Document:

Restricted Stock Award Agreement

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

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

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 3. Terms and Conditions. 
 (a) Vesting. 
 (i)
Except as otherwise provided in this Agreement, the Restricted Shares shall vest and become non-forfeitable, upon the achievement of both the “Service Condition” and the “Performance Condition” (each as defined below) with
respect to all or any portion of the Restricted Shares. 
 (A) Service Condition. The “Service
Condition” shall be deemed satisfied with respect to each of the Tranches described in Section 3(a)(i)(B) in equal annual installments with respect to 20% of the Restricted Shares covered by each such Tranche on the day immediately
prior to each of the first, second, third, fourth and fifth anniversaries of the Effective Date (i.e., the Service Condition shall be deemed satisfied in 20% equal annual installments on March 14 of 2009, 2010, 2011, 2012 and 2013,
respectively, and each such date is referred to herein as a “Service Vesting Date”), provided that the Executive remains employed with the Company on each such date (subject to Section 3(a)(iii) below). 
 (B) Performance Condition. The “Performance Condition” shall be deemed satisfied with respect to each of the
“Tranches” of Restricted Shares described below upon the achievement at any time prior to the fifth anniversary of the Effective Date of the corresponding performance hurdle described below, in each case, provided that the Executive is
employed with the Company at the time such Performance Condition is met (subject to Section 3(a)(iii)(D) below). 
 For
the purposes of this Section 3(a)(i)(B), the Restricted Shares shall be divided into four “Tranches” as follows: 
 (1) “First Tranche” shall mean 413,666 of the Restricted Shares, for which the Performance Condition will be satisfied upon achievement of the First Performance Hurdle; 
 (2) “Second Tranche” shall mean 413,667 of the Restricted Shares, for which the Performance Condition will be satisfied
upon achievement of the Second Performance Hurdle; 
 (3) “Third Tranche” shall mean 413,667 of the
Restricted Shares, for which the Performance Condition will be satisfied upon achievement of the Third Performance Hurdle; and 
 (4) “Fourth Tranche” shall mean 509,000 of the Restricted Shares, for which the Performance Condition will be satisfied upon achievement of the Fourth Performance Hurdle. 
 For purposes of illustrating the vesting terms described in this Section 3(a)(i), on each Service Vesting Date, an amount of
Restricted Shares equal to the product of 20% multiplied by the number of Restricted Shares covered by each 

  

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

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 (C) Voluntary Termination without Good Reason. Upon the Executive’s cessation
of employment with the Company or any Affiliate of the Parent due to a voluntary termination without Good Reason, all Unvested Restricted Shares shall be forfeited by the Executive without the receipt of consideration. 
 (D) Termination Due to Death or Disability. In the event of the Executive’s cessation of employment with the Company or any
Affiliate of the Parent by reason of the Executive’s death or Disability, the Service Condition shall be deemed to have been satisfied to the same extent as if the Executive had remained employed by the Company for 12 months following such
termination date. Additionally, following the Executive’s termination due to death or Disability, any Unvested Restricted Shares shall continue to vest in accordance with Section 3(a) to the extent that any additional Performance
Conditions are satisfied during the 12 month period following the date of such cessation of employment. Any Unvested Restricted Shares that remain outstanding 12 months following the date of the Executive’s termination due to death or
Disability shall be forfeited by the Executive without the receipt of consideration. 
 (E) Termination without Cause or
for Good Reason in Connection with a Change in Control. Upon the Executive’s cessation of employment with the Company or any Affiliate of the Parent due to a termination without Cause or for Good Reason, in each case, provided that such
termination occurs on or after, or in anticipation of, a Change in Control, the Service Condition applicable to each share of Restricted Stock shall be deemed to have been fully attained. 
 (iv) Notwithstanding anything herein to the contrary, (A) upon a Change in Control following which the Common Stock ceases to be
traded on an Exchange, any Unvested Restricted Shares for which a Performance Condition has not been met will be forfeited; provided, however, that Unvested Restricted Shares for which a Performance Condition has been met, on or prior
to such Change in Control, will continue to vest upon satisfaction of the corresponding Service Condition; and (B) if the Fair Market Value as of the date of any Change in Control (or, if greater, the per share consideration paid in connection
with such Change in Control) exceeds the per share dollar threshold amount of any of the Performance Conditions described above (without regard to the number of consecutive trading days for which the average closing price was achieved) then such
Performance Condition shall be deemed to have been achieved as of the date of such Change in Control, to the extent not previously achieved. 
 (v) In the event that the Common Stock ceases to be traded on an Exchange following a transaction or other event that does not constitute a Change in Control, then, notwithstanding any provision of the Plan, the
Restricted Shares shall remain outstanding and shall continue to be governed by the terms of this Agreement; provided, however, that Parent shall, after good faith consultation with the Executive, equitably adjust the terms
applicable to the Restricted Shares (including, without limitation, the Performance Conditions) in order to maintain, to the extent reasonably possible, the intent of the parties in establishing the Performance Conditions set out in
this Agreement. 
  

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 (b) The term “Vested Restricted Shares,” as used herein, shall mean each Restricted
Share on and following the time that both the Service Condition and the Performance Condition set forth in Section 3(a) hereof have been satisfied as to such share and the Executive has paid any applicable taxes payable with respect to such
share as set forth in Section 3(c) hereof. Restricted Shares which have not become Vested Restricted Shares are hereinafter referred to as “Unvested Restricted Shares.” 
 (c) Taxes. The Executive shall pay to Parent or the Company (as designated by Parent) promptly upon request, and in any event at the time the
Executive recognizes taxable income in respect of the Restricted Stock Award, an amount equal to the taxes, if any, Parent determines it is required to withhold under applicable tax laws with respect to the Restricted Shares. Such payment shall be
made in the form of cash or, upon approval of Parent in its absolute and sole discretion, by having Parent withhold from the number of Restricted Shares otherwise issuable pursuant to the settlement of the Restricted Stock Award a number of
Restricted Shares with a Fair Market Value equal to such withholding liability. The Executive may, but shall not be required to, make an election pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the
“Code”) to realize taxable income in respect of the grant of the Restricted Stock Award, in an amount equal to the fair market value of the Restricted Shares on the Date of Grant. If Executive makes such an election, Executive shall
provide a copy of such election to the Company and Parent as required by Section 83(b) of the Code. 
 (d) Certificates.
Certificates evidencing the Restricted Shares shall be issued by Parent and shall be registered in the Executive’s name on the stock transfer books of Parent promptly after the Effective Date, but shall remain in the physical custody of Parent
or its designee at all times prior to, in the case of any particular Restricted Shares, becoming Vested Restricted Shares. As a condition to the receipt of this Restricted Stock Award, the Executive shall deliver to Parent a stock power, duly
endorsed in blank, relating to the Restricted Shares. 
 (e) Effect of Failure to Achieve Performance Conditions. Upon the fifth
anniversary of the Effective Date, any then remaining Unvested Restricted Shares shall be forfeited by the Executive without the receipt of consideration. 
 (f) Rights as a Stockholder; Dividends. The Executive shall be the record owner of the Restricted Shares unless and until such shares are forfeited pursuant to Sections 3(a)(iii) or 3(e) hereof or sold or
otherwise disposed of, and as record owner shall be entitled to all rights of a common stockholder of Parent, including, without limitation, voting rights, if any, with respect to the Restricted Shares; provided that any cash or in-kind dividends
paid with respect to Unvested Restricted Shares shall be withheld by Parent and shall be paid to the Executive, without interest, upon the earliest to occur of (i) the fifth anniversary of the Effective Date, or (ii) the first anniversary
of the Executive’s separation from service within the meaning of Code Section 409A for any reason, in each case, only with respect to such Restricted Shares (if any) that have become Vested Restricted Shares on or prior to such date. As
soon as practicable following the vesting of any Restricted Shares, certificates for such Vested Restricted Shares shall be delivered to the Executive or the Executive’s beneficiary along with the stock power relating thereto. 
  

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 (g) Restrictive Legend. All certificates representing Restricted Shares shall have affixed thereto
a legend in substantially the following form, in addition to any other legends that may be required under federal or state securities laws: 
 TRANSFER OF THIS CERTIFICATE AND THE SHARES REPRESENTED HEREBY IS RESTRICTED PURSUANT TO THE TERMS OF THE AMENDED AND RESTATED WARNER MUSIC GROUP CORP. 2005 OMNIBUS AWARD PLAN AND A RESTRICTED STOCK AWARD AGREEMENT, DATED AS OF MARCH 15,
2008, BETWEEN WARNER MUSIC GROUP CORP. AND LYOR COHEN. A COPY OF SUCH PLAN AND AGREEMENT IS ON FILE AT THE OFFICES OF WARNER MUSIC GROUP CORP. 
 (h) Transferability. No Restricted Share may, at any time prior to becoming a Vested Restricted Share, be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Executive and any such purported
assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against Parent; provided, that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale,
transfer or encumbrance. 
 4. Miscellaneous. 
 (a) Notices. Any notice, consent, request or other communication made or given in accordance with this Agreement shall be in writing and shall be deemed to have been duly given when actually received or, if
mailed, three days after mailing by registered or certified mail, return receipt requested, or one business day after mailing by a nationally recognized express mail delivery service with instructions for next-day delivery, to those persons listed
below at their following respective addresses or at such other address or person’s attention as each may specify by notice to the others: 
 To Parent: 
 Warner Music Group Corp. 
 75 Rockefeller Plaza 
 New York, New York 10019 
 Attention: General Counsel 
 To the Executive:

 The most recent address for the Executive in the records of Parent or the Company. The Executive hereby agrees to promptly provide Parent
and the Company with written notice of any change in the Executive’s address for so long as this Agreement remains in effect. 
 (b)
Bound by Plan and Stockholders Agreement. By signing this Agreement, the Executive acknowledges that he has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of
the Plan. Additionally, the Executive acknowledges that the Restricted Shares shall be subject to the terms of the Amended and Restated Stockholders Agreement, dated as of May 10, 2005, by and among Parent, WMG Holdings Corp., the Company,
Executive and certain other stockholders of Parent. 
  

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

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 (j) JURY TRIAL WAIVER. THE PARTIES EXPRESSLY AND KNOWINGLY WAIVE ANY RIGHT TO A JURY TRIAL IN THE
EVENT ANY ACTION ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT IS LITIGATED OR HEARD IN ANY COURT. 
 (k) Headings. The headings
of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement. 
 (l) Signature in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument. The parties hereto confirm that any facsimile copy of another party’s executed counterpart of this Agreement (or its signature page thereof) will be deemed to be an executed original
thereof. 
  

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

	
	Warner Music Group Corp.
	
	 /s/ Paul Robinson

	By: Paul Robinson
	Title: EVP & General Counsel
	
	Lyor Cohen
	
	 /s/ Lyor Cohen

  

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

					
	Dated:                     	 	Name:	 	  

  

 A-10Amendment to Employment Agreement

 Exhibit 10.8.2 
 AMENDMENT TO 
 EMPLOYMENT AGREEMENT 
 THIS AMENDMENT (this “Amendment”) is made and entered into as of January 29, 2008 (the “Effective Date”) between the FEDERAL
HOME LOAN BANK OF CHICAGO (the “Company”) and J. MIKESELL THOMAS (the “Executive”). 
 RECITALS: 
 A. The Company and the Executive are parties to that certain Employment Agreement dated as of August 30, 2004 (the “Agreement”); and

 B. The parties wish to amend the Agreement in one respect. 
 NOW, THEREFORE, in consideration of the premises and the continuing covenants and agreements of the parties, it is agreed as follows: 
 1. Section 4(b) of the Agreement is amended in its entirety to read as follows: 
 (b) Bonus Programs.
The Executive shall participate in the President’s Incentive Compensation Plan and Long Term Incentive Plan, with a minimum total incentive compensation during each of calendar years 2004, 2005, and 2006 equal to 100% of the
Executive’s Base Salary for each such calendar year (pro rated for any partial calendar years). The Executive’s maximum total incentive compensation will be 125% of the Executive’s Base Salary for each such calendar year (pro rated
for any partial calendar years). Notwithstanding any provision to the contrary contained in the President’s Incentive Compensation Plan or elsewhere, for calendar year 2007, the Executive’s total incentive compensation award shall be
$300,000.00. Beginning January 1, 2008, the Executive’s total incentive compensation target for each calendar year will not be less than 74% of his Base Salary. The Executive shall be paid his annual bonus (minimum total incentive
compensation and/or any other bonus amounts) no later than the date when annual bonuses shall be paid to other senior executives of the Company. 
 2. Except
as amended by this document, the Agreement, shall remain in full force and effect and is hereby ratified, approved, and confirmed in all respects. 
 [signature page follows] 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the Effective Date. 
  

							
	 FEDERAL HOME LOAN BANK
OF CHICAGO
	 	EXECUTIVE
				
	By:	 	 /s/ P. David Kuhl
	 		 	 /s/ J. Mikesell Thomas

	Name:	 	P. David Kuhl	 	Name:	 	J. Mikesell Thomas
	Title:	 	Chairman of the Board of Directors	 	Title:	 	President & CEO

  

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