Document:

Put Option Agreement

 
EXHIBIT 10.30

 
 
 
PUT OPTION AGREEMENT 
 
 
between 
 
 
AMBAC ASSURANCE CORPORATION 
 
 
and 
 
 
ANCHORAGE FINANCE MASTER TRUST, 
ON BEHALF OF ITS SERIES 
ANCHORAGE FINANCE SUB-TRUST IV 
 
 
 
Dated as of May 23, 2002 
 

 
Preamble

 
This Put Option Agreement, dated as of May
23, 2002 (the “Agreement”), is by and between Ambac Assurance Corporation, a Wisconsin corporation (“Ambac Assurance”) and Anchorage Finance Master Trust (the “Master Trust”), a Delaware business
trust, on behalf of its series, Anchorage Finance Sub-Trust IV (the “Sub-Trust”). 
 
 
Recitals 
 
WHEREAS, Ambac Assurance is authorized to issue 4,000 shares of non-cumulative, perpetual preferred stock designated “Auction Market
Preferred Shares,” which shares shall not be registered with the Securities and Exchange Commission under the Securities Act of 1933, as amended, on or before the Put Option Payment Date (defined below) (the “Preferred Stock”);
and 
 
WHEREAS, Ambac Assurance and the Master
Trust, on behalf of the Sub-Trust, desire to enter into a binding agreement pursuant to which Ambac Assurance will have the right to sell, at its option, the Preferred Stock to the Master Trust, on behalf of the Sub-Trust, and the Master Trust, on
behalf of the Sub-Trust, will have an obligation to purchase the Preferred Stock upon Ambac Assurance’s exercise of its option and upon the other terms and conditions agreed upon by the parties. 
 
NOW THEREFORE, the parties hereto agree as follows:

 
1.    Definitions; Interpretation

 
1.1    The words
“herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular section, clause or other subdivision, and references to
“Sections” refer to Sections of this Agreement except as otherwise expressly provided. 
 
1.2    In this Agreement: 
 
“ABC Securities” has the meaning set forth in the Declaration. 
 
“Agreement” has the meaning set forth above
in the Preamble. 
 
“Ambac
Assurance” has the meaning set forth above in the Preamble. 
 
“Auction Date” has the meaning set forth in the General Terms of the ABC Securities attached to the Declaration as Appendix A. 
 

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“Auction Rate” has the meaning set forth in the General Terms of the ABC Securities attached to the Declaration as Appendix A. 
 
“Broker-Dealer” has the meaning set forth in the Declaration. 
 
“Business Day” has the meaning set forth in
the Declaration. 
 
“Closing Date”
means the date of this Agreement. 
 
“Declaration” means the Declaration of Trust governing the Master Trust, as the same may be amended or restated from time to time. 
 
“Default” has the meaning set forth in the Declaration. 
 
“Delayed Auction” has the meaning set forth
in the General Terms of the ABC Securities attached to the Declaration as Appendix A. 
 
“Delayed Auction Date” has the meaning set forth in the General Terms of the ABC Securities attached to the Declaration as Appendix A. 
 
“Delayed Auction Period” has the meaning set
forth in the General Terms of the ABC Securities attached to the Declaration as Appendix A. 
 
“Delayed Auction Rate” has the meaning set forth in the General Terms of the ABC Securities attached to the Declaration as Appendix A. 
 
“Delayed Distribution Rate” means, for each
Delayed Auction Period, an amount equal to (a) the yield anticipated to be earned during such period on the Trust Property, minus (b) the anticipated expenses of the Sub-Trust for such Delayed Auction Period, provided that such amount shall be
annualized and expressed as an annual rate with respect to the aggregate face amount of the ABC Securities outstanding on the date the Delayed Put Option Premium is determined. 
 
“Delayed Put Option Premium” has the meaning set forth in Section 5.1. 
 
“Delayed Put Option Premium Certificate” has
the meaning set forth in Section 5.2. 
 
“Distribution Rate” means, for each Distribution Period, an amount equal to (a) the Projected Yield for such period, minus (b) the anticipated expenses of the Sub-Trust for such Distribution Period, provided that
such amount shall be annualized and expressed as an annual rate with respect to the aggregate face amount of the ABC Securities outstanding on the date the Put Option Premium is determined. The Distribution Rate for 
 

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each
Distribution Period will be calculated on the Auction Date occurring on the last Business Day prior to such Distribution Period. 
 
“Distribution Payment Date” has the meaning set forth in the General Terms of the ABC Securities attached to the
Declaration as Appendix A. 
 
“Distribution
Period” has the meaning set forth in the General Terms of the ABC Securities attached to the Declaration as Appendix A. 
 
“Federal Funds Effective Rate” has the meaning set forth in the Declaration. 
 
“Holder” has the meaning set forth in the
Declaration. 
 
“Overnight Rate of
Return” means the rate earned on the earnings on the principal of the Trust Property from each Auction Date to the Distribution Payment Date occurring on the next Business Day, which shall be equal to the Federal Funds Effective Rate in
effect as of the Business Day prior to the date of the determination of the Put Option Premium with respect to the Distribution Period for which such Put Option Premium is calculated. 
 
“Preferred Stock” has the meaning set forth above in the Recitals. 
 
“Projected Yield” means all amounts of
interest (including accreted interest) and other payments due and payable (upon maturity or otherwise) on the principal amount of the Trust Property (excluding any repayment of principal) held by the Sub-Trust during the respective Distribution
Period, plus the amount of interest anticipated to be earned based on the Overnight Rate of Return, as calculated on or prior to 11:00 a.m. on the Auction Date for each respective Distribution Period. 
 
“Put Notice” means a written notice
substantially in the form attached hereto as Annex A. 
 
“Put Option Premium” has the meaning set forth in Section 5. 
 
“Put Option Premium Certificate” has the meaning set forth in Section 5.2. 
 
“Put Option Payment Date” has the meaning set
forth in Section 3.2(a). 
 
“Put
Option Price” has the meaning set forth in Section 4.1. 
 
“Sub-Trust” has the meaning set forth above in the Preamble. 
 
“Tax Matters Partner” has the meaning set forth in the Declaration. 
 
“Trust Property” has the meaning set forth in
the Declaration. 
 

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“Trustee” has the meaning set forth in the Declaration. 
 
In this Agreement, any reference to a “company” shall be construed so as to include any corporation, trust, partnership, limited liability company or other legal entity, wheresoever
incorporated or established. 
 
1.3    In this Agreement, save where the contrary is indicated, any reference to: 
 
(a)    this Agreement or any other agreement or document shall be construed as a reference to this
Agreement or, as the case may be, such other agreement or document as the same may have been, or may from time to time be, amended, varied, novated or supplemented in accordance with its terms; and 
 
(b)    a statute shall be
construed as a reference to such statute as the same may have been, or may from time to time be, amended or re-enacted. 
 
1.4    In this Agreement, any definition shall be equally applicable to both the singular and plural forms of the
defined terms. 
 

	2.	 	Put Option; Term 

 
2.1    In consideration of the payment of the Put Option Premium and the Delayed Put Option Premium, if any, the
Master Trust, on behalf of the Sub-Trust, hereby grants to Ambac Assurance the right to require the Master Trust, on behalf of the Sub-Trust, to purchase the Preferred Stock on the terms set forth in this Agreement. 
 
2.2    This Agreement and the put option
created hereby shall remain in effect until the earlier to occur of the following: 
 
(a)    Ambac Assurance terminates this agreement by delivering a written notice to the Master Trust,
on behalf of the Sub-Trust, stating that Ambac Assurance is terminating the Agreement on the next succeeding Auction Date that follows the notice by at least three (3) Business Days and indicating the Auction Date on which the termination shall
become effective. Delivery of a termination notice by Ambac Assurance shall be irrevocable; and 
 

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(b)    Ambac Assurance fails to make payment of the Put Option Premium or the Delayed Put Option Premium, if any, and such failure has not been cured within five (5) Business Days. 
 
2.3    This Agreement shall terminate upon
Ambac Assurance’s exercise of its rights under Section 3 and the payment of the Put Option Price under Section 4, provided, however, that Section 7.5 shall survive such termination. 
 

	3.	 	Exercise of Put Option 

 
3.1    The Master Trust, on behalf of the Sub-Trust, agrees that it shall, upon exercise of the option as provided in
Section 3.2, purchase the Preferred Stock from Ambac Assurance for a purchase price equal to the Put Option Price, which Put Option Price shall be payable on the Put Option Payment Date in accordance with Section 4. 
 
3.2    (a)    Ambac
Assurance may exercise the option at any time upon three (3) Business Days’ notice after the date hereof and prior to the termination of this Agreement by serving a Put Notice on the Master Trust, on behalf of the Sub-Trust, specifying a
payment date (the “Put Option Payment Date”), which shall be the next Distribution Payment Date on or after the third Business Day after service of the Put Notice on the Master Trust, on behalf of the Sub-Trust. Any notice of
exercise provided pursuant to this Section 3.2(a) shall be irrevocable. 
 
(a)    On the Put Option Payment Date, Ambac Assurance shall convey to the Master Trust, on behalf of the Sub-Trust, or its designee Preferred Stock with an aggregate liquidation
preference equal to the aggregate face amount of the ABC Securities outstanding on the Put Option Payment Date. In addition, the number of shares of Preferred Stock delivered shall equal the number of ABC Securities outstanding on the Put Option
Payment Date. The Preferred Stock shall be delivered free and clear of any defect in title, together with all transfer and registration documents (or all notices, instructions or other communications) as are necessary to convey title to the
Preferred Stock to the Master Trust, on behalf of the Sub-Trust (or its nominee). 
 
(b)    For avoidance of doubt, (1) any cash received by the Master Trust, on behalf of the Sub-Trust,
as interest or other payments earned on the principal amount of the Trust Property (net of fees and expenses and excluding any repayment of principal) and not distributed to Holders as of the Put Option Payment Date shall be distributed to Holders
and shall not be used to purchase shares of Preferred Stock; and (2) the amount of Preferred Stock purchased from Ambac Assurance shall be reduced by the amount, if any, by which the aggregate face 
 

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amount of ABC
Securities is reduced pursuant to principal or interest losses on Trust Property as a result of Defaults as required by the operation of Section 6.1(j) of the Declaration and Section 6(b) of the General Terms of the ABC Securities attached to the
Declaration as Appendix A on or before the Put Option Payment Date. 
 

	4.	 	Payments 

 
4.1    Upon receipt of a Put Notice, the Master Trust will allow the then current assets of the Sub-Trust to mature,
and will deliver the proceeds attributable to principal received upon maturity of the assets (after satisfying the Sub-Trust’s creditors, if any, and after any principal returned to holders of the ABC Securities pursuant to Section 6.1(j) of
the Declaration and Section 6(b) of the General Terms of the ABC Securities attached to the Declaration as Appendix A) to Ambac Assurance on the Put Option Payment Date. The amount of such payment shall be referred to herein as the “Put
Option Price.” 
 
4.2    Payment by the Master Trust, on behalf of the Sub-Trust, of the Put Option Price shall be made on or prior to 3:00 p.m. on the Put Option Payment Date and to the account of Ambac Assurance specified in the
Put Notice. 
 
4.3    Payment
of the Put Option Price by the Master Trust, on behalf of the Sub-Trust, shall be made as provided in Section 4.1 and Section 4.2 without setoff, claim, recoupment, deduction or counterclaim; provided, however, that if Ambac
Assurance exercises its option under Section 3 hereof at any time that it has failed to pay all or a portion of the Put Option Premium or the Delayed Put Option Premium, if any, and such failure has not been cured on or before the Put Option
Payment Date, the Master Trust, on behalf of the Sub-Trust, shall be entitled to set off against the Put Option Price such unpaid portion of the Put Option Premium or the Delayed Put Option Premium, as the case may be. 
 

	5.	 	Put Option Premium 

 
5.1    In consideration for the Master Trust’s agreement to purchase the Preferred Stock on behalf of the
Sub-Trust in accordance with the terms of this Agreement, Ambac Assurance agrees to pay to the Master Trust, on behalf of the Sub-Trust, in US dollars, on each Distribution Payment Date, an amount equal to the product of (A) the Auction Rate on the
ABC Securities for the respective Distribution Period less the Distribution Rate for such Distribution Period, (B) the aggregate face amount of the ABC Securities of the Sub-Trust outstanding at the time the Put Option Premium is calculated and (C)
a fraction, the numerator of which will be the 
 

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number of calendar days in the
respective Distribution Period, and the denominator of which will be 360 days. 
 
The amount derived in accordance with such formula shall be known herein as the “Put Option Premium.” 
 
If there is a Default during any Distribution Period, then Ambac Assurance agrees to pay to the Master Trust,
on behalf of the Sub-Trust, in US dollars on each Distribution Payment Date following receipt of the Delayed Put Option Premium Certificate an amount, as determined by the Trustee, equal to the product of (A) the Delayed Auction Rate on the ABC
Securities for the Delayed Auction Period less the Delayed Distribution Rate for such Distribution Period, (B) the aggregate face amount of the ABC Securities of the respective Sub-Trust outstanding at the time the Delayed Put Option Premium is
calculated and (C) a fraction, the numerator of which will be the number of calendar days in the respective Delayed Auction Period, and the denominator of which will be 360 days. 
 
The amount derived in accordance with such formula shall be known herein as the “Delayed Put Option
Premium.” 
 
5.2    The amount of the Put Option Premium shall be calculated by the Trustee and delivered in writing (the “Put Option Premium Certificate”), substantially in the form attached hereto as
Annex B, to Ambac Assurance prior to 5:00 p.m. on each Auction Date. The amount of the Delayed Put Option Premium shall be calculated by the Trustee and delivered in writing (the “Delayed Put Option Premium Certificate”) to
Ambac Assurance prior to 5:00 p.m. on the Delayed Auction Date. The Put Option Premium Certificate, and any Delayed Put Option Premium Certificate, also shall set forth the eligible assets held by the Sub-Trust, the anticipated yield earned on each
such asset, any anticipated fees to be paid or incurred by the Trustee on behalf of the Trust and the computation of the Put Option Premium, or the Delayed Put Option Premium, as the case may be, in each case for the respective Distribution Period
and the Delayed Auction Period, respectively, and shall be in the form attached hereto as Annex B. 
 
5.3    If the Put Option Premium, or the Delayed Put Option Premium, if any, is not paid on the date on which it is
due, interest shall accrue thereon at a rate equal to the maximum rate then in effect, during the five (5) day cure period set forth in Section 2.2(b) hereof until such Put Option Premium, or Delayed Put Option Premium, is paid. 
 

	6.	 	Obligations Absolute 

 

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6.1    The Master Trust, on behalf of the Sub-Trust, acknowledges that, provided Ambac Assurance has complied with the terms of this Agreement, the obligations of the Master Trust, on behalf of the Sub-Trust,
undertaken under this Agreement are absolute, irrevocable and unconditional irrespective of any circumstances whatsoever, including any defense otherwise available to the Master Trust, on behalf of the Sub-Trust, in equity or at law, including,
without limitation, the defense of fraud, any defense based on the failure of Ambac Assurance to disclose any matter, whether or not material, to the Master Trust, on behalf of the Sub-Trust, or any other person, and any defense of breach of
warranty or misrepresentation, and irrespective of any other circumstance which might otherwise constitute a legal or equitable discharge or defense of an insurer, surety or guarantor under any and all circumstances. The enforceability and
effectiveness of this Agreement and the liability of the Master Trust, on behalf of the Sub-Trust, and the rights, remedies, powers and privileges of Ambac Assurance under this Agreement shall not be affected, limited, reduced, discharged or
terminated, and the Master Trust, on behalf of the Sub-Trust, hereby expressly waives, to the fullest extent permitted by applicable law, any defense now or in the future arising by reason of: 
 
(a)    the illegality,
invalidity or unenforceability of all or any part of the Declaration; 
 
(b)    any action taken by Ambac Assurance; 
 
(c)    any change in the direct or indirect ownership or control of Ambac Assurance or of any shares
or ownership interests thereof; 
 
(d)    any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of or for the Master Trust, on behalf of the Sub-Trust; 
 
provided, however, that notwithstanding the provisions
of this Section 6.1, the Master Trust, on behalf of the Sub-Trust, shall have no further obligations under this Agreement after the termination of this Agreement. In addition, the breach of any covenant made in this Agreement by the Master
Trust, on behalf of the Sub-Trust, shall not terminate this Agreement or limit the rights of Ambac Assurance hereunder. 
 
6.2    For the avoidance of doubt, no failure or delay by Ambac Assurance in exercising its rights hereunder shall
operate as a waiver of its rights hereunder (except as specifically provided in this Agreement, including, without limitation, in respect of the notice periods and payment dates set forth in Section 3.2(a)) and, subject to the termination of
this Agreement not having occurred, Ambac Assurance may continue to exercise its rights hereunder at any time. 
 

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	7.	 	Covenants 

 
7.1    Ambac Assurance hereby covenants and agrees that, at all times prior to the earlier of the termination of this
Agreement or completion of the sale of the Preferred Stock to the Master Trust, on behalf of the Sub-Trust, pursuant to this Agreement, it shall not amend, restate, revise or otherwise alter the rights, terms and preferences of the Preferred Stock
whether by operation of merger, reorganization or otherwise, without the prior consent of the Master Trust, on behalf of the Sub-Trust, and it will not register the Preferred Stock with the Securities and Exchange Commission under the Securities Act
of 1933, as amended, on or before the Put Option Payment Date. 
 
7.2    The Master Trust, on behalf of the Sub-Trust, hereby covenants and agrees that, at all times prior to the earlier of the termination of this Agreement or completion of the sale of the Preferred Stock to the
Master Trust, on behalf of the Sub-Trust, pursuant to this Agreement, it shall not amend, restate, revise or otherwise alter the rights, terms and preferences of the ABC Securities whether by operation of merger, reorganization or otherwise and it
will not register the ABC Securities with the Securities and Exchange Commission under the Securities Act of 1933, as amended. 
 
7.3    Ambac Assurance hereby covenants and agrees that any Preferred Stock delivered to the Master Trust, on behalf
of the Sub-Trust, shall rank, at the time of delivery, (a) senior to the common stock of Ambac Assurance and (b) senior to or pari passu with the most senior preferred shares of Ambac then authorized by its Restated Articles of Amendment or then
issued and outstanding; provided that this covenant may be amended with the consent of Ambac Assurance and at least a Majority in Face Amount (as defined in the Declaration) of the ABC Securities. 
 
7.4    Ambac Assurance hereby covenants
and agrees that if Ambac Assurance’s financial strength rating is ever lowered while this Agreement remains effective, Ambac Assurance shall provide written notice to the Trustee, on behalf of the Sub-Trust, of such lowered rating.

 
7.5    Ambac Assurance
hereby covenants and agrees that it will not pay a dividend on its common stock pursuant to the first and second provisos of Section 4 of its Restated Articles of Incorporation unless it receives written assurance from Ambac Financial Group, Inc.
that it will use such dividends for the purposes permitted by such provisos. Such written assurance shall provide that the holders of the Preferred Stock shall be third party beneficiaries of, and entitled to enforce, the provisions of such
assurance as if they were parties 
 

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thereto. The agreements and
rights set forth in this Section 7.5 shall survive the exercise by Ambac Assurance of its rights under this Agreement, the issuance of the Preferred Stock and the liquidation of the Sub-Trust. 
 

	8.	 	This Agreement to Govern 

 
If there is any inconsistency between any provision of this Agreement and any other agreement, the provisions of this Agreement shall
prevail to the extent of such inconsistency but not otherwise. 
 

	9.	 	Representations and Warranties 

 
9.1    The Master Trust represents and warrants to Ambac Assurance, on behalf of the Sub-Trust, that, as of the date
hereof: 
 
(a)    the Master Trust is duly organized and validly existing under the Delaware Business Trust Act and has the power and authority to own its assets and to conduct the activities which it conducts; 
 
(b)    the Sub-Trust has
been duly formed by the Master Trust in accordance with its Declaration; 
 
(c)    its entry into, exercise of its rights and/or performance of or compliance with its obligations under this Agreement do not and will not violate (1) any law to which it is
subject, (2) any of its constitutional documents or (3) any agreement to which it is a party or which is binding on it or its assets; 
 
(d)    it has the power to enter into, exercise its rights and perform and comply with its obligations
under this Agreement and has taken all necessary action to authorize the execution, delivery and performance of this Agreement; 
 
(e)    it will obtain and maintain in effect and comply with the terms of all necessary consents,
registrations and the like of or with any government or other regulatory body or authority applicable to this Agreement; 
 

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(f)    its obligations under this Agreement are valid, binding and enforceable at law; 
 
(g)    it is not in default under any agreement to which it is a party or by which it or its assets is
or are bound and no litigation, arbitration or administrative proceedings are current or pending, which default, litigation, arbitration or administrative proceedings are material in the context of this Agreement; 
 
(h)    it is not necessary
or advisable in order to ensure the validity, effectiveness, performance or enforceability of this Agreement that any document be filed, registered or recorded in any public office or elsewhere; 
 
(i)    each of the above
representations and warranties will be correct and complied with in all respects during the term of this Agreement; 
 
(j)    no consent, approval, authorization or order of any court or governmental authority, agency,
commission or commissioner or other regulatory authority is required for the consummation by the Master Trust, on behalf of the Sub-Trust, of the transactions contemplated by this Agreement; and 
 
(k)    assuming compliance
with the transfer restrictions with respect to the ABC Securities set forth in the Declaration, neither the Sub-Trust nor the Master Trust is required to register with the Securities and Exchange Commission as an investment company under the
Investment Company Act of 1940, as amended. 
 
9.2    Ambac Assurance represents and warrants to the Master Trust, on behalf of the Sub-Trust, that, as of the date hereof: 
 
(a)    it is duly organized and validly existing as a corporation under
the corporate law statutes of the State of Wisconsin and has the power and authority to own its assets and to conduct the activities which it conducts; 
 
(b)    its entry into, exercise of its rights and/or performance of or compliance with its obligations
under this Agreement do not and will not violate (1) any law to which it is subject, (2) any of its constitutional documents or (3) any agreement to which it is a party or which is binding on it or its assets; 
 

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(c)    it has the power to enter into, exercise its rights and perform and comply with its obligations under this Agreement and has taken all necessary action to authorize the execution, delivery and performance
of this Agreement; 
 
(d)    it will obtain and maintain in effect and comply with the terms of all necessary consents, registrations and the like of or with any government or other regulatory body or authority applicable to this
Agreement; 
 
(e)    its obligations under this Agreement are valid, binding and enforceable at law; 
 
(f)    it is not in default under any agreement to which it is a party or by which it or its assets is
or are bound and no litigation, arbitration or administrative proceedings are current or pending, which default, litigation, arbitration or administrative proceedings are material in the context of this Agreement; 
 
(g)    it is not necessary
or advisable in order to ensure the validity, effectiveness, performance or enforceability of this Agreement that any document be filed, registered or recorded in any public office or elsewhere; 
 
(h)    each of the above
representations and warranties will be correct and complied with in all respects during the term of this Agreement; 
 
(i)    no consent, approval, authorization or order of any court or governmental authority, agency,
commission or commissioner or other regulatory authority is required for the consummation by Ambac Assurance of the transactions contemplated by this Agreement and the sale of the Preferred Stock to the Master Trust, on behalf of the Sub-Trust,
pursuant to the terms hereof need not be registered with the Securities and Exchange Commission under the Securities Act of 1933, as amended; and 
 
(j)    as of the Put Option Payment Date, the Preferred Stock will be duly authorized for issuance and
sale to the Master Trust, on behalf of the Sub-Trust, pursuant to this Agreement and, when issued and delivered by Ambac Assurance pursuant to this Agreement against payment of the Put Option Price, will be validly issued, fully paid and
nonassessable; the Preferred Stock will conform in all respects to the terms of the Preferred Stock set forth in the Restated Articles of Incorporation of Ambac Assurance attached hereto as Annex C; and the Preferred Stock will not be subject
to preemptive or other similar rights. 
 

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	10.	 	Severability 

 
10.1    Any provision of this Agreement which is or becomes illegal, invalid or unenforceable in any jurisdiction may
be severed from the other provisions of this Agreement without invalidating the remaining provisions hereof, and any such illegality, invalidity or unenforceability shall not invalidate or render illegal or unenforceable such provision in any other
jurisdiction. 
 

	11.	 	Notices 

 
11.1    Each communication to be made hereunder shall be deemed to have been given (i) five (5) days after deposit of
such communication with a reputable national courier service addressed to such party at its address specified below (or at such other address as such party shall specify to the other party hereto in writing) or (ii) when transmitted by facsimile to
such party at its facsimile number specified below (or at such other facsimile number as such party shall specify to the other party hereto in writing): 
 
If to Ambac Assurance at: 
Ambac Assurance Corporation 
One State Street Plaza

New York, New York 10004 
Attention:    Robert Starr, Treasurer 
Facsimile:    (212) 208-3108 
 
 
Copy
to:    Kevin Doyle, General Counsel 
 
 
If to the Master Trust or Sub-Trust at: 
 
The Bank of New York (Delaware) 
P.O. Box 6973 
White Clay Center 
Route 273 
Newark, Delaware 19714 
Attention:    Kristine Gullo 
Facsimile:    (302) 283-8279 
 
 
Copies to: 
The Bank of New York 
Corporate Trust Administration 
 

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5 Penn Plaza 
New York, NY 10001 
Attention:    Dealing and Trading Group 
Facsimile:    (212) 896-7295 
 

	12.	 	Counterparts 

 
This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts each of which
when executed and delivered shall constitute an original, but all the counterparts shall together constitute but one and the same instrument. 
 

	13.	 	Benefit of Agreement and Disclaimer 

 
13.1    This Agreement shall enure to the benefit of each party hereto and its successors and assigns and transferees;
provided that neither party hereto may transfer its rights and obligations hereunder, by operation of law or otherwise, without the prior written consent of the other party. 
 

	14.	 	Amendment and Assignment 

 
14.1    This Agreement may not be amended or modified in any respect, nor may any provision be waived, without the
written agreement of both parties. No waiver by one party of any obligation of the other hereunder shall be considered a waiver of any other obligation of such party. 
 
14.2    Neither the Master Trust, on behalf of the Sub-Trust, nor Ambac Assurance may
assign its rights or obligations under this Agreement to any other person, except that Ambac Assurance may assign its rights and obligations under this Agreement to another person as a result of a merger of Ambac Assurance with another person or as
a result of a sale of all or substantially all of the assets of Ambac Assurance to another person if the other person expressly assumes all of the rights and obligations of Ambac Assurance under this Agreement; and immediately following the merger
or sale of substantially all of its assets, the rating of the substitute preferred stock or the unsecured debt obligations of the other person is at least as high as the credit rating of the Preferred Stock or the general unsecured debt obligations
of Ambac Assurance, as the case may be (or if no such ratings exist, the financial strength rating of Ambac Assurance) immediately prior to the merger or sale. 
 

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	15.	 	Governing Law 

 
15.1    THIS AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK. 
 

	16.	 	Jurisdiction 

 
16.1    Each of the parties hereto irrevocably submits to the non-exclusive jurisdiction of the courts of the State of
New York in respect of any action or proceeding arising out of or in connection with this Agreement (“Proceedings”). Each of the parties hereto irrevocably waives, to the fullest extent permitted by applicable law, any objection
that it may now or hereafter have to the laying of the venue of any such Proceedings in the courts of the State of New York and any claim that any Proceeding brought in any such court has been brought in an inconvenient forum. Each of the Master
Trust, on behalf of the Sub-Trust, and Ambac Assurance agrees that it shall at all times have an authorized agent in the State of New York upon whom process may be served in connection with any Proceedings, and each of the Master Trust, on behalf of
the Sub-Trust, and Ambac Assurance hereby authorizes and appoints the Trustee to accept service of all legal process arising out of or connected with this Agreement in the State of New York and service on such person (or substitute) shall be deemed
to be service on the Master Trust, on behalf of the Sub-Trust, or Ambac Assurance, as the case may be. Except upon such a substitution, the Master Trust, on behalf of the Sub-Trust, and Ambac Assurance shall not revoke any such authority or
appointment and shall at all times maintain an agent for service of process in the State of New York. If for any reason such person shall cease to act as agent for the service of process, the Master Trust, on behalf of the Sub-Trust, and Ambac
Assurance shall promptly appoint another such agent, and shall forthwith notify each other of such appointment. The submission to jurisdiction reflected in this paragraph shall not (and shall not be construed so as to) limit the right of any person
to take Proceedings in any court of competent jurisdiction, nor shall the taking of Proceedings in any one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction (whether concurrently or not) if and to the extent
permitted by law. 
 

	17.	 	Limitation of Liability 

 
17.1    It is expressly understood that (a) this Agreement is executed and delivered by The Bank of New York
(Delaware), not individually or personally but solely as Trustee, in the exercise of the powers and authority conferred and vested in it under the Declaration, (b) each of the representations, undertakings and agreements herein made on the part of
the Master Trust, on behalf of the Sub-Trust, is made and intended not as personal representations, 
 

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undertakings and agreements by
The Bank of New York (Delaware), but is made and intended for the purpose of binding only the Master Trust, on behalf of the Sub-Trust, and (c) under no circumstances shall The Bank of New York (Delaware) be personally liable for the breach or
failure of any obligation, representation, warranty or covenant made or undertaken by the Master Trust, on behalf of the Sub-Trust, under this Agreement or the other related documents. 
 

	18.	 	Replacement of Broker-Dealer 

 
18.1    Ambac Assurance shall have the right to direct the Trustee to replace the Broker-Dealer at any time that Ambac
Assurance believes, in the reasonable good faith exercise of its discretion, that the continued service of such Broker-Dealer could have an adverse impact on the rights and benefits conferred on Ambac Assurance pursuant to this Agreement.

 
18.2    In the event Ambac
Assurance elects to exercise its right described in Section 18.1, Ambac Assurance shall propose to the Trustee a replacement Broker-Dealer. The Trustee shall enter into an agreement with such replacement Broker-Dealer, unless it has a reasonable
basis for failing to do so, in which case the parties shall repeat such process until an acceptable Broker-Dealer is so selected. 
 
 

17 

 
IN WITNESS
WHEREOF the parties hereto have caused this Put Option Agreement to be duly executed as of the day and year first above written. 
 
 
 

	 ANCHORAGE FINANCE MASTER TRUST, on behalf of its series, Anchorage Finance Sub-Trust IV,

	
	 By:
	 	 The Bank of New York (Delaware), not in its individual capacity but solely as Trustee

	
	 By:
            
	 	

	 Name:
	 	 
	 Title:
	 	 
	
	 AMBAC ASSURANCE CORPORATION

	
	 By:
            
	 	

	 Name:
	 	 
	 Title:
	 	 

 
 

 
ANNEX A

 
Form of Put Notice 
 

	To:	 	Anchorage Finance Sub-Trust IV 

c/o Bank of New York (Delaware) 
P.O. Box 6973 
502 White Clay Center 
Route 273 
Newark, Delaware 19714 
 
with a copy to: 
 
The Bank of New York 
5 Penn Plaza 
New York, New York 10001 
Attention: Dealing and Trading Group 
 
Date: 
Ladies and Gentlemen: 
 
We refer to the put option agreement dated May 23, 2002 (as
heretofore amended, the “Put Option Agreement”) entered into between us and you. Terms defined in the Put Option Agreement (except where otherwise defined herein) shall have the same respective meanings herein. 
 
This notice is the notice for the purposes of Section
3.2(a) of the Put Option Agreement. We hereby require you to pay the Put Option Price on the Put Option Payment Date, which shall be
[                                        
        ] to the following account: 
 
[              ] 
 
Yours faithfully, 
 
 
for and on behalf of 
Ambac Assurance
Corporation 
 

 
Put Option
Premium Certificate 
 
Ambac Assurance
Corporation 
 
Put Option on Auction Market
Preferred Shares 

 

	 1.
	  	 Distribution Period: [first day of Period]-[last day of Period]: [number of days in
period—generally 28]

	
	 2.
	  	 Auction Rate determined for the Distribution Period on [insert date of Auction].
                        0.000000%
                    $ (0)

	
	 3.
	  	 
	 	  	 Issuer
	    	 Ratings
	  	 Purchase Price
	  	 Yield to Maturity
	  	 Interest

	
	    	
	  	
	  	
	  	

	
	 	  	 One Corp
	    	 A1+/P1
	  	 	  	 	  	 
	
	 	  	 Two Corp
	    	 A1+/P1
	  	 	  	 	  	 
	
	 	  	 Three Corp
	    	 A1+/P1
	  	 	  	 	  	 
	
	 	  	 Four Corp
	    	 A1+/P1
	  	 	  	 	  	 
	
	 	  	 Five Corp
	    	 A1+/P1
	  	 	  	 	  	 
	
	 	  	 Six Corp
	    	 A1+/P1
	  	 	  	 	  	 
	
	 	  	 Seven Corp
	    	 A1+/P1
	  	 	  	 	  	 
	
	 	  	 Eight Corp
	    	 A1+/P1
	  	 	  	 	  	 
	
	 	  	 Nine Corp
	    	 A1/P1
	  	 	  	 	  	 
	
	 	  	 Ten Corp
	    	 A1/P1
	  	 	  	 	  	 
	
	    	
	  	
	  	
	  	

	
	 4.
	  	 	    	 	  	 000,000,000
	  	 0.0%
	  	 $  0.0 

	
	 5.
	  	 Applicable Federal Funds Effective Rate: 0.00%
	  	 	  	 0.0%
	  	 $  0.0 

	
	 6.
	  	 Broker-Dealer Fee
	  	 	  	 0.0%
	  	 $(0.0)

	
	 7.
	  	 Trustee, Custodian and IPA Fees
	  	 	  	 0.0%
	  	 $(0.0)

	
	 8.
	  	 Asset Management Fee
	  	 	  	 0.0%
	  	 $(0.0)

	
	 9.
	  	 Tax Matters Partner Fee
	  	 	  	 0.0%
	  	 $(0.0)

	
	 10.
	  	 Servicing Agent Fee
	  	 	  	 0.0%
	  	 $(0.0)

	
	 11.
	  	 Other Fees and Expenses for the Distribution Period, if any
	  	 	  	 0.0%
	  	 $(0.0)

	
	 12.
	  	 Computation of Put Premium Due on [insert Distribution Payment Date] by 11:00 a.m. New York
Time:
	  	 	  	 0.0%
	  	 $(0.0)

	
	 13.
	  	 The asset manager is in compliance with the investment policy.EXECUTIVE AGREEMENT BY & BETWEEN ZDHI, ZDPI AND MR. GREGORY BARTON

Exhibit 10.36 
 
EXECUTIVE AGREEMENT 
 
THIS EXECUTIVE AGREEMENT (this “Agreement”) is made as of October 23, 2002, by and between
Ziff Davis Holdings Inc., a Delaware corporation (the “Company”), Ziff Davis Publishing Inc., a Delaware corporation and a wholly owned indirect subsidiary of the Company (“Publishing”), and Gregory Barton
(“Executive”). The Company, Publishing and Executive are sometimes collectively referred to herein as “Parties” and individually as “Party”. Certain definitions are set forth in Section 16 of this
Agreement. 
 
Executive desires to be employed by
Publishing, and Publishing desires to employ Executive and to be assured of its right to have the benefit of Executive’s services on the terms and conditions hereinafter set forth. In connection with such employment, the Company intends to
grant to Executive options to purchase shares of capital stock, on terms consistent with the terms of Section 2 of this Agreement. Such options shall be granted pursuant to the Company’s 2002 Employee Stock Option Plan (the
“Plan”). 
 
The Parties desire to
enter into this Agreement to (i) set forth the terms of the grant of the Options; (ii) provide the Company with certain rights in respect of the Executive Stock; (iii) set forth the terms and conditions of Executive’s employment with
Publishing; and (iv) set forth the obligation of Executive to refrain from competing with the Company and its Affiliates under certain circumstances as provided herein. 
 
The parties shall confirm in writing the date (the “Effective Date”) on which Executive
shall commence his employment with the Company; provided that the Effective Date shall be on or prior to November 11, 2002. 
 
NOW, THEREFORE, the Parties hereto agree as follows: 
 
A.    GRANT OF OPTIONS 
 
1.    Investor Rights Agreement.  As a condition precedent to the
Company’s obligations to grant to Executive the Options, Executive must execute and deliver to the Company a counterpart signature page of the Investor Rights Agreement, (pursuant to which Executive shall become a party thereto, and thereby
shall benefit from the rights and be subject to the obligations of one of the “New Stockholders” thereunder). 
 
2.    Stock Options. 
 
(a)    Grant.  In connection with Executive’s employment by the Company, the Company shall grant
to Executive options (each an “Option” and collectively, the “Options”) to purchase shares of Series D Preferred Stock, at an exercise price per share equal to $1,000; shares of Series A Preferred, at an exercise
price per share equal to $0.001; shares of Series B Preferred, at an exercise price per share equal to $1,000; and shares of Common Stock, at an exercise price per share equal to $0.001. The number of Options that Executive will be granted will be
determined by the Board of the Company as part of the Board’s granting of Options to various senior executives of the Company under the Plan. The form of option agreement pursuant to which the Options will be granted is attached hereto as
Exhibit A. 

 
(b)    Exercisable Only to Extent Vested.  The Options shall initially not be exercisable and thereafter shall be exercisable only to the extent deemed vested pursuant to Section 6 below.

 
(c)    Options
Term.  The Options shall expire at the close of business on, and in no event shall the Options be exercisable in whole or in part at any time after, the later of (i) the tenth anniversary of the Effective Date and (ii) a Sale of the
Company (the “Expiration Date”); provided that the Options shall be subject to earlier expiration as follows: 
 
(i)    If Executive’s employment with Publishing or any of its Affiliates under the control of the Company is
terminated for Cause or Executive breaches any of his obligations under any of Sections 12, 13 and 14 of this Agreement (except any breach which Executive carries the burden of proving is solely of a technical nature, is
immaterial and was inadvertent), then the Options shall immediately terminate and Executive shall forfeit all rights with respect to the Options, regardless of whether the Options, or any portion thereof, shall have become vested and/or exercisable
prior thereto; and 
 
(ii)    If Executive’s Company Employment terminates for any reason (other than a termination by the Company for Cause), any portion of the Options that have not vested pursuant to Section 6 below
shall expire upon such Termination and the Options shall not be exercisable in respect of such expired portion at any time thereafter. 
 
d)     Exercise Procedures.  Each Option shall be exercisable by Executive (or a transferee pursuant
to Section 7(h)(i) below), to the extent it has vested, is outstanding and is exercisable in accordance with the terms of this Agreement, at any time and from time to time prior to the Expiration Date (or any earlier date of expiration as
provided above) by delivering written notice to the Company and written acknowledgment that Executive has read and has been afforded an opportunity to ask questions of management of the Company regarding all financial and other information provided
to Executive regarding the Company, together with payment of the Exercise Price in respect of the Option Shares to be purchased in accordance with the provisions of this Agreement and such Option. As a condition to any exercise of an Option,
Executive shall permit the Company to deliver to Executive all financial and other information regarding the Company it believes necessary to enable Executive to make an informed investment decision, and Executive shall make all customary investment
representations which the Company requires. Executive shall be required, as a condition precedent to Executive’s right to exercise each Option, at Executive’s expense, to supply the Company with such evidence, agreements and other
assurances (including, but not limited to, opinions of counsel satisfactory to the Company) as the Company then may deem necessary or desirable, in form and substance satisfactory to the Company’s counsel, in order to establish to the
satisfaction of the Company that the sale of securities by reason of such exercise shall be in compliance with applicable law, including the Securities Act. In addition, as a condition to the issuance of Option Shares upon Executive’s exercise
of an Option, the Company may, in its sole discretion, require that Executive become a party to any stockholder agreement then in effect. Executive shall have no rights as a shareholder with respect to the Option Shares issuable under an Option
until and unless all conditions to the Company’s obligations to issue such Option Shares have been satisfied. 
 

2 

 
3.    Representations and Warranties by the Company.  In connection with the execution and delivery of this Agreement, the Company represents and warrants to Executive as of the date hereof that:

 
(a)    The authorized
capital stock of the Company consists of (i) 100,000,000 shares of Common Stock, of which approximately 2,400,000 shares are issued and outstanding; (ii) 400,000 shares of Series A Preferred, of which 329,172.5 shares are issued and outstanding,
(iii) 142,500 shares of Series B Preferred, of which 98,285.6 shares are issued and outstanding, (iv) 7,500 shares of Series C Preferred, of which 5,172.9 shares are issued and outstanding (and convertible into approximately 259,000,000 shares of
Common Stock), (v) 100,000 shares of Series D Preferred, of which 80,207.3 shares are issued and outstanding and (vi) 30,000 shares of Series E Preferred of which 28,526.4 shares are issued and outstanding. Under its current stock option plans the
Company is authorized to issue stock options for the purchase of up to 9,707,612 shares of Common Stock, 58,081 shares of Series A Preferred, 17,344 shares of Series B Preferred and 14,117 shares of Series D Preferred. 
 
(b)    The execution, delivery and
performance of this Agreement have been duly and validly authorized by the Company’s board of directors. This Agreement constitutes a valid and binding obligation of the Company, enforceable in accordance with its terms. 
 
4.    Representations and Warranties by
Executive.  In connection with the execution and delivery of this Agreement, Executive represents and warrants to the Company that: 
 
(a)    This Agreement constitutes the legal, valid and binding obligation of Executive, enforceable in accordance with
its terms, and the execution, delivery and performance of this Agreement by Executive does not and shall not conflict with, violate or cause a breach of any agreement, contract or instrument to which Executive is a party or any judgment, order or
decree to which Executive is subject. 
 
(b)    Executive is not a party to or bound by any employment agreement, noncompete agreement or confidentiality agreements with any person or entity other than the Company or Publishing, except that Executive is
party to confidentiality agreements with each of Alliance Semiconductor Corporation and Individual Investor Group, Inc., the performance of each of which by Executive shall not conflict with, violate or cause a breach of this Agreement or any
obligation or duty of Executive to any of the Company and its Affiliates. 
 
(c)    Executive has consulted with independent legal counsel regarding his rights and obligations under this Agreement and that he fully understands the terms and conditions contained herein. Executive
has obtained advice from persons other than the Company and its counsel regarding the tax effects of the transaction contemplated hereby. 
 
(d)    Executive has reviewed, or has had an opportunity to review, the Investor Rights Agreement. 
 
5.    Further
Acknowledgment.  Executive acknowledges and agrees that neither the issuance of securities or the Options to him by the Company nor any provision contained herein, therein or in any other agreement or document shall entitle Executive
to remain in the employment of Publishing or any of its Affiliates. 
 

3 

 
B.    VESTING AND REPURCHASE OF EXECUTIVE STOCK 
 
6.    Vesting.  Once granted, each Option shall vest in accordance with the following schedule, if as of each such date Executive is, and has been, continuously since the
Effective Date Employed by the Company: 
 

	 Date
	    	 Cumulative Percentage
 of Option Vested

	

	 First anniversary of Effective Date
 Second anniversary of Effective Date
 Third anniversary of Effective Date
 Fourth anniversary of Effective Date
 Fifth anniversary of Effective Date
	    	   20%
   40%
   60%
   80%
 100%

 
If Executive ceases to
be Employed by the Company on any date other than any anniversary date prior to the fifth anniversary of the Effective Date, the cumulative percentage of each Option to become vested shall be determined on a pro rata basis according to the number of
days elapsed since the prior anniversary date (or, if prior to the first anniversary date, since the Effective Date) and any portion of such Option that was not vested on such date on which Executive ceased to be Employed by the Company shall be
deemed unvested (except as provided in subparagraphs (i) and (ii) below). Notwithstanding the foregoing: 
 
(i)  the unvested portion of each Option shall become fully vested upon the consummation of a Sale of the Company if as of such
date, Executive is, and since the Effective Date has been, continuously Employed by the Company through the date of the consummation of such Sale of the Company; 
 
(ii)  if Publishing terminates Executive’s Company Employment without Cause on a date
following execution of the definitive agreement providing for a Sale of the Company, Executive has since the Effective Date and until such Termination been continuously Employed by the Company, and a Sale of the Company is consummated within 9
months following such Termination and on substantially the terms and with the purchaser(s) set forth in such agreement as in effect prior to such Termination, then the unvested portion of each Option shall become fully vested upon the consummation
of such Sale of the Company; and 
 
(iii)  if the Company grants Options in connection with an initial round of Option grants under the Plan to other senior executives (other than the CEO or COO) which have a vesting period which is shorter than the vesting
period set forth in this Section 6, the Company will review the vesting schedule set forth in this Section 6 to determine if a similar reduction in the vesting period herein is appropriate. 
 
7.    Purchase Option.

 
(a)    Generally.  Upon Termination, the Executive Stock, whether held by Executive or one or more Permitted Transferees, will be subject to purchase by the Company pursuant to the terms and
conditions set forth in this Section 7 (the “Purchase Option”). 
 

4 

 
(i)    Termination With Cause.  Upon a Termination with Cause, then the Company may elect to purchase all or any portion of the Executive Stock at a price per share equal to the lesser of the
Original Cost thereof and the Fair Market Value thereof. 
 
(ii)    Termination Without Cause; Resignation; Death or Incapacity.  Upon a Termination (A) by Publishing without Cause, (B) resulting from a resignation by Executive or (C) resulting from
Executive’s death or Incapacity, the Company may elect to purchase all or any portion of the Option Shares and any other Executive Stock (other than Option Shares) held by Executive or one or more Permitted Transferees at a price per share
equal to (i) in the case of Option Shares which have been issued upon exercise of this Option and such other Executive Stock, the Fair Market Value thereof as of the Termination Date, and (ii) in the case of Option Shares which are vested but
unissued, the repurchase price for each such Option Share will be (a) the Fair Market Value thereof as of the Termination Date, minus (b) the Exercise Price thereof. In the event the Company elects to exercise the Repurchase Option under this
Section 7, the portion of Executive’s Option which is unvested at such time shall terminate. 
 
(b)     Purchase Procedures.  After a Termination giving rise to a right of purchase under Section
7, the Company may elect to exercise the right to purchase Executive Stock (in the amounts and for the prices set forth in Section 7(a)) pursuant to the Purchase Option by delivering written notice (the “Purchase Notice”)
to the holder or holders of Executive Stock at any time prior to the date which is six months after the Termination Date. The Purchase Notice will set forth the number of shares of each class and type of Executive Stock to be acquired from such
holder(s), the aggregate consideration to be paid for such shares of Executive Stock and the time and place for the closing of the transaction. If any shares of Executive Stock are held by Permitted Transferees, the Company shall purchase the shares
each class and type of Executive Stock elected to be purchased from such holder(s) of Executive Stock pro rata according to the number of shares of such class and type of Executive Stock held by such holder(s) at the time of delivery of such
Purchase Notice (determined as nearly as practicable to the nearest share). 
 
(c)    Closing.  The closing of the transactions contemplated by this Section 7 will take place on the date designated by the Company in the Purchase Notice,
which date will not be more than 60 days after the delivery of such notice. The Company will pay for the shares of Executive Stock to be purchased pursuant to the Purchase Option by delivery of, a check payable to the holder(s) of such shares of
Executive Stock; provided however that if payment in cash by the Company is restricted by the financing or credit arrangements of the Company or any of its Subsidiaries or if the Company does not have available cash on hand in an
amount sufficient to pay the purchase price for the shares to be purchased, the Company may deliver a subordinate note or notes payable in up to three (3) equal annual installments, with the first installment due on the first anniversary of the
closing of such purchase, and bearing interest (payable quarterly in cash or, if so required by a lender to the Company or any of its Subsidiaries, in additional notes of the same tenor) at a rate of 7% per annum. In addition, the Company may pay
the purchase price for such Executive Stock by offsetting amounts outstanding under any indebtedness or obligations owed by the applicable Participant to the Company or any of its Subsidiaries. Any obligations of the Company under any notes issued
by the Company pursuant to this Section 7(c) shall be subject to any restrictive covenants to which the Company is subject at the time of such purchase. The Company will receive customary representations and warranties from Executive and any
other selling holders of Option Shares 
 

5 

 
regarding the sale of the
applicable Option Shares, including but not limited to the representation that such seller has good and marketable title to such Option Shares to be transferred, free and clear of all liens, claims and other encumbrances. 
 
(d)    Restrictions on
Repurchase.  Notwithstanding anything to the contrary contained in this Agreement, all repurchases of Executive Stock by the Company shall be subject to applicable restrictions contained in the Delaware General Corporation Law and in
the Company’s and its Subsidiaries’ debt and equity financing agreements. If any such restrictions prohibit the repurchase of Executive Stock hereunder which the Company is otherwise entitled to make, the time periods in this Section
7 applicable to repurchases by the Company, of Executive Stock shall be suspended and shall resume at such time as the Company is permitted to do so under such restrictions, so that the Company may make such repurchases and purchases of
Executive Stock during the balance of such period following such time as the Company becomes permitted to make such purchases under such restrictions. 
 
(e)    Termination of Purchase Right.  The right of the Company to purchase shares of Executive Stock
pursuant to this Section 7 shall terminate upon the earlier of a Sale of the Company or an Initial Public Offering (as defined in the Plan) of the Company. 
 
(f)    Additional Restrictions on Transfer. 
 
(i)    In addition to the restrictions on
Transfer of Options and the Option Shares set forth in the Plan, until the fifth anniversary of the Effective Date, Executive shall not Transfer any Executive Stock except (A) to a Permitted Transferee in compliance with the provisions of Section 2D
of the Investor Rights Agreement (other than clause (i) thereof), (B) the sale of Executive Stock pro rata with WS, based on holdings of Common Stock on a fully-diluted basis, in a registered public offering effected pursuant to Section 9 or Section
10 of the Investor Rights Agreement, (C) sales of Executive Stock pursuant to Section 2C of the Investor Rights Agreement, or (D) if, at any time after the Company consummates a public offering of Common Stock which is registered under the
Securities Act and thereafter WS sells shares of Common Stock pursuant to Rule 144 promulgated under the Securities Act, then at any time thereafter Executive may sell up to the number of shares of Common Stock equal to (x) the product of (i) the
number of shares of Common Stock then held by Executive and constituting Executive Stock, multiplied by (ii) a fraction, the numerator of which is the aggregate number of shares of Common Stock sold by WS pursuant to Rule 144 and the denominator of
which is the aggregate, maximum number of shares of Common Stock held by WS, calculated on a fully-diluted basis (e.g., including shares issuable upon conversion of shares of stock held by WS) at any time after the Effective Date, minus (y)
the aggregate number of shares of Common Stock sold by Executive at or prior to such time pursuant to Rule 144. The restrictions set forth in this Section 7(f)(i) shall terminate upon the consummation of a Sale of the Company. Notwithstanding
anything in this Agreement to the contrary, Executive shall not Transfer any interest in the Option except pursuant to applicable laws of descent and distribution. 
 
(ii)    All Executive Stock is subject to the additional restrictions on Transfer set
forth in the Investor Rights Agreement. 
 

6 

 
(iii)    In addition to any other legend required pursuant to the Investor Rights Agreement or otherwise, any certificates representing the Executive Stock shall bear the following legend: 
 
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE
ORIGINALLY ISSUED ON                          , 2002, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR UNDER ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION THEREUNDER. THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER, CERTAIN PURCHASE OPTIONS AND CERTAIN OTHER AGREEMENTS SET FORTH IN AN AMENDED AND RESTATED EXECUTIVE AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL
HOLDER HEREOF DATED AS OF OCTOBER 23, 2002, A COPY OF WHICH MAY BE OBTAINED BY THE HOLDER HEREOF AT THE COMPANY’S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE.” 
 
(iv)    Opinion of Counsel.  Executive may not sell, transfer or dispose
of any Executive Stock (except pursuant to an effective registration statement under the Securities Act) without first delivering to the Company an opinion of counsel reasonably acceptable in form and substance to the Company that registration under
the Securities Act or any applicable state securities law is not required in connection with such transfer. 
 
C.    EMPLOYMENT PROVISIONS 
 
8.    Employment.  Publishing shall employ Executive, and Executive hereby accepts employment with
Publishing, upon the terms and conditions set forth in this Agreement for the period beginning on the Effective Date and ending as provided in Section 11 hereof (the “Employment Period”). 
 

7 

 
9.    Position and Duties. 
 
(a)    During the Employment Period, Executive shall serve as the Executive Vice President, General Counsel and Secretary of Publishing and shall have the normal duties, responsibilities and authority
implied by such positions. Executive shall hold similar positions with the Company and Ziff Davis Media Inc. (“Media”) as well as any entity controlled by the Company which the Board determines to be a key affiliate, and Executive
shall have the right to serve in the same positions with respect to all other Affiliates controlled by the Company except to the extent (i) the Company’s Chief Executive Officer (“CEO”) approves the election of another person
to any such position, or (ii) applicable law precludes Executive from holding such positions in a foreign entity, provided that Executive shall not be entitled to any additional compensation for serving in such positions. So long as Executive
remains employed in each of such positions with Publishing, the Company, Media and each of such key Affiliates, Executive shall be deemed to be “Employed by the Company” for purposes hereof, and if Executive ceases for any reason to
be employed in any of such positions with any of such entities, Executive will be deemed to be no longer “Employed by the Company”, and his “Company Employment” shall be deemed to have ceased or terminated. For the
avoidance of doubt, Executive will be deemed to have resigned from “Company Employment” if Executive resigns from any of such positions with Publishing, the Company, Media or any of such key Affiliates. 
 
(b)    Executive shall report directly to
the CEO and the Chief Operating Officer (“COO”) of the Company and shall devote his best efforts and substantially all of his business time and attention (except for vacation periods contemplated hereby, periods of illness or other
incapacity, reasonable time spent with respect to civic and charitable activities, service on the boards of directors of other companies as approved by the Board of the Company, provided that none of such activities shall interfere with
Executive’s duties to Publishing, and other permitted absences, if any, for which senior executive employees of Publishing are generally eligible from time to time under Publishing’s policies) to the business and affairs of Publishing and
its Affiliates. Executive shall perform Executive’s duties and responsibilities to the best of Executive’s abilities in a diligent, trustworthy, businesslike and efficient manner. 
 
10.    Base Salary; Benefits and
Bonuses. 
 
(a)    During
the Employment Period, Executive’s base salary shall be $250,000 per annum, subject to an annual cost of living increase at the beginning of each calendar year beginning January 1, 2005 at a rate equal to the increase in the Consumer Price
Index—All Urban Consumers for the New York area during the prior year (but subject to a minimum annual increase of 2%), or such higher rate as the Board of the Company may designate from time to time (the “Base Salary”), which
salary shall be payable by Publishing in regular installments in accordance with Publishing’s general payroll practices and shall be subject to customary withholding. 
 
(b)    In addition to the Base Salary, during the Employment Period Executive shall be
eligible to receive an annual bonus (the “Bonus”) as follows: (i) with regard to calendar year 2003, Executive shall have the opportunity to earn an annual target Bonus of up to $150,000, so long as Executive remains Employed by the
Company through December 31, 2003 (or if Executive’s employment is terminated prior to December 31, 2003 as a result of (A) termination 
 

8 

 
by Publishing without Cause,
(B) resignation by Executive for Good Reason or (C) Executive’s death or Incapacity) and based upon the achievement of performance targets for such calendar year determined by the CEO and COO and the Board of the Company, which targets will
include both quantitative and qualitative objectives, provided that Executive’s Bonus in respect of calendar year 2003 will not be less than $75,000 ($50,000 of such guaranteed amount shall be paid on or about January 2, 2003); and (ii) with
regard to subsequent calendar years, Executive’s Bonus opportunity shall be in an amount determined by the CEO and COO and shall be based upon the achievement of performance targets determined by the CEO and COO. 
 
(c)    During the Employment Period, (i)
Executive shall be entitled to participate in all of Publishing’s employee benefit plans and programs for which senior executive employees of Publishing are generally eligible, which shall include, but shall not be limited to, health insurance,
dental insurance, life insurance, short-term and long-term disability insurance and participation in Publishing’s 401(k) plan and (ii) Executive shall be eligible for four (4) weeks of paid vacation in accordance with the policies of
Publishing. Executive’s right to participate in any employee benefit plans or programs of Publishing shall be subject to Publishing’s right to amend, modify or terminate any such plan or program in accordance with its terms and applicable
law and subject in each case to any applicable waiting periods or other restrictions contained in such benefit plans or programs. 
 
(d)    Publishing shall reimburse Executive for all reasonable business expenses incurred by Executive in the course
of performing Executive’s duties under this Agreement which are consistent with Publishing’s policies in effect from time to time for senior executive employees of Publishing with respect to travel, entertainment and other business
expenses, subject to Publishing’s requirements with respect to reporting and documentation of such expenses. 
 
11.    Term; Termination; Severance. 
 
(a)    The Employment Period commenced as of the Effective Date and shall terminate on
the fifth anniversary of the Effective Date; provided that (i) the Employment Period shall terminate prior to such date upon Executive’s death or Incapacity; (ii) the Employment Period may be terminated by Publishing at any time prior to
such date with Cause or without Cause; and (iii) the Employment Period may be terminated by Executive at any time for Good Reason or other than for Good Reason. 
 
(b)    Upon any Termination, Executive shall be entitled to receive Executive’s Base
Salary earned through the Termination Date, prorated on a daily basis together with all accrued but unpaid vacation time earned by Executive during the calendar year in which such Termination occurs and any Bonus in respect of a prior, completed
calendar year which is then due and owing and has not been paid. Except as set forth in Section 11(d), Executive shall not be entitled to receive Executive’s Base Salary or any bonuses or other benefits from Publishing for any period
after the Termination Date. 
 
(c)    In the event Executive’s employment is terminated by Publishing with Cause, upon a resignation by Executive from Company Employment other than for Good Reason, or upon Executive’s death or
Incapacity, or upon any Termination on or after the fifth anniversary 
 

9 

 
of the Effective Date,
Publishing shall have no obligation to make any severance or other similar payment to or on behalf of Executive. 
 
(d)    In the event that Executive’s employment is terminated by Publishing without Cause or upon a resignation
by Executive from Company Employment for Good Reason (in either case prior to the fifth anniversary of the Effective Date), following such Termination and upon execution and delivery by Executive within 30 days after the Termination Date of a
general release in favor of the Company and its Affiliates, in form and substance satisfactory to Publishing, Publishing shall pay Executive his annual Base Salary (as in effect on the Termination Date) and provide Executive health insurance
benefits through the first anniversary of the Termination Date. Such severance payments shall not be subject to reduction for any income earned by Executive from other sources after Termination (and, consequently, Executive shall have no duty to
mitigate Publishing’s severance obligations). After payment of the severance amounts described in this Section 11(d), Publishing shall have no obligation to make any further severance or other payment or provide any other benefit to or
on behalf of Executive. Notwithstanding the foregoing, in the event that Executive shall breach any of Executive’s obligations under any of Sections 12, 13 and 14 of this Agreement (except any breach which Executive carries
the burden of proving is solely of a technical nature, is immaterial and was inadvertent), then, in addition to any other rights that Publishing or the Company may have under this Agreement or otherwise, Publishing shall be relieved from and shall
have no further obligation to pay Executive any amounts to which Executive would otherwise be entitled pursuant to this Section 11. Notwithstanding anything herein to the contrary, in the event Executive’s employment is terminated prior
to December 31, 2003 as a result of (A) termination by Publishing without Cause, (B) resignation by Executive for Good Reason or (C) Executive’s death or Incapacity, Publishing also shall pay Executive, within 30 days of Termination but subject
to Executive’s execution and delivery within such period of a general release in favor of the Company and its Affiliates in form and substance satisfactory to Publishing, an amount equal to (x) $75,000 minus (y) the portion of Executive’s
calendar year 2003 Bonus that Publishing already had paid Executive prior to Termination. 
 
B.    ADDITIONAL AGREEMENTS 
 
12.    Confidential Information.  Executive acknowledges that by reason of Executive’s duties to
and association with Publishing and its Affiliates, Executive will have access to and will become informed of Confidential Information (as defined in Section 16 below) which is a competitive asset of Publishing and/or its Affiliates. Executive
agrees to keep in strict confidence and not, directly or indirectly, make known, disclose, furnish, make available or use, any Confidential Information, except for use in Executive’s regular authorized duties on behalf of Publishing and its
Affiliates. Executive acknowledges that all documents and other property including or reflecting Confidential Information furnished to Executive by Publishing or any of its Affiliates or otherwise acquired or developed by Publishing or any of its
Affiliates or Executive or known by Executive shall at all times be the property of Publishing and its Affiliates. Executive shall take all necessary and appropriate steps to safeguard Confidential Information and protect it against disclosure,
misappropriation, misuse, loss and theft. Executive shall deliver to Publishing at the termination of the Employment Period, or at any other time Publishing may request, all memoranda, notes, plans, records, reports, computer tapes, printouts and
software and other documents and data (and copies thereof) relating to the Confidential 
 

10 

Information, Work Product (as defined in Section 16 below) or the business of Publishing or any of its
Affiliates which Executive may then possess or have under Executive’s control. 
 
13.    Inventions and Patents. 
 
(a)    Executive acknowledges that all Work Product is the exclusive property of Publishing. Executive hereby assigns
all right, title and interest in and to all Work Product to Publishing. Any copyrightable works that fall within the Work Product will be deemed “works made for hire” under Section 201(b) of the 1976 Copyright Act, and Publishing shall own
all of the rights comprised in the copyright therein; provided, however, that to the extent such works may not, by operation of law, constitute “works made for hire,” Executive hereby assigns to Publishing all right, title and interest
therein. 
 
(b)    Executive
shall promptly and fully disclose all Work Product to Publishing and shall cooperate and perform all actions reasonably requested by Publishing (whether during or after the Employment Period) to establish, confirm and protect Publishing’s
right, title and interest in such Work Product. Without limiting the generality of the foregoing, Executive agrees to assist Publishing, at Publishing’s expense, to secure Publishing’s rights in the Work Product in any and all countries,
including the execution of all applications and all other instruments and documents which Publishing shall deem necessary in order to apply for and obtain rights in such Work Product and in order to assign and convey to Publishing the sole and
exclusive right, title and interest in and to such Work Product. If Publishing is unable because of Executive’s mental or physical incapacity or for any other reason (including Executive’s refusal to do so after request therefor is made by
Publishing) to secure Executive’s signature to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering Work Product belonging to or assigned to Publishing pursuant to Section
13(a) above, then Executive hereby irrevocably designates and appoints Publishing and its duly authorized officers and agents as Executive’s agent and attorney-in-fact to act for and in Executive’s behalf and stead to execute and file
any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of patents or copyright registrations thereon with the same legal force and effect as if executed by Executive. Executive agrees not to apply
for or pursue any application for any United States or foreign patents or copyright registrations covering any Work Product other than pursuant to this paragraph in circumstances where such patents or copyright registrations are or have been or are
required to be assigned to Publishing. 
 
14.    NonCompete, Non-Solicitation. 
 
(a)    In further consideration of the compensation to be paid to Executive hereunder, the Executive Stock to be made available for Executive’s purchase and the grant of the
Options, Executive acknowledges that in the course of Executive’s employment with Publishing and its Affiliates, Executive will during the Employment Period become familiar with Publishing’s and its Affiliates’ (and their
predecessors’) trade secrets, business plans and business strategies and with other Confidential Information concerning Publishing and its Affiliates and that Executive’s services have been and shall be of special, unique and extraordinary
value to Publishing and its Affiliates. Therefore, Executive agrees that, during the Employment Period and for one (1) year thereafter (such period, the “Noncompete Period”), Executive shall not directly or indirectly own any
interest in, manage, control, participate in (whether as an officer, director, employee, partner, 
 

11 

 
agent, representative or
otherwise), consult with, render services for, or in any other manner engage in, any of the businesses (i) of International Data Group, Inc., CMP Media, Inc. (a subsidiary of United News & Media PLC), or CNET Networks, Inc. (the
“Restricted Persons”), (ii) of any successor, assignee, partner, joint venture or collaboration partner, subsidiary, division or Affiliate of any of the Restricted Persons, or (iii) in which any of the Restricted Persons owns an
interest or participates, which any of the Restricted Persons manages or controls (whether as an officer, director, employee, partner, agent, representative or otherwise), or with which any of the Restricted Persons consults or to which any of the
Restricted Persons otherwise provides management or financial support. Nothing herein shall prohibit Executive from being an owner, indirectly through a mutual fund or other similar pooled investment vehicle, of a passive investment in the stock of
a corporation which is publicly traded, so long as Executive has no other participation in the business of any such corporation. 
 
(b)    During the Employment Period and for one (1) year thereafter, Executive shall not directly or indirectly
through another Person (i) induce or attempt to induce any employee of Publishing or any Affiliate to leave the employ of Publishing or such Affiliate, or in any way interfere with the relationship between Publishing or any Affiliate and any
employee thereof, (ii) hire any person who was an employee of Publishing or any Affiliate at any time during the one year period prior to the termination of the Employment Period, (iii) call on, solicit or service any customer, supplier, licensee,
licensor, franchisee or other business relation of Publishing or any Affiliate in order to induce or attempt to induce such Person to cease or reduce doing business with Publishing or such Affiliate, or in any way interfere with the relationship
between any such customer, supplier, licensee or business relation and Publishing or any Affiliate, including, without limitation, making any negative statements or communications about Publishing or its Affiliates, or (iv) directly or indirectly
acquire or attempt to acquire any business in the United States of America to which Publishing or any of its Affiliates has made an acquisition proposal prior to the Termination Date relating to the possible acquisition of such business (an
“Acquisition Target”) by Publishing or any of its Affiliates, or take any action to induce or attempt to induce any Acquisition Target to consummate any acquisition, investment or other similar transaction with any Person other than
Publishing or any of its Affiliates. 
 
15.    Enforcement.  If, at the time of enforcement of any of Sections 12, 13 and 14 of this Agreement, a court shall hold that the duration, scope, or area restrictions
stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum period, scope or geographical area reason-able under such circumstances shall be substituted for the stated period, scope or area and that
the court shall be allowed and directed to revise the restrictions contained herein to cover the maximum period, scope and area permitted by law. Because Executive’s services are unique and because Executive has access to Confidential
Information and Work Product, the parties hereto agree that money damages would not be an adequate remedy for any breach of this Agreement. Therefore, in the event a breach or threatened breach of this Agreement, Publishing or its successors or
assigns may, in addition to other rights and remedies existing in their favor, apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce, or prevent any violations of, the provisions
hereof (without posting a bond or other security). In addition, in the event of an alleged breach or violation by Executive of Section 14, the period set forth in such Section shall be tolled until such breach or violation has been duly
cured. Executive agrees that 
 

12 

 
the restrictions contained in
Section 14 are reasonable and that Executive has received consideration in exchange therefor. 
 
16.    Definitions. 
 
“Affiliate” of a Person means any other person, entity or investment fund controlling, controlled by or under common
control with the Person and, in the case of a Person which is a partnership, any partner of the Person. 
 
“Board” means the board of directors of the specified Person. 
 
“Cause” means (i) the commission by Executive
of a felony or a crime involving moral turpitude, (ii) the commission of any other act or omission by Executive constituting fraud against the Company or any of its Subsidiaries, or the violation of the duty of loyalty to the Company and/or its
Subsidiaries under applicable law, (iii) substantial failure by Executive to act as reasonably directed by the CEO, COO or the Board of the Company which failure, if curable, is not cured within 15 days after notice thereof to Executive, (iv)
willful or reckless misconduct or, if curable, gross negligence by Executive which is not cured within 15 days after written notice thereof to Executive, with respect to the Company or any of its Subsidiaries, or (v) any other material breach by
Executive of this Agreement or company policy established by the CEO, COO or the Board of the Company, which breach, if curable, is not cured within 15 days after written notice thereof to Executive. 
 
“Certificate of Incorporation” means the
Company’s certificate of incorporation in effect at the time as of which any determination is being made. 
 
“Code” means the Internal Revenue Code of 1986, as amended, and any reference to any particular Code section shall be
interpreted to include any revision of or successor to that section regardless of how numbered or classified. 
 
“Confidential Information” means all information of a confidential or proprietary nature (whether or not specifically
labeled or identified as “confidential”), in any form or medium, that is or was disclosed to, or developed or learned by, Executive in connection with Executive’s relationship with the Company or any of its Affiliates prior to the
date hereof or during the Employment Period and that relates to the business, products, services, financing, research or development of the Company or any of its Affiliates or their respective suppliers, distributors or customers. Confidential
Information includes, but is not limited to, the following: (i) internal business information (including information relating to strategic and staffing plans and practices, business, training, marketing, promotional and sales plans and practices,
cost, rate and pricing structures, accounting and business methods); (ii) identities of, individual requirements of, specific contractual arrangements with, and information about, any of the Company’s or any of its Affiliates’ suppliers,
distributors and customers and their confidential information; (iii) trade secrets, know-how, compilations of data and analyses, techniques, systems, formulae, research, records, reports, manuals, documentation, models, data and data bases relating
thereto; (iv) inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports and all similar or related information (whether or not patentable); and (v) Acquisition Targets and potential acquisition candidates.
Confidential 
 

13 

 
Information shall not include
information that Executive can demonstrate: (a) is or becomes publicly known through no wrongful act or breach of obligation of confidentiality; (b) was rightfully received by Executive from a third party (other than ZD, Inc. or any of its
successors or Affiliates) without a breach of any obligation of confidentiality by such third party; (c) was known to Executive prior to his employment with Publishing and its Affiliates, or (d) is required to be disclosed pursuant to any applicable
law or court order; provided, however, that Executive provides Publishing with prior written notice of the requirement for disclosure that details the Confidential Information to be disclosed and cooperates with Publishing to preserve
the confidentiality of such information to the extent possible. 
 
“Common Stock” means the Company’s Common Stock, $.001 par value per share. 
 
“Executive Stock” means, collectively, the Option Shares (including any Unexercised Option Shares) and any other Stock or
equity securities hereafter acquired or acquirable by Executive. Such Stock shall continue to be Executive Stock in the hands of any holder (except for the Company and transferees in a Public Sale consummated in accordance with this Agreement and
the Investor Rights Agreement), and except as otherwise provided herein, each such other holder of Executive Stock shall succeed to all rights and obligations attributable to Executive as a holder of Executive Stock hereunder. Executive Stock shall
include both vested and unvested Executive Stock and shall include interests in the Company issued with respect to Executive Stock including, without limitation, by way of any recapitalization. 
 
“Exercise Price” means with respect to an
Option Share, the amount payable by Executive to the Company in connection with the exercise of an Option to purchase such Option Share. 
 
“Fair Market Value” shall mean: 
 
(a)    with respect to each share of Executive Stock which is listed on any stock exchange or quoted in the NASDAQ
System or the over-the-counter market, the average of the closing prices of the sale of any such share on all stock exchanges on which such security may at the time be listed, or, if there have been no sales on any such exchange on any day, the
average of the highest bid and lowest asked prices on all such exchanges at the end of such day, or, if on any day such security is not so listed, the average of the representative bid and asked prices quoted in the NASDAQ System as of 4:00 P.M.,
New York time, or, if on any day such security is not quoted in the NASDAQ System, the average of the highest bid and lowest asked prices on such day in the domestic over-the-counter market as reported by the National Quotation Bureau Incorporated,
or any similar successor organization, in each such case averaged over a period of 21 days consisting of the day as of which the Fair Market Value is being determined and the 20 consecutive business days prior to such day; and 
 
(b)    with respect to each share of
Executive Stock which is not, as of the date of determination, listed on any stock exchange or quoted in the NASDAQ System or the over-the-counter market, the Fair Market Value thereof shall be the amount which each such share of Executive Stock
would receive upon a liquidating distribution, in accordance with the Certificate 
 

14 

 
of Incorporation, of the
proceeds of a sale of the Company and its Subsidiaries as a going concern at market value as determined in good faith mutually by the Board of the Company and Executive and in accordance with the Certificate of Incorporation and determined as of the
Termination Date; provided that if the parties cannot agree on Fair Market Value within 30 days after the delivery of the Purchase Notice, the Fair Market Value will be decided by a mutually acceptable independent investment bank and if the
parties are unable to agree on such an investment bank, one shall be chosen by lot from four nationally recognized investment banks, two of which shall be designated by the Company and two of which shall be designated by Executive. The determination
of the investment bank pursuant hereto will be final and binding and the fees and expenses of such investment bank shall be shared equally by the Company and Executive. Any determination of Fair Market Value of any Share of Executive Stock shall
take into account, in the event of any resignation by Executive other than for Good Reason, any diminution in the value of the Company as a result of the loss of Executive’s services to the Company and its Affiliates. 
 
“Good Reason” means the occurrence, without
Executive’s consent, of any of the following: (a) unless corrected within 15 days after written notice by Executive to CEO, COO and the Board of the Company of objection thereto, the assignment to Executive of any significant duties materially
inconsistent with Executive’s status as the Executive Vice President, General Counsel and Secretary of the Company (and its controlled Affiliates other than foreign entities where prohibited by applicable law and except to the extent the CEO
approved the election of another person to any such position) or a diminution of Executive’s title(s), or a substantial adverse alteration in the nature or status of Executive’s responsibilities; (b) a reduction in Executive’s annual
Base Salary as contemplated hereby, except for across-the-board salary reductions similarly affecting all senior executives of Publishing; or (c) the Board of the Company requires Executive to relocate from the New York metropolitan area.

 
“Incapacity” means the
disability of Executive caused by any physical or mental injury, illness or incapacity as a result of which Executive is unable to effectively perform the essential functions of Executive’s duties as determined by the Board of the Company in
good faith, for a period of 90 consecutive days or a period of 120 days during any 180-day period. 
 
“Independent Third Party” means any Person who, immediately prior to the contemplated transaction, does not own in excess
of 5% of the Company’s Common Stock on a fully diluted basis (a “5% Owner”), who is not controlling, controlled by or under common control with any such 5% Owner and who is not the spouse or descendent (by birth or adoption) of
any such 5% Owner or a trust for the benefit of such 5% Owner and/or such other Persons. 
 
“Investor Rights Agreement” means that certain Investor Rights Agreement, dated as of April 5, 2000, as amended on August 12, 2002, by and among the Company and the Company’s
stockholders, as such agreement may be amended from time to time in accordance with its terms. 
 
“Option Shares” shall mean (a) all shares of capital stock of the Company issued or issuable upon the exercise of an Option and (b) all shares of capital stock of the Company issued
with respect to the capital stock referred to in clause (a) above by way of a stock dividend or stock split or in connection with any conversion, merger, consolidation or recapitalization or 
 

15 

 
other reorganization affecting
such capital stock. Option Shares shall continue to be Option Shares in the hands of any holder other then Executive (except for the Company and transferees in a Public Sale consummated in accordance with this Agreement and the Investor Rights
Agreement), and each such transferee thereof shall succeed to the rights and obligations of a holder of Option Shares hereunder. 
 
“Original Cost” of any share of Executive Stock means the price paid by Executive for such share of Executive Stock.

 
“Permitted Transferee” means
any permitted transferee of Stock pursuant to a transfer in accordance with Section 2D of the Investor Rights Agreement. 
 
“Person” means an individual or a corporation, partnership, limited liability company, trust, unincorporated
organization, association or other entity. 
 
“Public Sale” means any sale of Stockholder Shares to the public pursuant to an offering registered under the Securities Act or to the public through a broker, dealer or market maker pursuant to the provisions of
Rule 144 adopted under the Securities Act. 
 
“Sale of the Company” means the sale of the Company to an Independent Third Party or group of Independent Third Parties pursuant to which such party or parties acquire (i) ownership or voting rights to capital stock
of the Company possessing the voting power to elect a majority of the Board of the Company (whether by merger, consolidation or sale or transfer of the Company’s capital stock) or (ii) all or substantially all of the assets of the Company
determined on a consolidated basis. 
 
“Securities Act” means the Securities Act of 1933, as amended from time to time. 
 
“Series A Preferred” means the Company’s Series A Preferred Stock, $.01 par value per share. 
 
“Series B Preferred” means the Company’s
Series B Preferred Stock, $.01 par value per share. 
 
“Series C Preferred” means the Company’s Series C Preferred Stock, $.01 par value per share. 
 
“Series D Preferred” means the Company’s Series D Preferred Stock, $.01 par value per share. 
 
“Series E Preferred” means the Company’s
Series E Preferred Stock, $.01 par value per share. 
 
“Stockholder Shares” has the meaning given such term in the Investor Rights Agreement. 
 
“Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, association or
business entity of which (i) if a corporation, a majority of 
 

16 

 
the total voting power of
shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company, partnership, association or other business entity (other than a corporation), a majority of partnership or other similar ownership interest thereof is at
the time owned or controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited
liability company, partnership, association or other business entity (other than a corporation) if such Person or Persons shall be allocated a majority of limited liability company, partnership, association or other business entity gains or losses
or shall be or control any managing director or general partner of such limited liability company, partnership, association or other business entity. For purposes hereof, references to a “Subsidiary” of the Company shall be given effect
only at such times that the Company has one or more Subsidiaries, and, unless otherwise indicated, the term “Subsidiary” refers to a Subsidiary of the Company. 
 
“Termination” means such time as of which Executive ceases to be Employed by the Company,
for any reason, whether on account of termination by Publishing, resignation by Executive, Executive’s death or Incapacity or otherwise. 
 
“Termination Date” means the date on which Termination occurs. 
 
“Transfer” has the meaning given such term in
the Investor Rights Agreement. 
 
“Work
Product” means all inventions, innovations, improvements, developments, methods, processes, designs, analyses, drawings, reports and all similar or related information (whether or not patentable or reduced to practice or comprising
Confidential Information) and any copyrightable work, trade mark, trade secret or other intellectual property rights (whether or not comprising Confidential Information) and any other form of Confidential Information, any of which relate to
Publishing’s or any of its Affiliates’ actual or anticipated business, research and development or existing or future products or services and which were or are conceived, reduced to practice, contributed to, developed, made or acquired by
Executive (whether alone or jointly with others) while employed (both before and after the Effective Date) by Publishing (or its successors or assigns) and its Affiliates. 
 
“WS” has the meaning given such term in the Investor Rights Agreement. 
 
“WS Fund III” means, collectively, Willis
Stein & Partners III, L.P., Willis Stein & Partners Dutch III-A, L.P., Willis Stein & Partners Dutch III-B, L.P. and Willis Stein & Partners III-C, L.P. 
 
17.    Notices.  Any notice provided for in this Agreement must be in
writing and must be either personally delivered, mailed by first class mail (postage prepaid and return receipt requested) or sent by reputable overnight courier service (charges prepaid) to the recipients at the address indicated below:

 

17 

 

	 If to Executive:
	  	 Gregory Barton

	 	  	 255 West 88th Street, Apt. 4A

	 	  	 New York, NY 10024

	 	  	 
	 If to the Company:
	  	 Ziff Davis Holdings, Inc.

	 	  	 28 E. 28th Street

	 	  	 New York, NY 10016

	 	  	 Attention: Chief Operating Officer

	 	  	 
	 with a copy to:
	  	 Ziff Davis Holdings, Inc.

	 	  	 28 E. 28th Street

	 	  	 New York, NY 10016

	 	  	 Attention: Chief Executive Officer

	 	  	 
	 and
	  	 Willis, Stein & Partners Management III, L.L.C.

	 	  	 One North Wacker, Suite 4800

	 	  	 Chicago, IL 60606

	 	  	 Attn: Avy H. Stein

	 	  	           Daniel H. Blumenthal

	 	  	 
	 and
	  	 Kirkland & Ellis

	 	  	 200 East Randolph Drive

	 	  	 Chicago, IL 60601

	 	  	 Attn: John A. Weissenbach

	 	  	           David A. Breach

	 	  	 
	 If to WS:
	  	 Willis, Stein & Partners Management III, L.L.C.

	 	  	 One North Wacker, Suite 4800

	 	  	 Chicago, IL 60606

	 	  	 Attn: Avy H. Stein

	 	  	           Daniel H. Blumenthal

	 	  	 
	 with a copy to
	  	 Kirkland & Ellis

	 	  	 200 East Randolph Drive

	 	  	 Chicago, IL 60601

	 	  	 Attn: John A. Weissenbach

	 	  	           David A. Breach

 
or such other address or
to the attention of such other person as the recipient party shall have specified by prior written notice to the sending party. Any notice under this Agreement shall be deemed to have been given five days after deposit in the U.S. mail, if mailed,
or otherwise when so delivered or sent otherwise. 
 
18.    General Provisions. 
 
(a)    Transfers in Violation of Agreement. Any Transfer or attempted Transfer of any Stock or the Option in violation of any provision of this Agreement shall be void, and the 
 

18 

 
Company shall not record such
Transfer on its books or treat any purported transferee of such Stock or such Option as the owner of such Stock or such Option for any purpose. 
 
(b)    Severability.  Whenever possible, each provision of this Agreement shall be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained
herein. 
 
(c)    Complete
Agreement.  This Agreement, those documents expressly referred to herein and other documents of even date herewith embody the complete agreement and understanding among the parties and supersede and preempt any prior understandings,
agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way. 
 
(d)    Counterparts; Signatures Received via Facsimile.  This Agreement may be executed in separate
counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement. Signatures received via facsimile shall be deemed originals for all purposes. 
 
(e)    Successors and
Assigns.  Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be enforceable by Executive, the Company, Publishing and their respective successors and assigns; provided that the rights
and obligations of Executive under this Agreement shall not be assignable except in connection with a permitted transfer of Stock hereunder. 
 
(f)    Governing Law.  The corporate law of
the State of Delaware will govern all issues concerning the relative rights of the Company and its stockholders. All other issues concerning this Agreement shall be governed by and construed in accordance with the laws of the State of New York
without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the law of any jurisdiction other than the State of New York.

 
(g)    Remedies.  Each of the parties to this Agreement shall be entitled to enforce its rights under this Agreement specifically, to recover damages and costs (including reasonable
attorney’s fees) caused by any breach of any provision of this Agreement and to exercise all other rights existing in its favor. The parties hereto agree and acknowledge that money damages would not be an adequate remedy for any breach of the
provisions of this Agreement and that any party may in its sole discretion apply to any court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific performance and/or other injunctive relief in order to
enforce or prevent any violations of the provisions of this Agreement. 
 
(h)    Survival.  The provisions set forth in Section 4, Section 7 and Sections 12 through 18 shall survive and continue in full force and effect in accordance with
their terms notwithstanding any termination of the Employment Period. 
 

19 

 
(i)    Amendment and Waiver. The provisions of this Agreement may be amended and waived only with the prior written consent of the Company, Publishing, Executive and WS Fund III. 
 
*    *    *    * 
 
 

20 

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

	 ZIFF DAVIS HOLDINGS, INC.

	
	 By:
	 	 /S/    BART W. CATALANE

	 	 	 Its: Chief Operating Officer and CFO

 
 
 
 

	 ZIFF DAVIS PUBLISHING, INC.

	
	 By:
	 	 /S/    BART W. CATALANE

	 	 	 Its: Chief Operating Officer and CFO

 
 
 

	 EXECUTIVE:

	
	 By:
	 	 /S/    GREGORY BARTON

	 	 	                 Gregory
Barton

 
EXHIBIT
A 
 
 
Form of Option Agreement 
 
 
 
[To be attached following approval of Option grant and form of Option
Agreement by Board]

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