Document:

exv10w12

Exhibit 10.12

Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with
the Securities and Exchange Commission. The omissions have been indicated by asterisks (“*****”), and the omitted
text has been filed separately with the Securities and Exchange Commission.

MADISON SQUARE GARDEN, L.P.

TWO PENN PLAZA

NEW YORK, NEW YORK 10121

 ___, 2009

CSC Holdings, Inc.

1111 Stewart Avenue

Bethpage, New York 11714

Ladies and Gentlemen:

     This will confirm the agreement (the “Agreement”) by and between CSC Holdings, Inc.
(“Affiliate”) and Madison Square Garden, L.P. (“Network”) for the carriage of the Services (as
defined below) by certain cable television systems at least majority owned, controlled and managed
by Affiliate and/or any entity controlling, controlled by or under common control with Affiliate.

     1. SYSTEMS: The Agreement will apply (i) to each of the “cable systems” as defined in
applicable federal communications law, which are in each case set forth on Schedule A and
at least majority owned, controlled and managed by Affiliate (each, a “System”) and (ii) in the
local service areas set forth in Schedule A (each, a “Service Area”). Affiliate represents and
warrants that (a) Affiliate is duly authorized by all federal, state and local government
authorities and agencies as are necessary or appropriate to conduct its business and operate the
Systems and shall continue to be so authorized throughout the License Period (as hereinafter
defined), (b) each System has obtained, and shall maintain in full force during the License Period,
such federal, state and local authorizations as are necessary or appropriate to operate such
System, (c) each System is in compliance with, and will comply with, all applicable laws,
including, without limitation, any statute, rule, regulation, order or decree of any governmental
body, and (d) as clarification, Affiliate will not transmit, or permit the transmission of, the
Services over the Internet (including, without limitation, the World Wide Web). Without limiting
the foregoing, Affiliate shall have obtained for each System for each Service Area, before
commencing distribution of the Services over such System in such Service Area (or earlier as
required under applicable law), a valid cable franchise (specifically identifying and authorizing
each such Service Area, to the extent required under applicable law) from the appropriate
governmental franchising authority (which may include a local municipality or a state or federal
franchising authority) for the construction and operation of a cable system throughout such
System’s Service Area. Solely for purposes of the immediately preceding sentence, a certificate of
authority

 

 

obtained by Affiliate pursuant to the Conn. Pub. Act No. 07-253 shall be deemed a valid cable
franchise. *****

     2. LICENSE PERIOD: Each System will be licensed to receive the Services and shall
distribute the Services to Subscribers of such System in accordance with this Agreement at all
times during the period beginning as of January 1, 2010 and
ending on December 31, 2019 (the “License Period”).
Affiliate shall cause each System to carry the Services throughout the License Period pursuant to
the terms and conditions of this Agreement.

     3. DEFINITIONS: The following terms will have the following meanings when used in
this Agreement:

          (a) “Service” shall mean each of the twenty-four hours per day, seven days per week
satellite-delivered standard-definition programming services currently known as “MSG Plus” and “MSG
Network”, as the case may be (such services are hereinafter collectively referred to as the
“Services”).

          (b) “Service Subscriber” shall mean each Subscriber who is authorized to receive the Services
from a System. *****

          (c) “Subscriber” shall mean each residence (including, without limitation, each individual
dwelling in each multiple dwelling, whether an apartment building, cooperative or condominium),
each commercial or business establishment and each hotel, motel or other establishment providing
temporary residence (e.g. hospitals, nursing homes) that subscribes to any television service from
any System.

     4. CARRIAGE:

          (a) Affiliate will cause each System to provide the Services throughout the License Period as
part of such System’s *****.

          (b) Affiliate will exhibit the Services in each System in its entirety when and as delivered
by Network (including, without limitation, any openings, closings, interstitial programming,
advertisements or sponsorships). *****

          (c) (i) Affiliate shall take all actions under its control to employ, maintain and upgrade
such reasonable security systems and procedures (including maintenance of access control systems)
consistent with customary cable television industry practice and as are necessary to effectively
protect the programming contained on each Service and all materials related thereto from theft,
pirating, unauthorized receipt or access, redistribution, unauthorized copying or duplication,
including without limitation by fully encrypting the signal of each Service utilizing encryption
technology commonly used in the domestic cable television industry. Without limiting the
foregoing, Affiliate will take all reasonable action under its control and consistent

2

 

with customary industry practice to protect the transmission, distribution and/or exhibition
of all or any part of the programming contained on each Service through any digital outputs or any
outputs of enhanced resolution analog signal on any set-top box that has digital outputs (e.g. any
analog signal of image quality higher than 345,600 pixels per frame) by an effective content
control/copy management system that prohibits the unauthorized transmission, distribution,
exhibition, copying, recording, redistribution and/or transcription of all of any part of the
program contained on the Service (a “Copy Protection System”) for that particular output. With
regard to any Copy Protection System, Affiliate shall take the steps required by that system (if
any) to protect the programming contained on each Service in accordance with the Network’s
reasonable instructions and consistent with customary cable television industry practice.

               (ii) Affiliate shall not, and shall not authorize any other person to, copy, tape, or
otherwise reproduce any part of either Service without Network’s prior written authorization.
Neither Affiliate nor any person distributing the Services in accordance herewith shall be
responsible or liable for the recording of all or any part of the Services by Service Subscribers
for their private, non-commercial use. In addition, nothing in this Paragraph 4(c) shall be deemed
to prohibit the recording by Affiliate’s Subscribers for their private, non-commercial use, or to
prevent Affiliate from hooking up, installing or providing its Subscribers’ videocassette recorders
or other similar recording devices and/or technologies, including but not limited to digital video
recorders.

               (iii) Network and Affiliate shall cooperate in good faith with respect to any material or
information embedded by Network that is designed to prevent unauthorized copying or distribution of
the programming contained on either Service.

          (d) Network and Affiliate acknowledge that there is potentially excess signal distribution
capacity contained within the vertical blanking interval (“VBI”) of each Service’s signal as
received at each System. Without the prior written consent of Affiliate, Network shall not use any
portion of this potentially excess VBI signal distribution bandwidth, except that Network may use
the VBI for stereo, a second audio feed, closed captioning, V-chip program ratings information, any
other data or information that the Federal Communications Commission (“FCC”) or other applicable
federal, state or local law or regulation requires Network or Affiliate to transmit as part of a
Service at any time within the bandwidth of the signal of a Service, or Affiliate test signals.
Affiliate’s Systems may exercise and exploit any distribution capacity contained within the
bandwidth of the signal (including the VBI) by any means and in any locations in its discretion,
provided however, such use by Affiliate or any System shall be a discrete use, separate and apart
from the Services, and shall not (i) degrade (other than in an immaterial respect) the technical
quality of the video and accompanying audio signal for the programming on either Service or (ii)
adversely

3

 

disrupt or degrade (other than in an immaterial respect) the viewing experience of either
Service.

          (e) The Services will be sold, marketed, promoted and identified by Affiliate solely as “MSG
Plus” (or “MSG+”) and “MSG Network”, as the case may be, and under no other name unless otherwise
designated in writing by Network.

          (f) Network shall, at its own expense, deliver a signal of each Service, of a technical
quality at least comparable to that delivered by other cable television programming services to
Affiliate, by transmitting such signal by means of a domestic video communications satellite (or
such other method as is mutually agreed by the parties) and shall, at its own expense, fully encode
the satellite signal of each Service, and shall authorize all System descramblers and other
reception facilities and equipment furnished by Affiliate necessary to receive and descramble the
satellite transmission of each Service signal and to deliver such signal to Service Subscribers.
Except as otherwise provided herein (including pursuant to sub-sections (g) and (h) below), as
between Affiliate and Network, Affiliate shall, at its sole expense, furnish an earth station and
all other facilities and services necessary for the receipt of such satellite transmission and the
delivery of such signal to the Service Subscribers. Network hereby grants Affiliate the right to
receive the feed of each Service, to digitize, compress, modify or otherwise technologically
manipulate the feed (including the creation of a dual digital feed in addition to any analog feed
of each Service), and to transmit the feed(s) as so altered and which shall be encrypted by
Affiliate (the “Altered Feeds”) for distribution to terrestrial reception sites capable of
receiving and utilizing the Altered Feeds and delivering such Altered Feeds to the System(s);
provided that no such alteration, transmission, redistribution, reception or other use will
cause any perceptible change in an average viewer’s perception of the principal video or principal
audio presentation of the Services using commercially available consumer electronics equipment.

          (g) In the event Network elects to change the satellite used for delivery of the Services,
Network shall provide Affiliate with at least ninety (90) days prior written notice of such change.
If as a result of such change Affiliate would have to incur incremental out-of-pocket expenses
in order to receive and distribute the Services, then Affiliate may as its sole recourse
discontinue distribution of the Services in any affected System as of the date of such change
unless Network agrees promptly to reimburse such System for such System’s incremental expenses to
acquire and install equipment necessary for such System to receive the signal of the Services from
such new satellite. Such reimbursement shall be for the Services’ pro rata share of such expenses,
with the Services to share expenses equally with any other programming services that are
participating in such change and are carried by such System.

          (h) In the event Network changes its encryption technology, Network shall use reasonable
efforts to provide Affiliate with at least ninety (90) days prior

4

 

written notice of such change. If the new encryption technology is not compatible with a
System’s then-existing descrambling equipment, then Affiliate may as its sole recourse discontinue
distribution of the Services in any affected System as of the date of such change unless Network
agrees promptly to reimburse such System for such System’s incremental out-of-pocket costs and
expenses to acquire and install the equipment necessary for such System to descramble the signal of
the Services subsequent to such change. Such reimbursement shall be for the Services’ pro rata
share of such expenses, with the Services to share expenses equally with any other programming
services that also use the new encryption technology and are carried by such System.

          (i) Network shall provide Affiliate with an average of at least ***** of commercial
announcement time per hour of programming in which national advertising spots are inserted,
allocated on a reasonably even basis among the advertising spots inserted by Network. Such
commercial announcement time shall be scheduled by Network, at Network’s sole discretion with
reasonable advance written notice to Affiliate, and shall be used, at Affiliate’s option, for
insertion of national or local advertising and announcements. As between Network and Affiliate,
Affiliate shall have the right to retain for itself all of the proceeds derived from the sale of
the commercial announcement time furnished to Affiliate hereunder.
***** Each use by Affiliate of the advertising
time made available hereunder shall comply with Network’s standard policies and restrictions
applicable to all Service distributors (as noticed to Affiliate in writing) and to Network.

     5. PAYMENT:

          (a) Affiliate will pay Network monthly, within forty-five (45) days after the end of each
calendar month during the License Period:

               (i) for each residence that is a Service Subscriber, *****; and

               (ii) subject to (b)(ii) below, for each commercial or business establishment that is a Service
Subscriber (each, a “Commercial Subscriber”), *****.

          (b) (i) Subject to (b)(ii) below, Affiliate shall pay the applicable rate set forth in
Paragraph 5(a)(i) for each room susceptible of overnight occupancy (each, a “Unit”) in each hotel,
motel or other establishment providing temporary residence that is a Service Subscriber.

               (ii) Notwithstanding anything set forth herein to the contrary, for any multiple dwelling,
hotel, motel or other establishment providing temporary residence and/or commercial establishment
for which any System charges a monthly

5

 

bulk rate rather than a per household or per Unit rate for the tier of television services
that includes the Services (each, a “Bulk Account”), the applicable monthly rate, pursuant to
Paragraph 5(a) above payable with respect to each Unit (or individual household with respect to a
Bulk Account that is a multiple dwelling) of such Bulk Account, shall be discounted in a manner
consistent with past practice.

          (c) Affiliate shall provide to Network all information necessary for Network to verify the
accuracy of each payment hereunder, including without limitation the number, both across Systems
and for each System, of Subscribers, Broadcast Basic Subscribers and Service Subscribers, and the
applicable monthly rate, and such other information as Network may from time to time reasonably
request. For all purposes of this Agreement, all Subscriber numbers for any calendar month shall
be based upon the sum of the number of Subscribers as of the first day of such calendar month plus
the number of Subscribers as of the last day of such calendar month, divided by two. *****

          (d) Network shall have reasonable and customary audit rights, and shall be permitted to audit
the books and records of Affiliate relating to the performance of Affiliate’s obligations hereunder
no more than once per calendar year during normal business hours, on at least thirty (30) days
advance notice. Any audit shall be undertaken by an independent third party, which shall be a
nationally recognized cable auditing firm, provided that such independent third party agrees to be
bound by the confidentiality provisions substantially similar to those contained in Section 8(b)
below. Audits shall be limited to books and records of the then current year and the two
immediately preceding calendar years. If Network audits Affiliate’s books and records hereunder,
Network must make any claim against Affiliate alleging any underpayment of fees under this
Agreement with respect to the audited period within six (6) months after Network receives the
applicable audit report; if the claim is not made within such time period, Network shall be deemed
to have waived its right to collect any shortfall amounts determined by such audit to be due and
owing from Affiliate for the period(s) audited. Affiliate shall, at Network’s option, reimburse
Network for all reasonable, third party costs and expenses of any such audit which reveals an
underpayment by Affiliate that is not the subject of a bona fide dispute for the period audited of
more than ***** of the amount properly payable by Affiliate to Network hereunder for such period.

          (e) Any amount not paid by Affiliate hereunder when due shall, at Network’s option, accrue
interest from the due date at the lesser of (i) one and one-half percent (11/2%) per month (ii) the
maximum rate permitted by law.

          (f) *****

          (g) (i) *****

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               (ii) *****

     6. MARKETING:

          (a) Commencing promptly after the effective date hereof, Affiliate shall promote, market and
sell the Services and its services as a distributor of television programming services within the
Service Area(s). In connection therewith, Affiliate shall promote and market the Services in a
similar manner as other program services that are included in the tier of television service of
which the Services are a part, taking into account any additional consideration Affiliate receives
from the owners of such other programming services specifically for the promotion and marketing
thereof.

          (b) *****

     7. *****

     8. REPRESENTATIONS AND WARRANTIES/INDEMNIFICATIONS:

          (a) Mutual Representations, Warranties and Covenants. Each of the parties represents,
warrants and covenants to the other that: (i) it has the right and will continue to have the right
during the License Period, to enter into and perform fully its respective obligations under this
Agreement; (ii) it has not and will not during the License Period enter into an agreement or
arrangement which limits the full performance of its obligations hereunder; and (iii) it is and
will remain in full compliance with all applicable Federal, state and local laws and regulations
applicable to the subject matter of this Agreement. Each of Affiliate and Network agrees to
provide statements, records and other documents reasonably necessary to the other party to
demonstrate its compliance with applicable FCC closed captioning requirements and Children’s
Television Regulations as and when reasonably requested in writing.

          (b) Network Additional Representations, Warranties and Covenants. Network represents,
warrants and covenants that (i) the programming contained in the Services, and the advertising and
promotional materials provided by Network to Affiliate and the logos and marks associated with the
Services, will not be defamatory and will not contain any material which violates any copyright,
trademark, right of privacy, right of publicity or literary or dramatic right of any person or
entity; (ii) it will be fully responsible for obtaining, maintaining during the Term, and fully
complying with a through-to-the-viewer music performance license with respect to all music
contained in the Services that is sufficient to permit Affiliate’s distribution of the Services as
permitted hereunder; and (iii) each Service complies, and will continue to comply, in all material
respects with (A) the commercial matter limitations of the Children’s Television Act of 1990,
Public Law 101-437 (October 18, 1990) and the

7

 

regulations of the FCC promulgated thereunder, as the same may be amended from time to time
(“Children’s Television Regulations”), (B) all applicable cablecasting origination regulations of
the FCC, including, but not limited to, political equal time, personal attack, lotteries and
sponsorship identification, as the same may be amended from time to time (“Origination
Requirements”), and (C) all FCC closed captioning requirements pursuant to all applicable laws and
regulations.

          (c) Indemnification. The parties shall indemnify and hold each other, their respective parent
and affiliated entities and the officers, directors and employees of all of the foregoing harmless
from and against any and all claims, damages, liabilities, costs and expenses (including reasonable
attorneys’ fees and related costs) (“Claims”) arising out of the breach or alleged breach of any
representation, warranty or undertaking made by the indemnifying party. Network shall further
indemnify and hold Affiliate harmless from and against any and all Claims arising out of (i) the
content of its Services, including but not limited to the extent that such Claims are based upon
libel, slander, defamation, invasion of the right of privacy, or violation or infringement of
copyright (including use of marks) arising out of the content of such Services or based on
violations by such Services of literary or dramatic rights; (ii) Network’s advertising and
marketing of the Services, or (iii) any other materials, including advertising or promotional copy,
supplied or permitted in writing by Network; provided that Network shall not be responsible for any
Claims which arise out of or relate to any marketing materials relating to a Service prepared by
Affiliate without Network’s prior written consent or to Affiliate’s use of any commercial or
promotional announcement time on a Service made available to Affiliate pursuant to this Agreement,
as to which Claims Affiliate shall indemnify and hold Network and its related parties harmless.

     9. MISCELLANEOUS:

          (a) Affiliate acknowledges that Network’s service marks, trademarks, trade names and logos
(“Network Marks”) are Network’s exclusive property and that Affiliate will not acquire any
proprietary rights in the Network Marks by reason of this Agreement. Affiliate shall not use any
Network Mark in a manner that constitutes an endorsement and shall use the Network Marks only to
refer to a Service and in the form supplied or approved by Network. Affiliate shall not use any
programming or related trade or service marks without the prior written consent of Network.

          (b) Affiliate and Network shall each keep secret and retain in the strictest confidence and
shall not disclose to any third party any of the terms of this Agreement, as well as any
confidential information shared in the course of performance hereunder (including, without
limitation, Affiliate’s subscriber reports) (collectively, “Confidential Information”) except as
required by law, and Network may disclose the terms of this Agreement to any prospective purchaser
of a direct or indirect interest in Network or the assets of Network. Notwithstanding the
foregoing, neither party shall

8

 

be obligated to treat as confidential any information, including the terms of this Agreement,
disclosed by the other party (the “Disclosing Party”) which: (1) is rightfully known to the
recipient (the “Receiving Party”) prior to its disclosure by the Disclosing Party; (2) is
independently developed by the Receiving Party without any reliance on confidential or proprietary
information of the Disclosing Party, including without limitation the terms of this Agreement; or
(3) is or later becomes publicly available without violation of this Agreement or may be lawfully
obtained by the Receiving Party from any nonparty. Furthermore, disclosure may be made if required
by court order or a government agency, in which case any Confidential Information disclosed shall
be marked “confidential”; and the Disclosing Party shall use its best reasonable efforts to ensure
that the Confidential Information is covered by a protective order or otherwise receives
confidential treatment, and the Disclosing Party shall promptly notify the other of its intent to
disclose such Confidential Information prior to such disclosure.

          (c) This Agreement may not be amended nor any provision waived except in writing signed by the
parties hereto. This Agreement contains the full understanding of the parties with respect to the
subject matter hereof and supersedes any and all previous agreements between the parties. Each
party acknowledges that it is entering into this Agreement in reliance only upon the provisions
herein set forth, and not upon any representation, warranty, covenant, agreement, obligation or
other consideration not set forth herein.

          (d) This Agreement is subject to and limited by Network’s agreements with, and the rules,
regulations and agreements of, any league, association, individual athletic team or other program
supplier, as such agreements, rules or regulations may from time to time be amended, modified,
supplemented, entered into, interpreted, enacted, performed or enforced. This Agreement shall
expire if delivery of a Service by Network is permanently discontinued.  

          (e) Neither Network nor Affiliate shall have any liability to the other with respect to any
failure to perform any of its obligations hereunder if such failure is due to an act of God or
other cause (financial inability excepted) beyond such party’s reasonable control (a “Force Majeure
Event”). In addition, in the event of a failure by Network to furnish the Services signal due to
an event other than a Force Majeure Event, Affiliate’s obligation to make payment under this
Agreement for such System shall be reduced by the same percentage, if any, by which Affiliate’s
total billings for the Services in such System are reduced for the applicable month during which
any such failure occurred and by reason of such failure.

          (f) Any recourse of Affiliate against Network shall extend only to Network and not to any of
Network’s partners or members.

          (g) Facsimile signatures shall be deemed original for all purposes. This Agreement may be
executed in counterparts all of which when taken together shall be

9

 

deemed to constitute one and the same instrument.

          (h) The submission of this Agreement to Affiliate or its agent or attorney for review or
signature does not constitute an offer to Affiliate. This Agreement shall have no binding force or
effect until its execution by both parties hereto.

          (i) THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS MADE AND WHOLLY PERFORMED THEREIN WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

If you are in agreement with the foregoing, please sign this letter in the space indicated below.

	 	 	 	 	 
	 	 	Sincerely,
	 
	 	 	 	 
	 	 	MADISON SQUARE GARDEN, L.P.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 	 	Date signed:

ACCEPTED AND AGREED:

CSC HOLDINGS, INC.

	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 
	Date signed:	 	 

10

 

SCHEDULE A

SYSTEM(S)

	 	 	 
	 	 	GEOGRAPHIC BOUNDARIES OF
	NAME(S) OF SYSTEM(S)	 	SERVICE AREA(S)
	VTV Long Island – Hauppauge, NY

Brookhaven, NY

Riverhead, NY

East Hampton, NY

Lynbrook, NY

Long Island, NY

Westchester - Yonkers, NY

Cross River, NY

Dutchess/Dover Plains, NY

Port Chester, NY

Yorktown Heights, NY

So. Westchester, NY

Norwalk, CT

Bridgeport, CT

Litchfield, CT

New York City, NY

Wappinger Falls, NY

Wappinger Falls (Dutchess), NY

Ossining, NY

Oakland, NJ

Paterson, NJ

Warwick, NY/NJ

Rockland, NY/NJ

Ramapo, NY/NJ

Port Jervis, NY/NJ/PA

Bergen, NJ

Bayonne, NJ

Newark, NJ

Hudson County, NJ

Elizabeth, NJ

Morris, NJ

Allamuchy, NJ

Monmouth – Freehold, Wall, Ocean, Asbury, Millstone, Jackson, Seaside, Lakewood, NJ

Hamilton, NJ

Raritan Valley -Tri-System, NJ

	 	The geographic areas currently
served by such
Systems1  

 

1     Upon request of Network, Affiliate will confirm such areas in writing to Network

 

 

SCHEDULE B

 

*****exv10w13

OPTION AGREEMENT

Exhibit 10.13

Dear        
       
      :

          Pursuant to the applicable Cablevision Systems Corporation Employee Stock Plan, on                      (the
“Grant Date”), you were granted options to purchase shares of Cablevision Systems
Corporation (“Cablevision”). In conjunction with the spin-off of Madison Square Garden,
Inc. (the “Company”) from Cablevision on          
            (the “Distribution Date”), and
pursuant to the Company’s 2010 Employee Stock Plan (the “Plan”), you are receiving the
award described in this Option Agreement (the “Agreement”) of nonqualified stock options
(the “Options”) to purchase        
              shares of Madison Square Garden, Inc. Class A common
stock (the “Class A Common Stock”) at a price
of $                     per share.

          Capitalized terms used but not defined in this Agreement have the meanings given to them in
the Plan. The Options are granted subject to the terms and conditions set forth below:

          1. Vesting. The Options are immediately exercisable.

          2. Exercise. You may exercise the Options by giving written notice to the Secretary of the
Company, or by following such procedures as established by the Company, specifying the number of
shares of Class A Common Stock as to which the Options are being exercised (the “Exercise
Notice”), together with a copy of this Agreement. Unless the Company chooses to settle such
exercise in cash, shares of Class A Common Stock, or a combination thereof pursuant to Paragraph 3,
you will be required to deliver to the Company, or such person as the Company may designate, within
such time period as the Company may require, payment in full of the exercise price due on account
of such exercise. You may pay the exercise price by cash, by certified check, by surrendering
shares of Class A Common Stock or by any combination thereof. Class A Common Stock used to pay the
exercise price pursuant to this Paragraph 2 will be valued at the Fair Market Value as of the day
preceding the date of exercise.

          3. Option Spread. Upon receipt of the Exercise Notice, the Company may elect, in lieu of
issuing shares of Class A Common Stock, to settle the exercise covered by such notice by paying you
an amount equal to the product obtained by multiplying (i) the excess of the Fair Market Value of
one (1) share of Class A Common Stock on the date of exercise over the per share exercise price of
the Options (the “Option Spread”) by (ii) the number of shares of Class A Common Stock
specified in the Exercise Notice. The amount payable to you in these circumstances may be paid by
the Company either in cash or in shares of Class A Common Stock having a Fair Market Value equal to
the Option Spread, or a combination thereof, as the Company shall determine. Class A Common Stock
used to pay the Option Spread pursuant to this Paragraph 3 will be valued at the Fair Market Value
as of the day the Exercise Notice is received by the Company.

          4.
Expiration. The Options will terminate automatically and without
further notice on
                            , or at any of the following dates, if
earlier:

 

 

	 	(A)	 	one hundred and eighty (180) days following the date upon which
you are no longer employed by either the MSG Group or the Cablevision Group
(each as defined below), unless you cease to be an employee by reason of (x)
death, Disability (as defined below) or Retirement (as defined below) with your
Employer’s consent or (y) termination from your Employer for Cause (as defined
below); provided, that for purposes of this Section 4(A), you shall be
deemed to cease to be an employee of the MSG Group or the Cablevision Group if
you transfer between the MSG Group and the Cablevision Group at a time when the
Company and Cablevision are not considered Affiliates;
	 
	 	(B)	 	three (3) years following the date upon which you are no longer
employed by either the MSG Group or the Cablevision Group, if such cessation is
the result of death, Disability or Retirement; or
	 
	 	(C)	 	the date upon which your employment with your Employer is
terminated for Cause.

          Notwithstanding the first sentence of this Paragraph 4, in the event of your death during the
period that your Options are exercisable, whether death occurs before or after you cease
employment, the Options that are exercisable at the time of your death shall remain exercisable by
your estate or beneficiary until the earlier of the third (3rd)
anniversary of your death and
               .

          For purposes of this Agreement, the “Cablevision Group” means Cablevision Systems
Corporation and any of its subsidiaries and Affiliates, other than Madison Square Garden, Inc. and
its subsidiaries. The “MSG Group” means Madison Square Garden, Inc. and any of its
subsidiaries and Affiliates, other than Cablevision Systems Corporation and its subsidiaries.

          For purposes of this Agreement, “Cause” means, as determined by the compensation
committee of your Employer, your (i) commission of an act of fraud, embezzlement, misappropriation,
willful misconduct, gross negligence or breach of fiduciary duty against your Employer or any of
its Affiliates, or (ii) commission of any act or omission that results in a conviction, plea of no
contest, plea of nolo contendere, or imposition of unadjudicated probation for any crime involving
moral turpitude or any felony.

          For purposes of this Agreement, “Disability” means your inability to perform for six
(6) continuous months substantially all the essential duties of your occupation, as determined by
the compensation committee of your Employer.

          For purposes of this Agreement, if you are employed by the Cablevision Group, your
“Employer” means Cablevision Systems Corporation; if you are employed by the MSG Group,
your “Employer” means Madison Square Garden, Inc.; and if you are employed by both the
Cablevision Group and the MSG Group, your “Employer” shall mean Cablevision Systems
Corporation.

-2-

 

          For purposes of this Agreement, “Retirement” means the voluntary termination by you of
your employment with your Employer at such time as (i) you have attained at least the age of
fifty-five (55) and (ii) you have been employed by the MSG Group or the Cablevision Group for at
least five (5) years in the aggregate, provided that your Employer, may nevertheless
decide, in its sole discretion, not to treat your termination of employment as a “Retirement”
hereunder. Treatment of your termination of employment as a “Retirement” hereunder shall be
further subject to your execution (and the effectiveness) of a retirement agreement to your
Employer’s satisfaction, including, without limitation (to the extent desired by your Employer),
non-compete, non-disparagement, non-solicitation, confidentiality and further cooperation
obligations/restrictions on you as well as a general release by you of your Employer. The above
definition of “Retirement” is solely for purposes of this Agreement and shall not, in any way,
create or imply any obligations of the MSG Group or the Cablevision Group (under any other
agreement or otherwise) with respect to any such termination of your employment.

          5. Change of Control/Going Private Transaction. As set forth in Appendix 1 attached
hereto, the Options may be affected in the event of a Change of Control or a going private
transaction (each as defined in Appendix 1 attached hereto).

          6. Tax Representations and Tax Withholding. You hereby acknowledge that you have reviewed
with your own tax advisors the federal, state and local tax consequences of exercising the Options
and receiving shares of Class A Common Stock and cash. You hereby represent to the MSG Group and
the Cablevision Group that you are relying solely on such advisors and not on any statements or
representations of the Company, Cablevision or any of their respective Affiliates or agents.

          If, in connection with the exercise of the Options, your Employer is required to withhold any
amounts by reason of any federal, state or local tax, such withholding shall be effected in
accordance with Section 16 of the Plan.

          7. Section 409A. It is the intent that payments under this Agreement are exempt from Section
409A of the Internal Revenue Code of 1986, as amended (the “Code”), and that the Agreement
be administered and interpreted accordingly. To the extent necessary to give effect to this
intent, in the case of any conflict or potential inconsistency between the provisions of the Plan
and this Section 7 of the Agreement, the provisions of Section 7 of this Agreement shall govern.
Notwithstanding anything to the contrary contained in this Agreement, if and to the extent that any
payment or benefit under this Agreement is determined by your Employer to constitute “non-qualified
deferred compensation” subject to Section 409A of the Code (“Section 409A”) and is payable
to you by reason of your termination of employment, then (a) such payment or benefit shall be made
or provided to you only upon a “separation from service” as defined for purposes of Section 409A
under applicable regulations and (b) if you are a “specified employee” (within the meaning of
Section 409A and as determined by your Employer), such payment or benefit shall not be made or
provided before the date that is six months after the date of your separation from service (or your
earlier death). Any amount not paid in respect of the six month period specified in the preceding
sentence will be paid to you in a lump sum after the expiration of such six month period. Any such
payment or benefit shall be treated as a separate payment for purposes of Section 409A to the
extent Section 409A applies to such payments.

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          8. Transfer Restrictions. You may not transfer, assign, pledge or otherwise encumber the
Options, other than to the extent provided in the Plan.

          9. Non-Qualification as ISO. The Options are not intended to qualify as “incentive stock
options” within the meaning of Section 422A of the Code.

          10. Securities Law Acknowledgments. You hereby acknowledge and confirm to the MSG Group and
the Cablevision Group that (i) you are aware that the shares of Class A Common Stock are
publicly-traded securities and (ii) the shares of Class A Common Stock issuable upon exercise of
the Options may not be sold or otherwise transferred unless such sale or transfer is registered
under the Securities Act of 1933, as amended, and the securities laws of any applicable state or
other jurisdiction, or is exempt from such registration.

          11. Governing Law. This Agreement shall be deemed to be made under, and in all respects shall
be interpreted, construed and governed by and in accordance with, the laws of the State of New
York.

          12. Jurisdiction and Venue. You hereby irrevocably submit to the jurisdiction of the courts
of the State of New York and the Federal courts of the United States of America located in the
Southern District and Eastern District of the State of New York in respect of the interpretation
and enforcement of the provisions of this Agreement, and hereby waive, and agree not to assert, as
a defense that you are not subject thereto or that the venue thereof may not be appropriate. You
hereby agree that mailing of process or other papers in connection with any such action or
proceeding in any manner as may be permitted by law shall be valid and sufficient service thereof.

          13. Right of Offset. You hereby agree that the Company shall have the right to offset against
its obligation to deliver shares of Class A Common Stock, cash or other property under this
Agreement to the extent that it does not constitute “non-qualified deferred compensation” pursuant
to Section 409A, any outstanding amounts of whatever nature that you then owe to the Company or a
subsidiary of the Company.

          14. The Committee. For purposes of this Agreement, the term “Committee” means the
Compensation Committee of the Board of Directors of the Company or any replacement committee
established under, and as more fully defined in, the Plan.

          15. Committee Discretion. The Committee has full discretion with respect to any actions to be
taken or determinations to be made in connection with this Agreement, and its determinations shall
be final, binding and conclusive.

          16. Amendment. The Committee reserves the right at any time to amend the terms and conditions
set forth in this Agreement, except that the Committee shall not make any amendment or revision in
a manner unfavorable to you (other than if immaterial), without your consent. No consent shall be
required for amendments made pursuant to Section 12 of the Plan, except that, for purposes of
Section 19 of the Plan, Section 5 and Appendix 1 of this Agreement are deemed to be “terms of an
Award Agreement expressly referring to an Adjustment Event.” Any amendment of this Agreement shall
be in writing and signed by an authorized member of the Committee or a person or persons designated
by the Committee.

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          17. Options Subject to the Plan. The Options granted by this Agreement are subject to the
Plan.

          18. Entire Agreement. Except for any employment agreement between you and the MSG Group or
the Cablevision Group in effect as of the Distribution Date (as such employment agreement may be
modified, renewed or replaced, provided that such modification, renewal or replacement shall not
extend the time any Options may be exercised or accelerate the vesting of any Options beyond the
time provided herein or in such original employment agreement), this Agreement and the Plan
constitute the entire understanding and agreement of you and the Company with respect to the
Options covered hereby and supersede all prior understandings and agreements. Except as provided
in this Agreement, in the event of a conflict among the documents with respect to the terms and
conditions of the Options covered hereby, the documents will be accorded the following order of
authority: the terms and conditions of the Plan will have highest authority followed by the terms
and conditions of your employment agreement, if any, followed by the terms and conditions of this
Agreement.

          19. Successors and Assigns. The terms and conditions of this Agreement shall be binding upon,
and shall inure to the benefit of, the Company and its successors and assigns.

          20. Waiver. No waiver by the Company at any time of any breach by you of, or compliance with,
any term or condition of this Agreement or the Plan to be performed by you shall be deemed a waiver
of the same, any similar or any dissimilar term or condition at the same or at any prior or
subsequent time.

          21. Severability. The terms or conditions of this Agreement shall be deemed severable and the
invalidity or unenforceability of any term or condition hereof shall not affect the validity or
enforceability of the other terms and conditions set forth herein.

          22. Exclusion from Compensation Calculation. By acceptance of this Agreement, you shall be
considered in agreement that all shares of Class A Common Stock and cash received upon each
exercise of the Options shall be considered special incentive compensation and will be exempt from
inclusion as “wages” or “salary” in pension, retirement, life insurance and other employee benefits
arrangements of your Employer, except as determined otherwise by your Employer. In addition, each
of your beneficiaries shall be deemed to be in agreement that all such shares of Class A Common
Stock and cash be exempt from inclusion in “wages” or “salary” for purposes of calculating benefits
of any life insurance coverage sponsored by your Employer.

          23. No Right to Continued Employment. Nothing contained in this Agreement or the Plan shall
be construed to confer on you any right to continue in the employ of the MSG Group or the
Cablevision Group, as applicable, or derogate from the right of the MSG Group or the Cablevision
Group, as applicable, to retire, request the resignation of, or discharge you, at any time, with or
without cause.

          24. Headings. The headings in this Agreement are for purposes of convenience only and are not
intended to define or limit the construction of the terms and conditions of this Agreement.

-5-

 

          25. Effective Date. Upon execution by you, this Agreement shall be effective from and as of
the Distribution Date.

          26. Signatures. Execution of this Agreement by the Company may be in the form of an
electronic or similar signature and such signature shall be treated as an original signature for
all purposes.

	 	 	 	 	 
	 	MADISON SQUARE GARDEN, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

          By your electronic signature, you (i) acknowledge that a complete copy of the Plan and an executed
original of this Agreement have been made available to you and (ii) agree to all of the terms and
conditions set forth in the Plan and this Agreement.

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APPENDIX 1

TO

STOCK OPTION AWARD AGREEMENT

     1. In the event of a “Change of Control” or a “going private transaction” with
respect to the Company, as defined below, your entitlement to exercise the Options shall be as
follows:

          a. If the Company or the “Surviving Entity,” as defined below, has shares of common
stock (or partnership units) traded on a national stock exchange or on the over-the-counter market
as reported on NASDAQ, the Committee shall, to the extent that the Options have not been exercised
and have not expired (the “Outstanding Options”), no later than the effective date of the
transaction which results in a Change of Control or going private transaction with respect to the
Company either (A) convert your rights in the Outstanding Options into a right to receive an amount
of cash equal to (i) the number of common shares subject or relating to the Outstanding Options
multiplied by (ii) the excess of (x) the “offer price per share,” the “acquisition
price per share” or the “merger price per share,” each as defined below, whichever of
such amounts is applicable, over (y) the exercise price of the shares subject or relating to the
Outstanding Options, or (B) arrange to have the Surviving Entity grant to you in substitution for
your Outstanding Options an award of options for shares of common stock (or partnership units) of
the Surviving Entity on the same terms with a value equivalent to the Outstanding Options and which
will, in the good faith determination of the Committee, provide you with an equivalent profit
potential.

          b. If the Company or the Surviving Entity does not have shares of common stock (or partnership
units) traded on a national stock exchange or on the over-the-counter market as reported on NASDAQ,
the Committee shall convert your rights in the Outstanding Options into a right to receive an
amount of cash equal to the amount calculated as per Section 1(A) above.

          c. The cash award provided in Section 1(a) or 1(b) shall become payable to you, and the
substitute options of the Surviving Entity provided in Section 1(a) will become exercisable (1)
with respect to the Outstanding Options that were not exercisable on the effective date of the
Change of Control or going private transaction with respect to the Company, as the case may be, at
the earlier of (a) the date on which the Outstanding Options would otherwise have become
exercisable hereunder had they continued in effect, or (b) if immediately prior to termination you
were a MSG Employee, the date on which (i) your employment with the MSG Group or the Surviving
Entity is terminated by the MSG Group or the Surviving Entity other than for Cause, if such
termination occurs within three (3) years of the Change of Control or going private transaction
with respect to the Company, (ii) your employment with the MSG Group or the Surviving Entity is
terminated by you for “good reason,” as defined below, if such termination occurs within three (3)
years of the Change of Control or going private transaction with respect to the Company or (iii)
your employment with the MSG Group or one of its subsidiaries or the Surviving Entity is terminated
by you for any reason at least six (6) months, but not more than

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nine (9) months after the effective date of the Change of Control or going private transaction
with respect to the Company; provided that clause (iii) herein shall not apply in the event
that your rights in the Outstanding Options are converted into a right to receive an amount of cash
in accordance with Section 1(a), or (2) with respect to the Outstanding Options that were
exercisable on the effective date of the Change of Control or going private transaction with
respect to the Company, as the case may be, the substitute options shall become exercisable
immediately and the cash awards shall become payable promptly. The amount payable in cash shall be
payable together with interest from the effective date of the Change of Control or going private
transaction with respect to the Company until the date of payment at (a) the weighted average cost
of capital of the Company immediately prior to the effectiveness of the Change of Control or going
private transaction with respect to the Company, or (b) if the Company (or the Surviving Entity)
sets aside the funds in a trust or other funding arrangement, the actual earnings of such trust or
other funding arrangement.

     2. As used herein,

     “Acquisition price per share” shall mean the greater of (i) the highest price per
share stated on the Schedule 13D or any amendment thereto filed by the holder of twenty percent
(20%) or more of the Company’s voting power which gives rise to the Change of Control or going
private transaction with respect to the Company, and (ii) the highest fair market value per share
of common stock during the ninety-day period ending on the date of such Change of Control or going
private transaction with respect to the Company.

     “Change of Control” means the acquisition, in a transaction or a series of related
transactions, by any person or group, other than Charles F. Dolan or members of the immediate
family of Charles F. Dolan or trusts for the benefit of Charles F. Dolan or his immediate family
(or an entity or entities controlled by any of them) or any employee benefit plan sponsored or
maintained by the Company, of the power to direct the management of the Company or substantially
all its assets (as constituted immediately prior to such transaction or transactions).

     “Going private transaction” means a transaction involving the purchase of Company
securities described in Rule 13e-3 to the Securities and Exchange Act of 1934.

     “Good reason” means

     (i) without your express written consent any reduction in your base salary or bonus potential,
or any material impairment or material adverse change in your working conditions (as the same may
from time to time have been improved or, with your written consent, otherwise altered, in each
case, after the Distribution Date) at any time after or within ninety (90) days prior to the Change
of Control, including, without limitation, any material reduction of your other compensation,
executive perquisites or other employee benefits (measured, where applicable, by level or
participation or percentage of award under any plans of the Company), or material impairment or
material adverse change of your level of responsibility, authority, autonomy or title, or to your
scope of duties;

-8-

 

     (ii) any failure by your Employer to comply with any of the provisions of this Agreement,
other than an insubstantial or inadvertent failure remedied by your Employer promptly after receipt
of notice thereof given by you;

     (iii) your Employer’s requiring you to be based at any office or location more than
thirty-five (35) miles from your location immediately prior to such event except for travel
reasonably required in the performance of your responsibilities; or

     (iv) any failure by the Company to obtain the assumption and agreement to perform this
Agreement by a successor as contemplated by Section 1.

     “Merger price per share” shall mean, in the case of a merger, consolidation, sale,
exchange or other disposition of assets that results in a Change of Control or going private
transaction with respect to the Company (a “Merger”), the greater of (i) the fixed or
formula price for the acquisition of shares of common stock occurring pursuant to the Merger, and
(ii) the highest fair market value per share of common stock during the ninety-day period ending on
the date of such Change of Control or going private transaction with respect to the Company. Any
securities or property which are part or all of the consideration paid for shares of common stock
pursuant to the Merger shall be valued in determining the merger price per share at the higher of
(A) the valuation placed on such securities or property by the Company, person or other entity
which is a party with the Company to the Merger, or (B) the valuation placed on such securities or
property by the Committee.

     “MSG Employee” means any individual who is employed by the MSG Group.

     “Offer price per share” shall mean, in the case of a tender offer or exchange offer
which results in a Change of Control or going private transaction with respect to the Company (an
“Offer”), the greater of (i) the highest price per share of common stock paid pursuant to
the Offer, or (ii) the highest fair market value per share of common stock during the ninety-day
period ending on the date of a Change of Control or going private transaction with respect to the
Company. Any securities or property which are part or all of the consideration paid for shares of
common stock in the Offer shall be valued in determining the Offer Price per share at the higher of
(A) the valuation placed on such securities or property by the Company, person or other entity
making such offer or (B) the valuation placed on such securities or property by the Committee.

     “Surviving Entity” means the entity that owns, directly or indirectly, after
consummation of any transaction, substantially all of the Company’s assets (as constituted
immediately prior to such transaction). If any such entity is at least majority-owned, directly or
indirectly, by any entity (a “parent entity”) which has shares of common stock (or partnership
units) traded on a national stock exchange or the over-the-counter market, as reported on NASDAQ,
then such parent entity shall be deemed to be the Surviving Entity provided that it there shall be
more than one such parent entity, the parent entity closest to ownership of the Company’s assets
shall be deemed to be the Surviving Entity.

-9-

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