares shall be forfeited without consideration as more fully set out below, except as set out
in clauses (D), (E) and (F) below: 
 (A) Termination for Cause. Upon the Executive’s cessation of
employment with the Company or any Affiliate of the Parent due to a termination for Cause at any time, all Unvested Restricted Shares shall be forfeited by the Executive without the receipt of consideration. 
 (B) Termination without Cause or for Good Reason. Except as provided in Sections 3(a)(iii)(E)-(F) below, upon the
Executive’s cessation of employment with the Company or any Affiliate of the Parent due to a termination without Cause or for Good Reason, all Unvested Restricted Shares shall be forfeited by the Executive without the receipt of consideration.

  

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 (C) Voluntary Termination without Good Reason. Except as provided in
Section 3(a)(iii)(F) below, upon the Executive’s cessation of employment with the Company or any Affiliate of the Parent due to a voluntary termination without Good Reason, all Unvested Restricted Shares shall be forfeited by the Executive
without the receipt of consideration. 
 (D) Termination Due to Death or Disability. Except as provided in
Section 3(a)(iii)(F) below, in the event of the Executive’s cessation of employment with the Company or any Affiliate of the Parent by reason of the Executive’s death or Disability, the Service Condition shall be deemed to have been
satisfied to the same extent as if the Executive had remained employed by the Company for 12 months following such termination date. Additionally, following the Executive’s termination due to death or Disability, any Unvested Restricted Shares
shall continue to vest in accordance with Section 3(a) to the extent that any additional Performance Conditions are satisfied during the 12 month period following the date of such cessation of employment. Any Unvested Restricted Shares that
remain outstanding 12 months following the date of the Executive’s termination due to death or Disability shall be forfeited by the Executive without the receipt of consideration. 
 (E) Termination without Cause or for Good Reason in Connection with a Change in Control. Upon the Executive’s cessation of
employment with the Company or any Affiliate of the Parent due to a termination without Cause or for Good Reason, in each case, provided that such termination occurs on or after, or in anticipation of, a Change in Control, including an “EMI
Change in Control” (as defined below), the Service Condition applicable to each share of Restricted Stock shall be deemed to have been fully attained. 
 (F) Termination for any Reason Other than for Cause Upon or Following an EMI Change in Control. Upon the Executive’s cessation of employment with the Company or any Affiliate of the Parent for any reason
(including due to voluntary termination by the Executive, death or Disability) other than by the Company for Cause, provided that such termination occurs on or after an EMI Change in Control, the Service Condition applicable to each share of
Restricted Stock shall be deemed to have been fully attained. For the purposes of this Agreement, an “EMI Change in Control” shall mean a transaction that constitutes a Change in Control pursuant to which EMI Group Limited or its
Affiliates (including, without limitation, any consortium of investors controlled by EMI Group Limited or its Affiliates) directly or indirectly acquires (including, without limitation, by way of a merger, consolidation, reorganization or similar
transaction) a controlling interest in the Common Stock or assets of Parent (for purposes of this clause (F), a “controlling interest” shall mean an interest which represents directly or indirectly through one or more entities, more than
50% of the economic interests in or voting power of Parent or such other surviving entity immediately after such Change in Control and the power to elect a majority of the entire board of directors of Parent or such other surviving entity
immediately after 

  

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such Change in Control) in exchange for consideration that is at least 90% comprised of cash; provided that, immediately following any such Change in
Control, 10% or less of the voting securities of the surviving entity are owned by entities that were deemed to be part of a group pursuant to Rule 13d-5(b)(1) of the Securities Exchange Act of 1934, as amended, with respect to Parent’s Common
Stock immediately prior to such Change in Control. 
 (iv) Notwithstanding anything herein to the contrary, (A) upon a
Change in Control following which the Common Stock ceases to be traded on an Exchange, any Unvested Restricted Shares for which a Performance Condition has not been met will be forfeited; provided, however, that Unvested Restricted
Shares for which a Performance Condition has been met, on or prior to such Change in Control, will continue to vest upon satisfaction of the corresponding Service Condition; and (B) if the Fair Market Value as of the date of any Change in
Control (or, if greater, the per share consideration paid in connection with such Change in Control) exceeds the per share dollar threshold amount of any of the Performance Conditions described above (without regard to the number of consecutive
trading days for which the average closing price was achieved) then such Performance Condition shall be deemed to have been achieved as of the date of such Change in Control, to the extent not previously achieved. 
 (v) In the event that the Common Stock ceases to be traded on an Exchange following a transaction or other event that does not constitute
a Change in Control, then, notwithstanding any provision of the Plan, the Restricted Shares shall remain outstanding and shall continue to be governed by the terms of this Agreement; provided, however, that Parent shall, after good
faith consultation with the Executive, equitably adjust the terms applicable to the Restricted Shares (including, without limitation, the Performance Conditions) in order to maintain, to the extent reasonably possible, the intent of
the parties in establishing the Performance Conditions set out in this Agreement. 
 (b) The term “Vested Restricted
Shares,” as used herein, shall mean each Restricted Share on and following the time that both the Service Condition and the Performance Condition set forth in Section 3(a) hereof have been satisfied as to such share and the Executive
has paid any applicable taxes payable with respect to such share as set forth in Section 3(c) hereof. Restricted Shares which have not become Vested Restricted Shares are hereinafter referred to as “Unvested Restricted Shares.”

 (c) Taxes. The Executive shall pay to Parent or the Company (as designated by Parent) promptly upon request, and in any event at
the time the Executive recognizes taxable income in respect of the Restricted Stock Award, an amount equal to the taxes, if any, Parent determines it is required to withhold under applicable tax laws with respect to the Restricted Shares. Such
payment shall be made in the form of cash or, upon approval of Parent in its absolute and sole discretion, by having Parent withhold from the number of Restricted Shares otherwise issuable pursuant to the settlement of the Restricted Stock Award a
number of Restricted Shares with a Fair Market Value equal to such withholding liability. The Executive may, but shall not be required to, make an election pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the
“Code”) to realize taxable income in respect of the grant of the Restricted Stock Award, in an amount equal to the fair market value of the Restricted Shares on the Date of Grant. If Executive makes such an election, Executive shall
provide a copy of such election to the Company and Parent as required by Section 83(b) of the Code. 
  

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 (d) Certificates. Certificates evidencing the Restricted Shares shall be issued by Parent and
shall be registered in the Executive’s name on the stock transfer books of Parent promptly after the Effective Date, but shall remain in the physical custody of Parent or its designee at all times prior to, in the case of any particular
Restricted Shares, becoming Vested Restricted Shares. As a condition to the receipt of this Restricted Stock Award, the Executive shall deliver to Parent a stock power, duly endorsed in blank, relating to the Restricted Shares. 
 (e) Effect of Failure to Achieve Performance Conditions. Upon the fifth anniversary of the Effective Date, any then remaining Unvested Restricted
Shares shall be forfeited by the Executive without the receipt of consideration. 
 (f) Rights as a Stockholder; Dividends. The
Executive shall be the record owner of the Restricted Shares unless and until such shares are forfeited pursuant to Sections 3(a)(iii) or 3(e) hereof or sold or otherwise disposed of, and as record owner shall be entitled to all rights of a common
stockholder of Parent, including, without limitation, voting rights, if any, with respect to the Restricted Shares; provided that any cash or in-kind dividends paid with respect to Unvested Restricted Shares shall be withheld by Parent and shall be
paid to the Executive, without interest, upon the earliest to occur of (i) the fifth anniversary of the Effective Date, or (ii) the first anniversary of the Executive’s separation from service within the meaning of Code
Section 409A for any reason, in each case, only with respect to such Restricted Shares (if any) that have become Vested Restricted Shares on or prior to such date. As soon as practicable following the vesting of any Restricted Shares,
certificates for such Vested Restricted Shares shall be delivered to the Executive or the Executive’s beneficiary along with the stock power relating thereto. 
 (g) Restrictive Legend. All certificates representing Restricted Shares shall have affixed thereto a legend in substantially the following form, in addition to any other legends that may be required under
federal or state securities laws: 
 TRANSFER OF THIS CERTIFICATE AND THE SHARES REPRESENTED HEREBY IS RESTRICTED PURSUANT TO THE TERMS OF THE
AMENDED AND RESTATED WARNER MUSIC GROUP CORP. 2005 OMNIBUS AWARD PLAN AND A RESTRICTED STOCK AWARD AGREEMENT, DATED AS OF [MARCH] 15, 2008, BETWEEN WARNER MUSIC GROUP CORP. AND EDGAR BRONFMAN, JR. A COPY OF SUCH PLAN AND AGREEMENT IS ON FILE AT THE
OFFICES OF WARNER MUSIC GROUP CORP. 
 (h) Transferability. No Restricted Share may, at any time prior to becoming a Vested Restricted
Share, be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Executive and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against
Parent; provided, that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. 
  

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 4. Miscellaneous. 
 (a) Notices. Any notice, consent, request or other communication made or given in accordance with this Agreement shall be in writing and shall be deemed to have been duly given when actually received or, if
mailed, three days after mailing by registered or certified mail, return receipt requested, or one business day after mailing by a nationally recognized express mail delivery service with instructions for next-day delivery, to those persons listed
below at their following respective addresses or at such other address or person’s attention as each may specify by notice to the others: 
 To Parent: 
 Warner Music Group Corp. 
 75 Rockefeller Plaza 
 New York, New York 10019 
 Attention: General Counsel 
 To the
Executive: 
 The most recent address for the Executive in the records of Parent or the Company. The Executive hereby agrees to promptly
provide Parent and the Company with written notice of any change in the Executive’s address for so long as this Agreement remains in effect. 
 (b) Bound by Plan and Stockholders Agreement. By signing this Agreement, the Executive acknowledges that he has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and
provisions of the Plan. Additionally, the Executive acknowledges that the Restricted Shares shall be subject to the terms of the Amended and Restated Stockholders Agreement, dated as of May 10, 2005, by and among Parent, WMG Holdings Corp., the
Company, Executive and certain other stockholders of Parent. 
 (c) Beneficiary. The Executive may file with the Board a written
designation of a beneficiary on such form as may be prescribed by the Board and may, from time to time, amend or revoke such designation. If no designated beneficiary survives the Executive, the executor or administrator of the Executive’s
estate shall be deemed to be the Executive’s beneficiary. The Executive’s beneficiary shall succeed to the rights and obligations of the Executive hereunder upon the Executive’s death, except as maybe otherwise described herein.

 (d) Successors. The terms of this Agreement shall be binding upon and inure to the benefit of Parent, its successors and assigns,
and of the Executive and the beneficiaries, executors, administrators, heirs and successors of the Executive. 
 (e) Entire Agreement.
This Agreement contains the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersedes all prior communications, representations and negotiations in respect thereto. No change,
modification or waiver of any provision of this Agreement shall be valid unless the same be in writing and signed by the parties hereto. 
  

 A-7 

 (f) No Rights to Employment. Nothing contained in this Agreement shall be construed as giving the
Executive any right to be retained, in any position, as an employee, consultant or director of the Company or any Affiliate of Parent or shall interfere with or restrict in any way the right of the Company or any Affiliate of Parent, which are
hereby expressly reserved, to remove, terminate or discharge the Executive at any time for any reason whatsoever. 
 (g) Severability.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement and each other provision of the Agreement shall be severable and enforceable to the extent
permitted by law. 
 (h) Waiver. Any right of Parent contained in the Agreement may be waived in writing by the Board. No waiver of
any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of
this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach. 
 (i)
GOVERNING LAW; CONSENT TO JURISDICTION. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND TO BE WHOLLY PERFORMED WITHIN THAT STATE. ANY ACTION TO ENFORCE
THIS AGREEMENT MUST BE BROUGHT IN A COURT SITUATED IN, AND THE PARTIES HEREBY CONSENT TO THE JURISDICTION OF, COURTS SITUATED IN NEW YORK COUNTY, NEW YORK. EACH PARTY HEREBY WAIVES THE RIGHTS TO CLAIM THAT ANY SUCH COURT IS AN INCONVENIENT FORUM FOR
THE RESOLUTION OF ANY SUCH ACTION. 
 (j) JURY TRIAL WAIVER. THE PARTIES EXPRESSLY AND KNOWINGLY WAIVE ANY RIGHT TO A JURY TRIAL IN
THE EVENT ANY ACTION ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT IS LITIGATED OR HEARD IN ANY COURT. 
 (k) Headings. The
headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement. 
 (l) Signature in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument. The parties hereto confirm that any facsimile copy of another party’s executed counterpart of this Agreement (or its signature page thereof) will be deemed to be an executed original
thereof. 
  

 A-8 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement. 
  

			
	Warner Music Group Corp.
	
	 /s/ Paul Robinson

	By:	 	Paul Robinson
	Title:	 	EVP and General Counsel
	
	Edgar Bronfman, Jr.
	
	 /s/ Edgar Bronfman, Jr.

  

 A-9 

 STOCK POWER 
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto             , 2,750,000 shares of Common Stock of Warner Music Group
Corp., a Delaware corporation, issued pursuant to an Executive Restricted Stock Award Agreement between Warner Music Group Corp. and the undersigned, dated             , 2008 and
standing in the name of the undersigned on the books of said corporation, represented by Certificate No.             , and does hereby irrevocably constitute and appoint Warner Music
Group Corp. as the undersigned’s true and lawful attorney, for it and in its name and stead, to sell, assign and transfer the said stock on the books of said corporation with full power of substitution in the premises. 
  

							
	Dated:	 	  
	  	        Name:	 	  

  

 A-10

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