Document:

Exhibit 10.2

 

EMPLOYMENT AGREEMENT

(Todd Pedersen)

 

EMPLOYMENT AGREEMENT (the “Agreement”)
dated August 7, 2014 by and between APX Group, Inc., a Delaware corporation (the “Company”) and Todd Pedersen
(“Executive”).

 

WHEREAS, the Company is an indirect, wholly
owned subsidiary of 313 Acquisition, LLC, a Delaware limited liability company (“Parent”);

 

WHEREAS, the Executive and Parent entered
into an Employment Agreement dated as of November 16, 2012 (the “Prior Agreement”), pursuant to which the Executive
serves as an employee of the Company and/or one or more of its subsidiaries;

 

WHEREAS, the Company desires to assume all
existing obligations of Parent under the Prior Agreement, and for one or more of its subsidiaries to continue to employ Executive
and Executive desires to continue to be employed in such capacities, on the terms set forth in this Agreement as of the date hereof;
and

 

WHEREAS, Parent, the Company and Executive
desire to enter into this Agreement embodying the terms of such employment which shall, effective as of the date hereof, replace
and supersede the Prior Agreement;

 

NOW, THEREFORE, in consideration of the premises
and mutual covenants herein and for other good and valuable consideration, the parties agree as follows:

 

1.          Term
of Employment. Subject to the provisions of Section 5 of this Agreement, Executive shall continue to be employed by the Company
and/or one or more of its subsidiaries through on November 16, 2017 (the “Employment Term”) on the terms and
subject to the conditions set forth in this Agreement; provided, however, the Employment Term shall be automatically
extended for an additional one-year period commencing on November 16, 2017 and, thereafter, on each such successive anniversary
thereafter (each an “Extension Date”), unless the Company or Executive provides the other party hereto at least
90 days prior written notice before the next Extension Date that the Employment Term shall not be so extended. Parent hereby assigns
to the Company, and the Company hereby assumes, all existing obligations of Parent under the Prior Agreement.

 

2.          Position,
Duties and Authority.

 

(a)          During
the Employment Term, Executive shall serve as the Company’s Chief Executive Officer. In such position, Executive shall have
such duties, functions, responsibilities and authority as shall be determined from time to time by the Board of Directors of the
Company (the “Board”) and be consistent with the duties, functions, responsibilities and authority of an individual
in Executive’s position at a portfolio company of a private equity firm. Executive shall report directly to the Board. If
requested by the Board, Executive shall also serve as a member of the Board without additional compensation.

 

    	 

    	 

    

  

(b)          Executive
will devote substantially all of Executive’s business time and reasonable best efforts to the operation and oversight of
the Company’s businesses and performance of Executive’s duties hereunder (excluding periods of vacation and sick leave)
and will not engage in any other business activities that could conflict with his duties or services to the Company; provided
that nothing herein shall preclude Executive, subject to obtaining consent of the Board (not to be unreasonably withheld), from
(i) accepting appointment to or continuing to serve on any board of directors or trustees of any business corporation, and (ii)
serving as an officer or director or otherwise participating in non-profit educational, welfare, social, religious and civil organizations.
The parties agree that consent shall be deemed obtained with respect to Executive’s service on the board of directors Intermountain
Health Care.

 

3.          Compensation.

 

(a)          Base
Salary. During the Employment Term, the Company shall pay Executive a base salary (“Base Salary”) at the
annual rate of $500,000, payable in regular installments in accordance with the Company’s usual payment practices. Executive’s
Base Salary shall be subject to annual review and subject to increase, if any, as may be determined from time to time in the sole
discretion of the Board, but in no event shall the Company be entitled to reduce Executive’s Base Salary.

 

(b)          Annual
Bonus. During the Employment Term, Executive shall be eligible to earn an annual bonus award (an “Annual Bonus”)
with a target amount equal to 100% of Executive’s Base Salary at the end of the performance period (the “Annual
Target Bonus”). Each Annual Bonus shall be determined based on the achievement of performance objectives and targets
(including the level of achievement required for Executive to earn the threshold, target and high performance objectives) established
by the Board for the applicable year, as set forth below.

  

	% Attainment of

Performance Targets	 	Multiple of Base Salary
	Less than 90%	 	0
	90%	 	0.5x
	100%	 	1.0x
	110%	 	2.0x
	130% or greater	 	2.5x

 

To the extent actual performance falls between
the levels of attainment set forth above, the actual Annual Bonus shall be calculated using straight line interpolation between
such levels. For the avoidance of doubt, in no event will the actual Annual Bonus payable in respect of any performance period
be greater than 2.5x the Base Salary at the end of the applicable performance period. The Annual Bonus, if any, shall be paid to
Executive within two and one-half months after the end of the applicable fiscal year. Except as provided in Section 5, no Annual
Bonus shall be payable in respect of any fiscal year in which Executive’s employment is terminated.

 

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4.          Benefits.

 

(a)          General.
During the Employment Term, Executive shall be entitled to participate in the Company’s employee benefit, fringe and perquisite
plans, practices, policies and arrangements as in effect from time to time (collectively, “Employee Benefits”),
on generally the same terms and conditions as each of the Employee Benefits are made available to other senior executives of the
Company (other than with respect to annual bonuses, incentive plans and severance plans (as well as any other terms and conditions
specifically determined under this Agreement), the benefits for each which shall be determined instead in accordance with this
Agreement); provided that Executive shall be entitled to no less than four (4) weeks’ vacation per calendar year.

 

(b)          Reimbursement
of Business Expenses. During the Employment Term, the Company shall reimburse Executive for reasonable and necessary business
expenses incurred by Executive in the performance of Executive’s duties hereunder in accordance with its then prevailing
policy for senior executives (which shall include appropriate itemization and substantiation of expenses incurred).

 

(c)          Fringe
Benefits. Executive shall be entitled to reasonable access, for personal use, to the Company’s airplane. All personal
use shall be subject to reimbursement by Executive of amounts determined under a reasonable cost allocation methodology consistent
with IRS guidelines to avoid imputed income to Executive, and the Company shall pay Executive $300,000 per year in monthly installments
in arrears, subject to all applicable taxes and withholdings, for the purpose of reimbursing the Company for the costs to Executive
of any such personal use. The Company shall engage a financial advisor to provide customary financial advice to Executive and to
manage Executive’s personal investments, provided that the annual compensation to such advisor to provide such services to
Executive and the Company’s President, in the aggregate, shall not exceed $250,000 annually.

 

5.          Termination.

 

(a)          The
Employment Term and Executive’s employment hereunder may be terminated by either party at any time and for any reason, subject
to the notice and cure provisions set forth below. Notwithstanding any other provision of this Agreement, the provisions of this
Section 5 shall exclusively govern Executive’s rights upon termination of employment with the Company and its affiliates.

 

(b)          By
the Company for Cause or by Executive other than as a result of Good Reason.

 

(i)          The
Employment Term and Executive’s employment hereunder may be terminated by the Company for Cause and shall terminate automatically
upon the effective date of Executive’s resignation other than as a result of Good Reason (as defined in Section 5(d)(i)).

 

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(ii)         Definition
of Cause. For purposes of this Agreement, “Cause” shall mean (A) Executive’s continued failure substantially
to perform Executive’s employment duties (other than as a result of total or partial incapacity due to physical or mental
illness) for a period of 10 days following written notice by the Company to Executive of such failure, (B) dishonesty in the performance
of Executive’s employment duties that is materially injurious to the Company, (C) an act or acts on Executive’s part
constituting (x) a felony charge under the laws of the United States or any state thereof or (y) a misdemeanor charge involving
moral turpitude, (D) Executive’s willful malfeasance or willful misconduct in connection with Executive’s employment
duties which causes substantial injury to the financial condition or business reputation of the Company or any of its subsidiaries
or affiliates or (E) the Executive’s material breach of any of the covenants set forth in Section 6 (other than any action
taken in good faith and in a manner not opposed to the best interests of the Company, and which is promptly remedied by Executive
upon notice by the Board); provided that none of the foregoing events shall constitute Cause unless Executive fails to cure
such event and remedy any adverse or injurious consequences arising from such events within 30 days after receipt from the Company
of written notice of the event which constitutes Cause (except that no cure or remedy period shall be provided if the event or
such consequences are not capable of being cured and remedied).

 

(iii)        If
Executive’s employment is terminated by the Company for Cause, Executive shall be entitled to receive:

 

(A)         no
later than 10 days following the date of termination, the Base Salary through the date of termination;

 

(B)         any
Annual Bonus earned, but unpaid, as of the date of termination for the immediately preceding fiscal year, paid in accordance with
Section 3(b) (except to the extent payment is otherwise deferred pursuant to any applicable deferred compensation arrangement with
the Company, in which case such payment shall be made in accordance with the terms and conditions of such deferred compensation
arrangement);

 

(C)         reimbursement,
within 60 days following receipt by the Company of Executive’s claim for such reimbursement (including appropriate supporting
documentation), for any unreimbursed business expenses properly incurred by Executive in accordance with Company policy prior to
Executive’s termination; provided that such claims for such reimbursement are submitted to the Company within 90 days following
the date of Executive’s termination of employment; and

 

(D)         such
Employee Benefits, if any, as to which Executive may be entitled under the tax qualified employee benefit plans of the Company,
payable in accordance with the terms and conditions of such tax qualified employee benefit plans (the amounts described in clauses
(A) through (D) hereof being referred to as the “Accrued Rights”).

  

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For the avoidance of doubt, in any legal proceeding to determine
whether grounds for Cause existed on any date that the Company took action on the basis of the existence of Cause, the Company
shall bear the burden of demonstrating grounds for Cause existed on such date.

 

Following such termination of Executive’s
employment by the Company for Cause, except as set forth in this Section 5(b)(iii), Executive shall have no further rights to any
compensation or any other benefits under this Agreement.

 

(iv)        If
Executive resigns other than as a result of Good Reason, provided that Executive will be required to give the Company at least
60 days advance written notice of any resignation of Executive’s employment (other than as a result of Good Reason), Executive
shall be entitled to receive the Accrued Rights. Following such resignation by Executive other than as a result of Good Reason,
except as set forth in this Section 5(b)(iv), Executive shall have no further rights to any compensation or any other benefits
under this Agreement.

 

(c)          Disability
or Death.

 

(i)          Disability.
During any period that Executive fails to perform his duties hereunder as a result of incapacity due to physical or mental
illness or injury (the “Disability Period”), Executive shall continue to receive his full Base Salary set forth
in Section 3(a) until his employment is terminated pursuant to Section 5(a). For purposes of this Agreement, “Disability”
shall mean Executive’s inability to perform, with or without reasonable accommodation, Executive’s duties under this
Agreement due to a physical or mental illness or injury for a period of six consecutive months or for an aggregate of 12 months
in any consecutive 24-month period. Any question as to the existence of the Disability of Executive as to which Executive and the
Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to Executive and the
Company. If Executive and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician
and those two physicians shall select a third physician who shall make such determination in writing. The determination of Disability
made in writing to the Company and Executive shall be final and conclusive for all purposes of this Agreement.

 

(ii)         Upon
termination of Executive’s employment hereunder for either Disability or death, Executive or Executive’s estate, survivors
or beneficiaries (as the case may be) shall be entitled to receive:

 

(A)         the
Accrued Rights;

 

(B)         no
later than 10 days following the date of termination, a pro rata portion of the Annual Target Bonus payable for the fiscal year
in which such termination occurs, based on a fraction, the numerator of which is the number of days during the fiscal year up to
and including the date of termination of Executive’s employment and the denominator of which is the number of days in such
fiscal year (the “Pro-Rated Bonus”);

 

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(C)         a
cash payment representing the COBRA costs of providing health and welfare benefits for Executive and Executive’s dependents
under the plans in which Executive was participating on the date of the applicable “COBRA qualifying event” for two
years (the “COBRA Payment”); and

 

(D)         death
or disability benefits under any applicable plans and programs of the Company in accordance with the terms and provisions of such
plans and programs.

 

(d)          By
the Company Without Cause or Resignation by Executive as a Result of Good Reason.

 

(i)          “Good
Reason” shall be deemed to exist upon the occurrence of (A) a material reduction in Executive’s base salary; (B)
a material diminution in Executive’s title or Executive’s duties, authority and responsibilities measured in the aggregate;
(C) the relocation of Executive’s primary office location to a location that is more than 75 miles from Executive’s
primary office location, in each case without Executive’s prior written consent; (D) the Company’s material breach
of any of the provisions of this Agreement; or (E) notwithstanding the provisions of the Securityholders Agreement, as of November
16, 2012 by and among Parent and the signatories thereto, Executive’s removal from the Board by the Board of Parent or its
stockholders; provided that none of the foregoing events shall constitute Good Reason unless the Company fails to cure such
event within 30 days after receipt from Executive of written notice of the event which constitutes Good Reason; and provided,
further, that “Good Reason” shall cease to exist for an event on the 60th day following the later of its occurrence
or Executive’s knowledge thereof, unless Executive has given the Company written notice thereof prior to such date.

 

(ii)         If
Executive’s employment is terminated by the Company without Cause (other than by reason of death or Disability) or Executive
resigns as a result of Good Reason, Executive shall be entitled to receive:

 

(A)         the
Accrued Rights;

 

(B)         the
Pro-Rated Bonus;

 

(C)         subject
to Executive’s continued compliance with Section 6 and material compliance with Section 7 hereof, and the execution and non-revocation
of the Release (as defined below), a lump-sum cash payment within 55 days after such termination and effectiveness of the Release
equal to the sum of (x) 200% of Executive’s Base Salary as of the date immediately prior to Executive’s termination
of employment and (y) 200% of the actual Annual Bonus paid in respect of the immediately preceding fiscal year (or, if such termination
occurs prior to the first date on which an Annual Bonus would have been paid had any payment been due, the Target Annual Bonus
for the immediately preceding fiscal year), and (z) the COBRA Payment.

 

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(e)          Release.
Amounts payable to Executive under Sections 5(d)(ii)(B) and 5(d)(ii)(C) (collectively, the “Conditioned Benefits”)
are subject to (i) Executive’s execution and non-revocation of a release of claims, substantially in the form attached hereto
as Exhibit I (the “Release”), within 60 days of the date of termination and (ii) the expiration of any revocation
period contained in such Release. Further, to the extent that any of the Conditioned Benefits constitutes “nonqualified deferred
compensation” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”),
any payment of any amount or provision of any benefit otherwise scheduled to occur prior to the sixtieth (60th) day
following the date of Executive’s termination of employment hereunder, but for the condition on executing the Release as
set forth herein, shall not be made until the first regularly scheduled payroll date following such sixtieth (60th)
day, after which any remaining Conditioned Benefits shall thereafter be provided to Executive according to the applicable schedule
set forth herein.

 

(f)          Expiration
of Employment Term. Unless the parties otherwise agree in writing, continuation of Executive’s employment with the Company
following the expiration of the Employment Term shall be deemed an employment at-will and shall not be deemed to extend any of
the provisions of this Agreement and Executive’s employment may thereafter be terminated at will by either Executive or the
Company; provided that the provisions of Sections 6, 7 and 8 of this Agreement shall survive any termination of this Agreement
or Executive’s termination of employment hereunder.

 

(g)          Notice
of Termination; Board/Committee Resignation. Any purported termination of employment by the Company or by Executive (other
than due to Executive’s death) pursuant to Section 5 of this Agreement shall be communicated by written Notice of Termination
to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall
indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of employment under the provision so indicated. Upon termination of Executive’s
employment for any reason, Executive agrees to resign, as of the date of such termination and to the extent applicable, from the
Board (and any committees thereof) and the Board of Directors (and any committees thereof) of any of the Company’s affiliates
(except to the extent Executive is otherwise entitled pursuant to a separate contractual arrangement to continue to serve as a
member of the Board).

 

6.          Non-Competition;
Non-Solicitation. Executive acknowledges and recognizes the highly competitive nature of the businesses of the Company and
its affiliates and accordingly agrees as follows:

 

(a)          Non-Competition.

 

(i)          During
Executive’s employment hereunder and, for a period of two years following the date Executive ceases to be employed by the
Company (the “Restricted Period”), Executive will not, whether on Executive’s own behalf or on behalf
of or in conjunction with any person, firm, partnership, joint venture, association, corporation or other business organization,
entity or enterprise whatsoever (“Person”), directly or indirectly, solicit or assist in soliciting in competition
with the Restricted Group in the Business, the business of any then current or prospective client or customer with whom Executive
(or Executive’s direct reports) had personal contact or dealings on behalf of the Company during the one-year period preceding
Executive’s termination of employment.

 

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(ii)         During
the Restricted Period, Executive will not directly or indirectly:

 

(A)         engage
in the Business anywhere in the United States, or in any geographical area that is within 100 miles of any geographical area where
the Restricted Group engages in the Business, including, for the avoidance of doubt, by entering into the employment of or rending
any services to a Core Competitor, except where such employment or services do not relate in any manner to the Business;

 

(B)         acquire
a financial interest in, or otherwise become actively involved with, any Person engaged in the Business, directly or indirectly,
as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant; or

 

(C)         intentionally
and adversely interfere with, or attempt to adversely interfere with, business relationships between the members of the Restricted
Group and any of their clients, customers, suppliers, partners, members or investors.

 

(iii)        Notwithstanding
anything to the contrary in this Agreement, Executive may, directly or indirectly own, solely as an investment, securities of any
Person engaged in a Business (including, without limitation, a Core Competitor) which are publicly traded on a national or regional
stock exchange or on the over-the-counter market if Executive (i) is not a controlling person of, or a member of a group which
controls, such person and (ii) does not, directly or indirectly, own 2% or more of any class of securities of such Person.

 

(b)          Non-Solicitation.
During Executive’s employment hereunder and the Restricted Period, Executive will not, whether on Executive’s own behalf
or on behalf of or in conjunction with any Person, directly or indirectly:

 

(i)          solicit
or encourage any employee of the Restricted Group to leave the employment of the Restricted Group;

 

(ii)         hire
any executive-level employee who was employed by the Restricted Group as of the date of Executive’s termination of employment
with the Company or who left the employment of the Restricted Group coincident with, or within one year prior to or one year after,
the date of Executive’s termination of employment with the Company; or

 

(iii)        encourage
any material consultant of the Restricted Group to cease working with the Restricted Group.

 

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(iv)        For
purposes of this Agreement:

 

(A)         “Restricted
Group” shall mean, collectively, Parent, the Company and their respective subsidiaries and, to the extent engaged in the
Business, their respective Affiliates (including The Blackstone Group L.P. and its Affiliates).

 

(B)         “Business”
shall mean (1) origination, installation, or monitoring services related to residential or commercial security, life-safety, energy
management or home automation services, (2) installation or servicing of residential or commercial solar panels or sale of electricity
generated by solar panels, (3) design, engineering or manufacturing of technology or products related to residential or commercial
security, life-safety, energy management or home automation services and/or (4) provision of wireless voice or data services, including
internet, into the home.

 

(C)         “Core
Competitor” shall mean ADT Home Security/Broadview Security, Protection 1, Inc., Protect America, Inc., Stanley Security
Solutions, Inc., Vector Security, Inc., Slomins, Inc., Monitronics International, Inc., Life Alert, Comcast Corporation, Time Warner
Inc., AT&T Inc., Verizon Communications, Inc., DISH Network Corp., DIRECTV, Pinnacle and each of their respective Affiliates,
and Sungevity, Inc., RPS, Sunrun Inc., Solar City, Clean Power Finance, SunPower Corporation, Corbin Solar Solutions LLC, Galkos
Construction, Inc., and any of their respective current or future dealers.

 

(c)          During
the Restricted Period, Executive agrees not to make, or cause any other person to make, any communication that is intended to criticize
or disparage, or has the effect of criticizing or disparaging, Parent or any of its affiliates, agents or advisors (or any of its
or their respective employees, officers or directors (it being understood that comments made in Executive’s good faith performance
of his duties hereunder shall not be deemed disparaging or defamatory for purposes of this Agreement). During the Restricted Period,
the Company shall instruct its executive officers and directors to refrain from intentionally making any public communication outside
the ordinary course of such person’s business that is intended to criticize or disparage, or has the effect of criticizing
or disparaging, Executive. Nothing set forth herein shall be interpreted to prohibit either party from responding truthfully to
incorrect public statements, making truthful statements when required by law, subpoena or court order and/or from responding to
any inquiry by any regulatory or investigatory organization.

 

(d)          It
is expressly understood and agreed that although Executive and the Company consider the restrictions contained in this Section
6 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or
any other restriction contained in this Section 6 is an unenforceable restriction against Executive, the provisions of this Agreement
shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent
as such court may judicially determine or indicate to be enforceable. Alternatively, if any court of competent jurisdiction finds
that any restriction contained in this Section 6 is unenforceable, and such restriction cannot be amended so as to make it enforceable,
such finding shall not affect the enforceability of any of the other restrictions contained herein

 

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(e)          The
period of time during which the provisions of this Section 6 shall be in effect shall be extended by the length of time during
which Executive is in breach of the terms hereof as determined by any court of competent jurisdiction on the Company’s application
for injunctive relief.

 

(f)          The
provisions of this Section 6 shall survive the termination of Executive’s employment for any reason, including but not limited
to, any termination other than for Cause.

 

7.          Confidentiality;
Intellectual Property.

 

(a)          Confidentiality.

 

(i)          Executive
will not at any time (whether during or after Executive’s employment with the Company), (x) retain or use for the benefit,
purposes or account of Executive or any other Person; or (y) disclose, divulge, reveal, communicate, share, transfer or provide
access to any Person outside the Company (other than Executive’s professional advisers who are bound by confidentiality obligations
or otherwise in performance of Executive’s duties under Executive’s employment and pursuant to customary industry practice),
any non-public, proprietary or confidential information – including, without limitation, trade secrets, know-how, research
and development, software, databases, inventions, processes, formulae, technology, designs and other intellectual property, information
concerning finances, investments, profits, pricing, costs, products, services, vendors, customers, clients, partners, investors,
personnel, compensation, recruiting, training, advertising, sales, marketing, promotions, government and regulatory activities
and approvals – concerning the past, current or future business, activities and operations of Parent, its subsidiaries or
Affiliates and/or any third party that has disclosed or provided any of same to Parent, its subsidiaries or Affiliates on a confidential
basis (“Confidential Information”) without the prior written authorization of the Board.

 

(ii)         “Confidential
Information” shall not include any information that is (a) generally known to the industry or the public other than as a
result of Executive’s breach of this covenant; (b) made legitimately available to Executive by a third party without breach
of any confidentiality obligation of which Executive has knowledge; or (c) required by law to be disclosed; provided that with
respect to subsection (c) Executive shall give prompt written notice to the Company of such requirement, disclose no more information
than is so required, and reasonably cooperate with any attempts by the Company to obtain a protective order or similar treatment.

 

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(iii)        Except
as required by law, Executive will not disclose to anyone, other than Executive’s family (it being understood that, in this
Agreement, the term “family” refers to Executive, Executive’s spouse, children, parents and spouse’s parents)
and advisors, the existence or contents of this Agreement; provided that Executive may disclose to any prospective future
employer the provisions of Sections 6 and 7 of this Agreement. This Section 7(a)(iii) shall terminate if the Company publicly discloses
a copy of this Agreement (or, if the Company publicly discloses summaries or excerpts of this Agreement, to the extent so disclosed).

 

(iv)        Upon
termination of Executive’s employment with the Company for any reason, Executive shall (A) cease and not thereafter commence
use of any Confidential Information or intellectual property (including without limitation, any patent, invention, copyright, trade
secret, trademark, trade name, logo, domain name or other source indicator) owned or used by the Company, its subsidiaries or affiliates;
and (B) immediately destroy, delete, or return to the Company, at the Company’s option, all originals and copies in any form
or medium (including memoranda, books, papers, plans, computer files, letters and other data) in Executive’s possession or
control (including any of the foregoing stored or located in Executive’s office, home, laptop or other computer, whether
or not Company property) that contain Confidential Information, except that Executive may retain only those portions of any personal
notes, notebooks and diaries that do not contain any Confidential Information.

 

(b)          Intellectual
Property.

 

(i)          If
Executive creates, invents, designs, develops, contributes to or improves any works of authorship, inventions, intellectual property,
materials, documents or other work product (including without limitation, research, reports, software, databases, systems, applications,
presentations, textual works, content, or audiovisual materials) (“Works”), either alone or with third parties,
at any time during Executive’s employment by Parent or the Company and within the scope of such employment and/or with the
use of any of Parent’s or the Company’s resources (“Company Works”), Executive shall promptly and
fully disclose same to the Company and hereby irrevocably assigns, transfers and conveys, to the maximum extent permitted by applicable
law, all of Executive’s right, title, and interest therein (including rights under patent, industrial property, copyright,
trademark, trade secret, unfair competition, other intellectual property laws, and related laws) to the Company to the extent ownership
of any such rights does not vest originally in the Company. If Executive creates any written records (in the form of notes, sketches,
drawings, or any other tangible form or media) of any Company Works, Executive will keep and maintain same. The records will be
available to and remain the sole property and intellectual property of the Company at all times.

 

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(ii)         Executive
hereby irrevocably assigns, transfers and conveys to the Company all of his right, title and interest in (including rights under
patent, industrial property, copyright, trademark, trade secret, unfair competition, other intellectual property laws, and related
laws) any Works created, invented, designed, developed, contributed to or improved by Executive, either alone or with third parties
at any time on or prior to November 16, 2012 to the extent such Works are (A) used in or relate to the past, present or future
businesses of the Company and/or (B) associated with wireless data or voice products or services, including any high-speed wireless
internet projects, products or services (all of the foregoing, collectively, “Prior Works”). It is expressly
understood and agreed that although Executive and the Company consider this Agreement to be valuable and sufficient consideration
for the above assignments, if a final judicial determination is made by a court of competent jurisdiction that (A) any such assignment
is unenforceable against Executive, the provisions of this Section 7 shall not be rendered void but shall be deemed amended to
apply as to such maximum assignment of rights as such court may judicially determine or indicate to be enforceable, or (B) any
Work or any aspect thereof cannot be so assigned, Executive hereby grants to the Company a worldwide, fully paid-up, royalty-free,
perpetual, irrevocable, transferable and sublicensable license to use such Work in connection with the past, present and future
businesses of the Company.

 

(iii)        Executive
shall take all requested actions and execute all requested documents (including any licenses or assignments required by a government
contract) at the Company’s expense (but without further remuneration) to assist the Company in validating, maintaining, protecting,
enforcing, perfecting, recording, patenting or registering any of the Company’s rights in the Company Works and the Prior
Works. If Executive is unwilling or unable for any reason to sign any document for this purpose, then Executive hereby irrevocably
designates and appoints the Company and its duly authorized officers and agents as Executive’s agent and attorney in fact,
such appointment to be a right coupled with an interest and non-revocable, to act for and on Executive’s behalf and stead
to execute any documents and to do all other lawfully permitted acts in connection with the foregoing.

 

(iv)        Executive
shall not improperly use for the benefit of, bring to any premises of, divulge, disclose, communicate, reveal, transfer or provide
access to, or share with the Company any confidential, proprietary or non-public information or intellectual property relating
to a former employer or other third party without the prior written permission of such third party. Executive shall comply with
all relevant policies and guidelines of the Company that are from time to time previously disclosed to Executive, including regarding
the protection of Confidential Information and intellectual property and potential conflicts of interest.

 

(v)         The
provisions of Section 7 hereof shall survive the termination of Executive’s employment for any reason (except as otherwise
set forth in Section 7(a)(iv) hereof).

 

8.          Specific
Performance. Executive acknowledges and agrees that the Company’s remedies at law for a breach or threatened breach
of any of the provisions of Section 6 and Section 7 of this Agreement would be inadequate and the Company would suffer irreparable
damages as a result of such breach or threatened breach. In recognition of this fact, Executive agrees that, in the event of such
a breach or threatened breach, in addition to any remedies at law, the Company, without posting any bond, shall be entitled, in
addition to any other remedy available at law or equity, to cease making any payments or providing any benefit otherwise required
by this Agreement and obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent
injunction or any other equitable remedy which may then be available. In addition, upon any breach of Section 6 or any material
breach of Section 7 of this Agreement, Executive shall promptly return to the Company upon request all cash payments made to Executive
pursuant to Section 5 (if any), less any amounts paid by Executive as taxes in respect of such payments (unless such taxes are
actually recovered by Executive from the relevant governmental authority, in which case such tax amounts also shall be returned
to the Company). Any determination under this Section 8 of whether Executive is in compliance with Section 6 hereof and material
compliance with Section 7 hereof shall be determined based solely on the contractual provisions provided therein and the facts
and circumstances of Executive's actions without regard to whether the Company could obtain an injunction or other relief under
the law of any particular jurisdiction.

 

    	12

    	 

    

  

9.          Miscellaneous.

 

(a)   Indemnification; Directors’ and
Officers’ Insurance. The Company shall indemnify and hold Executive harmless for all acts and omissions occurring during
his employment with the Company or service as a member of the Board to the extent provided under the Company’s charter, by-laws
and applicable law, and shall promptly advance to Executive or Executive’s heirs or representatives all damages, costs, liabilities,
losses and expenses (including reasonable attorneys’ fees and expenses) (collectively, “Expenses”) as
a result of any claim, demand, request, investigation, dispute, controversy, threat, discovery request or request for testimony
or information (collectively, a “Claim”) or any proceeding (whether civil, criminal, administrative or investigative),
or any threatened Claim or proceeding (whether civil, criminal, administrative or investigative), against Executive that arises
out of or relates to Executive’s service as an officer, director or employee, as the case may be, of the Company, or Executive’s
service in any such capacity or similar capacity with an affiliate of the Company or other entity at the request of the Company,
upon receipt by the Company of a written request with appropriate documentation of such Expenses, and an undertaking by Executive
to repay the amount advanced if it shall ultimately be determined that Executive is not entitled to be indemnified by the Company
against such Expenses. During the Employment Term and for a term of six years thereafter, the Company, or any successor to the
Company, shall purchase and maintain, at its own expense, directors and officers liability insurance providing coverage for Executive
in the same amount as for members of the Board.

 

(b)   Governing Law. This Agreement shall
be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of laws principles
thereof.

 

(c)   Jurisdiction; Venue. Except as
otherwise provided in Section 8 in connection with equitable remedies, each of the parties hereto hereby irrevocably submits to
the exclusive jurisdiction of any federal court sitting in the Southern District of New York or any state court in the First Judicial
Department over any suit, action or proceeding arising out of or relating to this Agreement and each of the parties agrees that
any action relating in any way to this Agreement must be commenced only in the courts of the State of New York, federal or state.
Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted or not prohibited by law, any objection which
it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in such a court and any
claim that any such suit, action or proceeding brought in such a court has been brought in an inconvenient forum. Each of the parties
hereto hereby irrevocably consents to the service of process in any suit, action or proceeding by sending the same by certified
mail, return receipt requested, or by recognized overnight courier service, to the address of such party set forth in Section 9(j).

 

    	13

    	 

    

  

(d)   Entire Agreement; Amendments. This
Agreement (including, without limitation, the schedules and exhibits attached hereto) contains the entire understanding of the
parties with respect to the employment of Executive by the Company, and supersedes all prior agreements and understandings (including
verbal agreements) between Executive and the Company and/or its current or former affiliates regarding the terms and conditions
of Executive’s employment with the Company and/or its current or former affiliates, including, without limitation, the Prior
Agreement. There are no restrictions, agreements, promises, warranties, covenants or undertakings between the parties with respect
to the subject matter herein other than those expressly set forth herein. This Agreement (including, without limitation, the schedules
and exhibits attached hereto) may not be altered, modified, or amended except by written instrument signed by the parties hereto.

 

(e)   No Waiver. The failure of a party
to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of such party’s
rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

 

(f)   Severability. In the event that
any one or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby.

 

(g)   Assignment. This Agreement, and
all of Executive’s rights and duties hereunder, shall not be assignable or delegable by Executive. Any purported assignment
or delegation by Executive in violation of the foregoing shall be null and void ab initio and of no force and effect. This
Agreement shall be assigned by the Company to a person or entity which is a successor in interest (“Successor”)
to substantially all of the business operations of the Company. Upon such assignment, the rights and obligations of the Company
hereunder shall become the rights and obligations of such affiliate or successor person or entity.

 

(h)   Set Off; No Mitigation. Executive
shall not be required to mitigate the amount of any payment provided for pursuant to this Agreement by seeking other employment,
and such payments shall not be reduced by any compensation or benefits received from any subsequent employer or other endeavor.
Any amounts due under Section 5 of this Agreement are considered reasonable by the Company and are not in the nature of a penalty.

 

(i)   Compliance with Code Section 409A.

 

(i)          The
intent of the parties is that payments and benefits under this Agreement comply with or be exempt from Code Section 409A and, accordingly,
to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.  If any provision of this
Agreement (or of any award of compensation, including equity compensation or benefits) would cause Executive to incur any additional
tax or interest under Code Section 409A, the Company shall, after consulting with and receiving the approval of Executive, reform
such provision in a manner intended to avoid the incurrence by Executive of any such additional tax or interest.

 

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(ii)         A
termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the
payment of any amounts or benefits that are considered nonqualified deferred compensation under Code Section 409A upon or following
a termination of employment unless such termination is also a “separation from service” within the meaning of Code
Section 409A, and, for purposes of any such provision of this Agreement, references to a “termination,” “termination
of employment” or like terms shall mean “separation from service.” The determination of whether and when a separation
from service has occurred for proposes of this Agreement shall be made in accordance with the presumptions set forth in Section
1.409A-1(h) of the Treasury Regulations.

 

(iii)        Any
provision of this Agreement to the contrary notwithstanding, if at the time of Executive’s separation from service, the Company
determines that Executive is a “specified employee,” within the meaning of Code Section 409A, then to the extent any
payment or benefit that Executive becomes entitled to under this Agreement on account of such separation from service would be
considered nonqualified deferred compensation under Code Section 409A, such payment or benefit shall be paid or provided at the
date which is the earlier of (i) six (6) months and one day after such separation from service and (ii) the date of Executive’s
death (the “Delay Period”). Upon the expiration of the Delay Period, all payments and benefits delayed pursuant
to this Section 9(i) (whether they would have otherwise been payable in a single sum or in installments in the absence of such
delay) shall be paid or provided to Executive in a lump-sum, and any remaining payments and benefits due under this Agreement shall
be paid or provided in accordance with the normal payment dates specified for them herein.

 

(iv)        Any
reimbursements and in-kind benefits provided under this Agreement that constitute deferred compensation within the meaning of Code
Section 409A shall be made or provided in accordance with the requirements of Code Section 409A, including that (A) in no event
shall any fees, expenses or other amounts eligible to be reimbursed by the Company under this Agreement be paid later than the
last day of the calendar year next following the calendar year in which the applicable fees, expenses or other amounts were incurred;
(B) the amount of expenses eligible for reimbursement, or in-kind benefits that the Company is obligated to pay or provide, in
any given calendar year shall not affect the expenses that the Company is obligated to reimburse, or the in-kind benefits that
the Company is obligated to pay or provide, in any other calendar year, provided that the foregoing clause (B) shall not be violated
with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are
subject to a limit related to the period the arrangement is in effect; and (C) Executive’s right to have the Company pay
or provide such reimbursements and in-kind benefits may not be liquidated or exchanged for any other benefit.

 

(v)         For
purposes of Code Section 409A, Executive’s right to receive any installment payments shall be treated as a right to receive
a series of separate and distinct payments.  Whenever a payment under this Agreement specifies a payment period with reference
to a number of days (for example, “payment shall be made within thirty (30) days following the date of termination”),
the actual date of payment within the specified period shall be within the sole discretion of the Company. In no event may Executive,
directly or indirectly, designate the calendar year of any payment to be made under this Agreement, to the extent such payment
is subject to Code Section 409A.

 

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(j)   Notice. For the purpose of this
Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been
duly given when delivered by hand or overnight courier or three days after it has been mailed by United States registered mail,
return receipt requested, postage prepaid, addressed to the respective addresses set forth below in this Agreement, or to such
other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

 

If to the Company:

 

c/o APX Group, Inc.

4931 North 300 West

Provo, Utah 84604

Attention: General Counsel

 

with a copy (which shall not constitute notice) to:

 

The Blackstone Group

345 Park Avenue

New York, New York 10154

Attention: Peter Wallace

 

and

 

Simpson Thacher & Bartlett LLP

425 Lexington Avenue,

New York, New York 10017

Attention: Gregory T. Grogan

 

If to Executive:

 

To the most recent address of Executive
set forth in the personnel records of the Company.

 

(k)     Executive Representation. Executive
hereby represents to the Company that the execution and delivery of this Agreement by Executive and the Company and the performance
by Executive of Executive’s duties hereunder shall not constitute a breach of the terms of any employment agreement or other
agreement or written policy to which Executive is a party or otherwise bound. Executive hereby further represents that he is not
subject to any restrictions on his ability to solicit, hire or engage any employee or other service-provider. Executive agrees
that the Company is relying on the foregoing representations in entering into this Agreement and related equity-based award agreements.

 

    	16

    	 

    

  

(l)    Withholding Taxes. The Company
may withhold from any amounts payable under this Agreement such Federal, state and local taxes as may be required to be withheld
pursuant to any applicable law or regulation.

 

(m)   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.

 

    	17

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
duly executed this Agreement as of the day and year first above written.

 

	 	APX GROUP, INC.
	 	 
	 	/s/ Patrick Kelliher	 
	 	By: Patrick Kelliher
	 	Title: Chief Accounting Officer
	 	 
	 	EXECUTIVE
	 	 
	 	/s/ Todd Pedersen	 
	 	Todd Pedersen

 

Solely for the purposes of Section 1 of the Agreement:

 

	 	313 ACQUISITION LLC
	 	 
	 	/s/ Dale Gerard	 
	 	By: Dale Gerard
	 	Title: Vice President of Finance and Treasurer

 

    	 

    	 

    

 

Exhibit I

 

RELEASE AND WAIVER OF CLAIMS

 

This Release and Waiver of Claims (“Release”)
is entered into and delivered to APX Group, Inc. (the “Company”) as of this [ ] day of _, 201[_], by Todd Pedersen
(the “Executive”). The Executive agrees as follows:

 

1.          The
employment relationship between the Executive and the Company and its subsidiaries and affiliates, as applicable, terminated on
the [●] day of _______, 201[_] (the “Termination Date”) pursuant to Section [__] of the Employment Agreement
between the Company and Executive dated August 7, 2014 (“Employment Agreement”).

 

2.          In
consideration of the payments, rights and benefits provided for in Sections 5(d)(ii)(B) and 5(d)(ii)(C) of the Employment Agreement
(collectively, as applicable, the “Separation Terms”) and this Release, the sufficiency of which the Executive
hereby acknowledges, the Executive, on behalf of himself and his agents, representatives, attorneys, administrators, heirs, executors
and assigns (collectively, the “Employee Releasing Parties”), hereby releases and forever discharges the Company
Released Parties (as defined below), from all claims, charges, causes of action, obligations, expenses, damages of any kind (including
attorneys fees and costs actually incurred) or demands, in law or in equity, whether known or unknown, which may have existed or
which may now exist from the beginning of time to the date of this Release, arising from or relating to Executive’s employment
or termination from employment with the Company or otherwise, including a release of any rights or claims the Executive may have
under Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967,
as amended (“ADEA”); the Older Workers Benefit Protection Act; the Americans with Disabilities Act of 1990;
the Rehabilitation Act of 1973; the Family and Medical Leave Act of 1993; Section 1981 of the Civil Rights Act of 1866; Section
1985(3) of the Civil Rights Act of 1871; the Employee Retirement Income Security Act of 1974; the Fair Labor Standards Act; any
other federal, state or local laws against discrimination; or any other federal, state, or local statute, regulation or common
law relating to employment, wages, hours, or any other terms and conditions of employment. This includes a release by the Executive
of any and all claims or rights arising under contract (whether written or oral, express or implied), covenant, public policy,
tort or otherwise. For purposes hereof, “Company Released Parties” shall mean the Company and any of its past or present
employees, agents, insurers, attorneys, administrators, officials, directors, shareholders, divisions, parents, members, subsidiaries,
affiliates, predecessors, successors, employee benefit plans, and the sponsors, fiduciaries, or administrators of the Company’s
employee benefit plans.

 

    	 

    	 

    

 

3.          The
Executive acknowledges that the Executive is waiving and releasing rights that the Executive may have under the ADEA and other
federal, state and local statutes contract and the common law and that this Release is knowing and voluntary. The Executive and
the Company agree that this Release does not apply to any rights or claims that may arise after the date of execution by Executive
of this Release. The Executive acknowledges that the consideration given for this Release is in addition to anything of value to
which the Executive is already entitled. The Executive further acknowledges that the Executive has been advised by this writing
that: (i) the Executive should consult with an attorney prior to executing
this Release; (ii) the Executive has up to twenty-one (21) days within which to consider this Release, although the Executive may,
at the Executive’s discretion, sign and return this Release at an earlier time, in which case the Executive waives all rights
to the balance of this twenty-one (21) day review period; and (iii) for a period of 7 days following the execution of this Release
in duplicate originals, the Executive may revoke this Release in a writing delivered to the Chairman of the Board of Directors
of the Company, and this Release shall not become effective or enforceable until the revocation period has expired.

 

4.          This
Release does not release the Company Released Parties from (i) any obligations due to the Executive under the Separation Terms,
(ii) any rights Executive has to indemnification by the Company and to directors and officers liability insurance coverage, (iii)
any vested rights the Executive has under the Company’s employee pension benefit and group healthcare benefit plans as a
result of Executive’s actual service with the Company, (iv) any fully vested and nonforfeitable rights of the Executive as
a shareholder or member of the Company or its affiliates, (v) any rights of the Executive pursuant to any equity or incentive award
agreement with the Company, or (vi) any rights which cannot be waived by an employee under applicable law.

 

5.          The
Executive represents and warrants that he has not filed any action,
complaint, charge, grievance, arbitration or similar proceeding against the Company Released Parties.

 

6.          This
Release is not an admission by the Company Released Parties or the Employee Releasing Parties of any wrongdoing, liability or violation
of law.

 

7.          The
Executive shall continue to be bound by the restrictive covenants contained in the Employment Agreement.

 

8.          This
Release shall be governed by and construed in accordance with the laws of the State of New York, without reference
to the principles of conflict of laws.

 

9.          Each
of the sections contained in this Release shall be enforceable independently of every other section in this Release, and the invalidity
or unenforceability of any section shall not invalidate or render unenforceable any other section contained in this Release.

 

10.         The
Executive acknowledges that the Executive has carefully read and understands this Release, that the Executive has the right to
consult an attorney with respect to its provisions and that this Release has been entered into knowingly and voluntarily. The Executive
acknowledges that no representation, statement, promise, inducement, threat or suggestion has been made by any of the Company Released
Parties to influence the Executive to sign this Release except such statements as are expressly set forth herein or in the Employment
Agreement.

 

    	2

    	 

    

 

Executive has executed this
Release as of the day and year first written above.

 

	 	EXECUTIVE
	 	 
	 	 
	 	Todd PedersenEX-4.4

 Exhibit 4.4 

AOL INC. 
 2010 STOCK
INCENTIVE PLAN 
 (Amended and Restated Effective as of March 27, 2014) 

 

	1.	Purpose of the Plan 

 The purpose of the Plan is to aid the Company and its
Affiliates in recruiting and retaining employees, directors and advisors and to motivate such employees, directors and advisors to exert their best efforts on behalf of the Company and its Affiliates by providing incentives through the granting of
Awards. The Company expects that it will benefit from the added interest which such employees, directors and advisors will have in the welfare of the Company as a result of their proprietary interest in the Company’s success. 

 

	2.	Definitions 

 The following capitalized terms used in the Plan have the respective
meanings set forth in this Section: 
 (a) “Act” means The Securities Exchange Act of 1934, as amended, or
any successor thereto. 
 (b) “Affiliate” means any entity that is treated as a subsidiary or a parent of the Company for
purposes of the Securities Act of 1933, as amended (the “Act”) and the rules and regulations promulgated thereunder. Under such rules and as applied to the Company, “parent” is defined as a person controlling the Company
directly, or indirectly through one or more intermediates and “subsidiary” is defined as a person controlled by the Company directly, or indirectly through one or more intermediates. Any such entity must also be an entity that is
consolidated with the Company for financial reporting purposes or any other entity designated by the Board in which the Company has a direct or indirect equity interest of at least twenty percent (20%), measured by reference to vote or value. 

(c) “Assumed Plans” means each of the AOL Inc. Long-Term Incentive Plan for the Employees of the HuffingtonPost Media Group,
as amended and restated effective March 7, 2011; the AOL Inc. 2013 Adap.tv Acquisition Stock Incentive Plan, as amended and restated effective September 5, 2013; and the AOL Inc. 2014 Gravity Acquisition Stock Incentive Plan, as amended
and restated, effective January 23, 2014. 
 (d) “Award” means an Option, Stock Appreciation Right, award of
Restricted Stock, Restricted Stock Unit, Other Stock-Based Award or Converted Award granted pursuant to the Plan. 
 (e)
“Board” means the Board of Directors of the Company. 
 (f) “Change in Control” means the occurrence of
any of the following events: 
 (i) any “Person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Act
(other than the Company or any company owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company) becomes the “Beneficial Owner” within the meaning of
Rule 13d-3 promulgated under the Act of 30% or more of the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors; excluding, however, any circumstance in which such
beneficial ownership resulted from any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company or by any corporation controlling, controlled by, or under common control with, the Company; 

(ii) a change in the composition of the Board since the Effective Date, such that the individuals who, as of such date,
constituted the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of such Board; provided that any individual who becomes a director of the Company subsequent to the Effective Date whose election, or
nomination for election by the Company’s stockholders, was approved by the vote of at least a majority of the directors then comprising the 

 
Incumbent Board shall be deemed a member of the Incumbent Board; and provided further, that any individual who was initially elected as a director of the Company as a result of an actual or
threatened election contest, as such terms are used in Rule 14a-12 of Regulation 14A promulgated under the Act, or any other actual or threatened solicitation of proxies or consents by or on behalf of any person or entity other than the Board shall
not be deemed a member of the Incumbent Board; 
 (iii) a reorganization, recapitalization, merger or consolidation (a
“Corporate Transaction”) involving the Company, unless securities representing 60% or more of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the Company or the
corporation resulting from such Corporate Transaction (or the parent of such corporation) are held subsequent to such transaction by the person or persons who were the beneficial holders of the outstanding voting securities entitled to vote
generally in the election of directors of the Company immediately prior to such Corporate Transaction, in substantially the same proportions as their ownership immediately prior to such Corporate Transaction; or 

(iv) the sale, transfer or other disposition of all or substantially all of the assets of the Company. 

(g) “Code” means The Internal Revenue Code of 1986, as amended, or any successor thereto. References to a particular section
of the Code include references to regulations and rulings thereunder and to successor provisions. 
 (h) “Committee” means
the Compensation Committee of the Board or its successor, or such other committee of the Board to which the Board has delegated power to act under or pursuant to the provisions of the Plan or a subcommittee of the Compensation Committee
(or such other committee) established by the Compensation Committee (or such other committee). 
 (i) “Company” means
AOL Inc., a Delaware corporation, and it successors. 
 (j) “Effective Date” means the effective date the Plan, as amended
and restated hereby, was adopted by the Board, which date was March 27, 2014. 
 (k) “Employment” means (i) a
Participant’s employment if the Participant is an employee of the Company or any of its Affiliates, (ii) a Participant’s services as a non-employee director, if the Participant is a non-employee member of the Board or the board of
directors of an Affiliate or (iii) a Participant’s services as a consultant or advisor, if the Participant is a consultant or advisor to the Company or any of its Affiliates; provided, however that unless otherwise determined by the
Committee, a change in a Participant’s status from employee to non-employee (other than a director of the Company or an Affiliate) shall constitute a termination of employment hereunder. 

(l) “Fair Market Value” means, on a given date, (i) if there should be a public market for the Shares on such date, the
closing sale price of the Shares on the New York Stock Exchange (“NYSE”) Composite Tape, or, if the Shares are listed or admitted on another national securities exchange or national market system on which the average daily trading
volume of the Shares is greater, including without limitation the Nasdaq Global Market or The Nasdaq Capital Market of The Nasdaq Stock Market (the “NASDAQ”), the closing sales price per Share (or the average of the per Share closing bid
price and per Share closing asked price on such date, if no sales were reported) on such other national securities exchange or national market system, including the NASDAQ, or, if no sale of Shares shall have been reported on the NYSE Composite Tape
or quoted on another national securities exchange or national market system, including the NASDAQ, on such date, then the immediately preceding date on which sales of the Shares have been so reported or quoted shall be used, and (ii) if there
should not be a public market for the Shares on such date, the Fair Market Value shall be the value established by the Committee in good faith. 

(m) “ISO” means an Option that is also an incentive stock option granted pursuant to Section 6(d). 

(n) “OIBDA” has the meaning set forth in Section 10(b). 

  
 2 

 (o) “Option” means a stock option granted pursuant to Section 6. 

(p) “Option Price” means the price for which a Share can be purchased upon exercise of an Option, as determined pursuant to
Section 6(a). 
 (q) “Other Stock-Based Awards” means awards granted pursuant to Section 10. 

(r) “Participant” means an employee, director, consultant or advisor of the Company or an Affiliate who is selected by the
Committee to participate in the Plan, and upon his or her death, his or her successors, heirs, executors and administrators, as the case may be. A consultant or advisor may only be eligible to be selected to become a Participant if such person is a
natural person providing bona fide services to the Company or an Affiliate and such services are not performed in connection with the offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain
a market for the Company’s securities. A prospective employee of the Company or an Affiliate may be granted an Award so long as the grant date does not occur prior to the date that such person commences employment or the performance of services
for the Company or an Affiliate. 
 (s) “Performance-Based Awards” means certain Other Stock-Based Awards granted pursuant
to Section 10(b). 
 (t) “Plan” means the AOL Inc. 2010 Stock Incentive Plan, as amended from time to time. 

(u) “Restricted Stock” means any Share granted under Section 8. 

(v) “Restricted Stock Unit” means an Award granted to a Participant under Section 9. 

(w) “Section 409A” means Section 409A of the Code and the Department of Treasury regulations and other interpretative
guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Effective Date. 

(x) “Share Authorization” has the meaning set forth in Section 3. 

(y) “Shares” means shares of common stock of the Company, $.01 par value per share. 

(z) “Stock Appreciation Right” means a stock appreciation right granted pursuant to Section 7. 

(aa) “Subsidiary” means a subsidiary corporation, as defined in Section 424(f) of the Code (or any successor section
thereto), of the Company. 
 (bb) “Substitute Award” means an Award granted under Section 11(b); provided, however,
that in no event shall the term “Substitute Award” be construed to refer to or permit an award made in connection with the cancellation and repricing of an Option or Stock Appreciation Right. 

 

	3.	Shares Subject to the Plan; Individual Limits 

 (a) Share Authorization.
Subject to the adjustment as provided in Section 11, the aggregate number of Shares available for issuance under the Plan (the “Share Authorization”) shall be the sum of the following: (I) 31,638,331, (II) the number of
authorized but unissued Shares under the Assumed Plans as the Effective Date, which number is 2,776,786; and (III) the number of Shares deemed not issued under the Assumed Plans pursuant to paragraph (i) through (iii) of Section 3(b)
from and after the Effective Date. Shares that are issued pursuant to awards that are assumed, converted or substituted in connection with a merger, acquisition, reorganization or similar transaction shall not be treated as having been issued under
the Plan unless the terms of such assumption, conversion or substitution expressly so provide. For the avoidance of doubt, the Company shall be entitled to issue Shares under awards granted under the Assumed Plans that were outstanding on the
Effective Date and such issuances shall not reduce the foregoing. 

  
 3 

 (b) Return of Shares to the Share Authorization. The following Shares will be deemed not
issued and will again become available for issuance under the Plan: 
 (i) Shares that are potentially deliverable under an
Award or an award granted under an Assumed Plan that expires or is canceled, terminated, forfeited, settled in cash or otherwise settled without the delivery or issuance of Shares; 

(ii) Shares that are held back or tendered to cover the exercise price or purchase price of an Award or an award granted under
an Assumed Plan or the tax withholding obligations with respect to an Award or an award granted under an Assumed Plan; and 

(iii) Shares that were subject to a stock-settled Stock Appreciation Right and were not issued upon the net settlement or net
exercise of such Stock Appreciation Right. 
 For the avoidance of doubt, Shares repurchased on the open market with proceeds of an Option
exercise (or other payment by a Participant for the issuance of Shares under the terms of an Award agreement) will not be added back to or increase the Share Authorization. 

(c) Incentive Stock Option Limit. Notwithstanding Section 3(b), for purposes of determining the number of Shares available for
grant as Incentive Stock Options, such limit shall be equal to the sum of Section 3(a)(I) and 3(a)(II) only. 
 (d) Individual
Limits. The maximum number of Shares with respect to which Awards (other than Converted Awards) may be granted during a calendar year to any Participant shall be 2,600,000. The grant limit under the preceding sentence shall apply to an Award
other than an Option or Stock Appreciation Right only if the Award is intended to be “performance-based” as that term is used in Section 162(m) of the Code. 

(e) Source of Shares. The Shares to be issued pursuant to Awards may be authorized but unissued Shares or treasury Shares. 

 

	4.	Administration 

 (a) The Plan shall be administered by the Committee, which may
delegate its duties and powers in whole or in part to any subcommittee thereof consisting solely of at least two individuals who are intended to qualify as “independent directors” within the meaning of the NYSE listed company rules,
“non-employee directors” within the meaning of Rule 16b-3 under the Act (or any successor rule thereto) and, to the extent required by Section 162(m) of the Code (or any successor section thereto), “outside directors” within
the meaning thereof. In addition, the Committee may delegate the authority to grant Awards under the Plan to any employee or group of employees of the Company or an Affiliate; provided that such grants are consistent with guidelines established by
the Committee from time to time. 
 (b) The Committee shall have the full power and authority to make, and establish the terms and
conditions of, any Award to any person eligible to be a Participant, consistent with the provisions of the Plan, and to amend or waive any such terms and conditions at any time (including without limitation, accelerating or waiving any vesting
conditions). 
 (c) The Committee is authorized to interpret the Plan, to establish, amend and rescind any rules and regulations relating to
the Plan, and to make any other determinations that it deems necessary or desirable for the administration of the Plan, and may delegate such authority, as it deems appropriate. The Committee may correct any defect or supply any omission or
reconcile any inconsistency in the Plan in the manner and to the extent the Committee deems necessary or desirable. Any decision of the Committee in the interpretation and administration of the Plan, as described herein, shall lie within its sole
and absolute discretion and shall be final, conclusive and binding on all parties concerned (including, but not limited to, Participants and their beneficiaries or successors). 

  
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 (d) The Committee shall require payment of any amount it may determine to be necessary to
withhold for federal, state, local or other taxes as a result of the exercise, grant or vesting of an Award. The Committee shall have the right to withhold from any payment required to be made pursuant to the exercise, grant or vesting of an Award
an amount sufficient to satisfy any federal, state, local or other taxes, as set forth in further detail in the Award agreement. Unless the Committee specifies otherwise, the Participant may elect to pay a portion or all of such withholding taxes by
(a) delivery of Shares or (b) having Shares withheld by the Company with an aggregate Fair Market Value no greater than the Participant’s minimum statutory withholding tax liability from those Shares that would have otherwise been
received by the Participant. 
  

	5.	Limitations 

 (a) No Award may be granted under the Plan on or after the tenth
anniversary of the Effective Date, unless the term of the Plan is extended beyond such date by stockholder approval, but Awards granted prior to such tenth anniversary may extend beyond that date. The Plan will remain in effect with respect to
outstanding Awards until no Awards remain outstanding. 
 (b) Notwithstanding any provision herein to the contrary, the repricing of an
Option or Stock Appreciation Right, once granted hereunder, is prohibited without prior approval of the Company’s stockholders. For this purpose, a “repricing” means any of the following (or any other action that has the same effect
as any of the following): (i) changing the terms of an Option or Stock Appreciation Right to lower its exercise price; (ii) any other action that is treated as a “repricing” under generally accepted accounting principles; and
(iii) repurchasing for cash or canceling an Option or Stock Appreciation Right at a time when its exercise price is greater than the Fair Market Value of the underlying Shares in exchange for another Award, unless the cancellation and exchange
occurs in connection with a change in capitalization or similar change permitted under Section 11(a) below. Such cancellation and exchange would be considered a “repricing” regardless of whether it is treated as a
“repricing” under generally accepted accounting principles and regardless of whether it is voluntary on the part of the Participant. 

(c) With respect to any Awards, other than Awards granted on a discretionary basis for any extraordinary duties or services above those
generally performed by other members of the Board, granted to a Participant who is a non-employee member of the Board at the time of grant, such Awards shall be made pursuant to formulas established by the Board in advance of such grant. Any such
Awards shall be made at the time such a Participant first becomes a member of the Board and, thereafter, on an annual basis at or following the annual meeting of stockholders. Such formulas may include any one or more of the following: (i) a
fixed number of Options or Stock Appreciation Rights, (ii) a fixed number of Shares of Restricted Stock or a number of Shares of Restricted Stock determined by reference to a fixed dollar amount (calculated based on the Fair Market Value of a
Share on the date of grant), and (iii) Restricted Stock Units or Other Stock-Based Awards determined either by reference to a fixed number of Shares or to a fixed dollar amount (calculated based on the Fair Market Value of a Share on the
date of grant). 
  

	6.	Terms and Conditions of Options 

 Options granted under the Plan shall be, as
determined by the Committee, nonqualified or incentive stock options for federal income tax purposes, as evidenced by the related Award agreements, and shall be subject to the foregoing and the following terms and conditions and to such other terms
and conditions, not inconsistent therewith, as the Committee shall determine, and as evidenced by the related Award agreement: 
 (a)
Option Price. The Option Price per Share shall be determined by the Committee, but shall not be less than 100% of the Fair Market Value of a Share on the date an Option is granted. 

(b) Exercisability. Options granted under the Plan shall be exercisable at such time and upon such terms and conditions as may be
determined by the Committee, but in no event shall an Option be exercisable more than ten years after the date it is granted, except as may be provided pursuant to Section 16. 

  
 5 

 (c) Exercise of Options. Except as otherwise provided in the Plan or in an Award
agreement, an Option may be exercised for all, or from time to time any part, of the Shares for which it is then exercisable. An Option may not be exercised for a fraction of a Share. For purposes of this Section 6, the exercise date of an
Option shall be the date a notice of exercise is received by the Company, together with provision for payment of the full purchase price in accordance with this Section 6(c). The purchase price for the Shares as to which an Option is exercised
shall be paid to the Company, as designated by the Committee, pursuant to one or more of the following methods: (i) in cash or its equivalent (e.g., by check); (ii) in Shares having a Fair Market Value equal to the aggregate Option
Price for the Shares being purchased and satisfying such other requirements as may be imposed by the Committee; (iii) partly in cash and partly in such Shares or (iv) if there is a public market for the Shares at such time, through the
delivery of irrevocable instructions to a broker to sell Shares obtained upon the exercise of the Option and to deliver promptly to the Company an amount out of the proceeds of such sale equal to the aggregate Option Price for the Shares being
purchased and any applicable withholding taxes. No Participant shall have any rights to dividends or other rights of a stockholder with respect to Shares subject to an Option until the Shares are issued to the Participant. Shares purchased upon the
exercise of an Option shall be issued to the Participant as soon as practicable following the effective date on which the Option is exercised. 

(d) ISOs. The Committee may grant Options under the Plan that are intended to be ISOs. Such ISOs shall comply with the requirements of
Section 422 of the Code (or any successor section thereto). An ISO may only be granted to a Participant who is an employee of the Company or a Subsidiary. No ISO may be granted to any Participant who, at the time of such grant, owns more than
ten percent of the total combined voting power of all classes of stock of the Company or of any Subsidiary, unless (i) the Option Price for such ISO is at least 110% of the Fair Market Value of a Share on the date the ISO is granted and
(ii) the date on which such ISO terminates is a date not later than the day preceding the fifth anniversary of the date on which the ISO is granted. Any Participant who disposes of Shares acquired upon the exercise of an ISO either
(i) within two years after the date of grant of such ISO or (ii) within one year after the transfer of such Shares to the Participant, shall notify the Company of such disposition and of the amount realized upon such disposition. All
Options granted under the Plan are intended to be nonqualified stock options, unless the applicable Award agreement expressly states that the Option is intended to be an ISO. If an Option is intended to be an ISO, and if for any reason such Option
(or portion thereof) shall not qualify as an ISO, then, to the extent of such nonqualification, such Option (or portion thereof) shall be regarded as a nonqualified stock option granted under the Plan; provided that such Option (or portion thereof)
otherwise complies with the Plan’s requirements relating to nonqualified stock options. In no event shall any member of the Committee, the Company or any of its Affiliates (or their respective employees, officers or directors) have any
liability to any Participant (or any other person) due to the failure of an Option to qualify for any reason as an ISO. 
 (e)
Attestation. Wherever in the Plan or any agreement evidencing an Award, a Participant is permitted to pay the exercise price of an Option or taxes relating to the exercise of an Option by delivering Shares, the Participant may, subject to
procedures satisfactory to the Committee, satisfy such delivery requirement by presenting proof of beneficial ownership of such Shares, in which case the Company shall treat the Option as exercised without further payment and/or shall withhold such
number of Shares from the Shares acquired by the exercise of the Option, as appropriate. 
  

	7.	Terms and Conditions of Stock Appreciation Rights 

 (a) Grants. The
Committee may grant (i) a Stock Appreciation Right independent of an Option or (ii) a Stock Appreciation Right in connection with an Option, or a portion thereof. A Stock Appreciation Right granted pursuant to clause (ii) of the
preceding sentence (A) may be granted at the time the related Option is granted or at any time prior to the exercise or cancellation of the related Option, (B) shall cover the same number of Shares covered by the Option (or such lesser
number of Shares as the Committee may determine) and (C) shall be subject to the same terms and conditions as such Option except for such additional limitations as are contemplated by this Section 7 (or such additional limitations as may
be included in an Award agreement). 
 (b) Terms. The exercise price per Share of a Stock Appreciation Right shall be an amount
determined by the Committee but in no event shall such amount be less than the Fair Market Value of a Share on the date the Stock Appreciation Right is granted, and in the case of a Stock Appreciation Right granted in conjunction with an Option, or
a portion thereof, the exercise price may not be less than the Option Price of the related Option. Each Stock Appreciation Right granted independent of an Option shall entitle a Participant upon exercise to an amount equal to (i) the excess of
(A) the Fair Market Value on the exercise date of one Share over (B) the exercise price per Share, times (ii) the number of Shares covered by the Stock Appreciation Right that are being exercised.

  
 6 

 
Each Stock Appreciation Right granted in conjunction with an Option, or a portion thereof, shall entitle a Participant to surrender to the Company the unexercised Option, or any portion thereof,
and to receive from the Company in exchange therefor an amount equal to (i) the excess of (A) the Fair Market Value on the exercise date of one Share over (B) the Option Price per Share, times (ii) the number of Shares covered by
the Option, or portion thereof, which is surrendered. Payment shall be made in Shares or in cash, or partly in Shares and partly in cash (any such Shares valued at such Fair Market Value), all as shall be determined by the Committee. Stock
Appreciation Rights may be exercised from time to time upon actual receipt by the Company of written notice of exercise stating the number of Shares with respect to which the Stock Appreciation Right is being exercised. The date a notice of exercise
is received by the Company shall be the exercise date. No fractional Shares will be issued in payment for Stock Appreciation Rights, but instead cash will be paid for a fraction or, if the Committee should so determine, the number of Shares will be
rounded downward to the next whole Share. No Participant shall have any rights to dividends or other rights of a stockholder with respect to Shares covered by Stock Appreciation Rights until the Shares are issued to the Participant. 

(c) Limitations. The Committee may impose, in its discretion, such conditions upon the exercisability of Stock Appreciation Rights as
it may deem fit, but in no event shall a Stock Appreciation Right be exercisable more than ten years after the date it is granted, except as may be provided pursuant to Section 16. 

 

	8.	Restricted Stock 

 (a) Grant. Subject to the provisions of the Plan, the
Committee shall determine the number of Shares of Restricted Stock to be granted to each Participant, the duration of the period during which, and the conditions, if any, under which, the Restricted Stock may be forfeited to the Company, and the
other terms and conditions of such Awards. 
 (b) Transfer Restrictions. Shares of Restricted Stock may not be sold, assigned,
transferred, pledged or otherwise encumbered, except as provided in the Plan or the applicable Award agreement. Shares of Restricted Stock may be evidenced in such manner as the Committee shall determine in its sole discretion. If certificates
representing Shares of Restricted Stock are registered in the name of the applicable Participant, the Company may, at its discretion, retain physical possession of such certificates until such time as all applicable restrictions lapse. 

(c) Dividends. Dividends paid on any Shares of Restricted Stock may be paid directly to the Participant, withheld by the Company
subject to vesting of the Restricted Shares pursuant to the terms of the applicable Award agreement, or may be reinvested in additional Shares of Restricted Stock, as determined by the Committee in its sole discretion. 

(d) Performance-Based Grants. Notwithstanding anything to the contrary herein, certain Shares of Restricted Stock granted under this
Section 8 may, at the discretion of the Committee, be granted in a manner which is intended to be deductible by the Company under Section 162(m) of the Code (or any successor section thereto). The restrictions applicable to such Restricted
Stock shall lapse based wholly or partially on the attainment of written performance goals approved by the Committee for a performance period established by the Committee (i) while the outcome for that performance period is substantially
uncertain and (ii) no more than 90 days after the commencement of the performance period to which the performance goal relates or, if less, the number of days which is equal to 25 percent of the relevant performance period. The performance
goals, which must be objective, shall be based upon one or more of the criteria set forth in Section 10(b) below. The Committee shall determine whether, with respect to a performance period, the applicable performance goals have been met with
respect to a given Participant and, if they have, shall so certify prior to the release of the restrictions on the Shares. No such restrictions shall lapse for such performance period until such certification is made by the Committee. 

 

	9.	Restricted Stock Units 

 (a) Grant. Subject to the provisions of the Plan,
Restricted Stock Units may be granted to Participants in such amounts and upon such terms, and at any time and from time to time, as shall be determined by the Committee. Each grant of Restricted Stock Units shall be evidenced by an Award agreement
that shall specify the applicable restrictions, the number of Restricted Stock Units granted, and such other provisions as the Committee shall determine. 

  
 7 

 (b) Other Restrictions. The Committee shall impose such other conditions and/or
restrictions on any Restricted Stock Units and/or the Shares issuable upon the settlement of Restricted Stock Units granted pursuant to the Plan as it may deem advisable including, without limitation, a requirement that Participants pay a stipulated
purchase price for each Restricted Stock Unit, time-based restrictions requiring a minimum period of service as a condition of settlement of any or all Restricted Stock Units, performance-based restrictions requiring the achievement of certain
performance goals (including but not limited to those set forth in Section 10(b) below) and/or restrictions under applicable laws or under the requirements of any stock exchange or market or holding requirements or sale restrictions placed on
any Shares issued by the Company upon vesting and in settlement of such Restricted Stock Units. 
 (c) Dividends and Other
Distributions. Shares underlying Restricted Stock Units shall be entitled to Dividend equivalents other distributions only to the extent provided by the Committee. 

(d) Performance-Based Grants. Notwithstanding anything to the contrary herein, certain Restricted Stock Units granted under this
Section 9 may, at the discretion of the Committee, be granted in a manner which is intended to be deductible by the Company under Section 162(m) of the Code (or any successor section thereto). The Restricted Stock Units shall vest based
wholly or partially on the attainment of written performance goals approved by the Committee for a performance period established by the Committee (i) while the outcome for that performance period is substantially uncertain and (ii) no
more than 90 days after the commencement of the performance period to which the performance goal relates or, if less, the number of days which is equal to 25 percent of the relevant performance period. The performance goals, which must be objective,
shall be based upon one or more of the criteria set forth in Section 10(b) below. The Committee shall determine whether, with respect to a performance period, the applicable performance goals have been met with respect to a given Participant
and, if they have, shall so certify prior to the release of the restrictions on the Shares. No Restricted Stock Units for such performance period shall vest until such certification is made by the Committee. 

 

	10.	Other Stock-Based Awards 

 (a) Generally. The Committee, in its sole
discretion, may grant or sell Awards of Shares and Awards that are valued in whole or in part by reference to, or are otherwise based on the Fair Market Value of, Shares, including, but not limited to, Shares awarded purely as a bonus and not
subject to any restrictions or conditions, Shares in payment of the amounts due under an incentive or performance plan sponsored or maintained by the Company or an Affiliate, performance units, free standing dividend equivalent units, stock
equivalent units, and deferred stock units. Such Other Stock-Based Awards shall be in such form, and dependent on such conditions, as the Committee shall determine, including, without limitation, the right to receive, or vest with respect to, one or
more Shares (or the equivalent cash value of such Shares) upon the completion of a specified period of service, the occurrence of an event and/or the attainment of performance objectives. Other Stock-Based Awards may be granted alone or in addition
to any other Awards granted under the Plan. Subject to the provisions of the Plan, the Committee shall determine the number of Shares to be awarded to a Participant under (or otherwise related to) such Other Stock-Based Awards; whether such Other
Stock-Based Awards shall be settled in cash, Shares or a combination of cash and Shares; and all other terms and conditions of such Awards (including, without limitation, the vesting provisions thereof and provisions ensuring that all Shares so
awarded and issued shall be fully paid and non-assessable). 
 (b) Performance-Based Awards. Notwithstanding anything to the contrary
herein, certain Other Stock-Based Awards granted under this Section 10 may be granted in a manner which is intended to be deductible by the Company under Section 162(m) of the Code (or any successor section thereto). A Participant’s
Performance-Based Award shall be determined based on the attainment of written performance goals approved by the Committee for a performance period established by the Committee (i) while the outcome for that performance period is substantially
uncertain and (ii) no more than 90 days after the commencement of the performance period to which the performance goal relates or, if less, the number of days which is equal to 25% of the relevant performance period. The performance goals,
which must be objective, shall be based upon one or more of the following criteria: (i) operating income before depreciation and amortization (“OIBDA”), including adjusted OIBDA; (ii) operating income (either before or after,
either or any combination of, interest, taxes, depreciation and/or amortization); (iii) earnings per share or in the aggregate; (iv) return on stockholders’ equity; (v) stock price; (vi) revenues or sales;
(vii) advertising revenue or sales; (viii) free cash flow; (ix) return on invested capital; (x) total stockholder return; 

  
 8 

 
(xi) net sales or revenue growth; (xii) return on assets; (xiii) return on capital; (xiv) return on sales; (xv) return on revenue; (xvi) operating cash flow;
(xvii) cash flow return on equity; (xviii) cash flow return on investment; (xix) earnings before or after taxes, interest, depreciation, and/or amortization; (xx) gross or operating margins; (xxi) productivity ratios;
(xxii) expense targets; (xxiii) margins; (xxiv) operating efficiency; (xxv) market share; (xxvi) working capital targets and change in working capital; (xxvii) economic value added (net operating profit after tax minus
the sum of capital multiplied by the cost of capital); (xxviii) reductions in expenses; (xxix) net economic value; (xxx) completion or progress on the achievement of significant transactions, acquisitions, divestitures, product
development and/or projects or processes; (xxxi) results of customer satisfaction surveys; (xxxii) product price; (xxxiii) achievement of product and/or service quality goals; and/or (xxxiv) credit rating. 

The foregoing criteria may relate to the Company, one or more of its affiliates or one or more of its or their divisions, units, departments
or functions or any combination of the foregoing, and may be applied on an absolute basis and/or be relative to one or more peer group companies or indices, and may be based upon a specified increase, positive result, maintenance of the status quo,
decrease or negative result, or any combination thereof, and may apply to all or a portion of the designated performance goal or goals, or any combination thereof, and financial metrics may be calculated on a pre-tax and/or after-tax basis, all as
the Committee shall determine. In addition, to the degree consistent with Section 162(m) of the Code (or any successor section thereto), the performance goals may be calculated without regard to extraordinary items as the Committee shall
determine. The Committee shall determine whether, with respect to a performance period, the applicable performance goals have been met with respect to a given Participant and, if they have, shall so certify and ascertain the amount of the applicable
Performance-Based Award. No Performance-Based Awards will be paid for such performance period until such certification is made by the Committee. The amount of the Performance-Based Award actually paid to a given Participant may be less than the
amount determined by the applicable performance goal formula, at the discretion of the Committee. The amount of the Performance-Based Award determined by the Committee for a performance period shall be paid to the Participant at such time as
determined by the Committee in its sole discretion after the end of such performance period; provided, however, that a Participant may, if and to the extent permitted by the Committee and consistent with the provisions of Section 162(m) of the
Code and Section 22 below, elect to defer payment of a Performance-Based Award. 
  

	11.	Adjustments Upon Certain Events 

 (a) Adjustments Upon Certain Events.
Notwithstanding any other provisions in the Plan to the contrary, the following provisions shall apply to all Awards granted under the Plan: 

(i) Generally. In the event of any change in the outstanding Shares (including, without limitation, the value thereof)
after the Effective Date by reason of any Share dividend or split, reorganization recapitalization, merger, consolidation, spin-off, combination or exchange of Shares or other corporate exchange, or any distribution to stockholders of Shares other
than regular cash dividends, or any transaction similar to the foregoing, the Committee in its sole discretion and without liability to any person shall make such substitution or adjustment, if any, as it deems to be equitable (subject to
Section 22), as to (i) the number or kind of Shares (or other securities or property) issued or reserved for issuance pursuant to the Plan or pursuant to outstanding Awards, (ii) the maximum number of Shares (or other securities or
property) for which Awards may be granted during a calendar year to any Participant, (iii) the Option Price or exercise price of any Stock Appreciation Right and/or (iv) any other affected terms of such Awards. 

(ii) Change in Control. In the event of a Change in Control after the Effective Date, the Committee may (subject to
Section 22), but shall not be obligated to, (A) accelerate, vest or cause the restrictions to lapse with respect to all or any portion of an Award, (B) cancel Awards for fair value (as determined in the sole discretion of the
Committee) which in the case of Options and Stock Appreciation Rights, may equal the excess, if any, of value of the consideration to be paid in the Change in Control transaction to holders of the same number of Shares subject to such Options or
Stock Appreciation Rights (or, if no consideration is paid in any such transaction, the Fair Market Value of the Shares subject to such Options or Stock Appreciation Rights) over the aggregate exercise price of such Options or Stock Appreciation
Rights, (C) provide for the issuance of substitute Awards that will substantially preserve the otherwise applicable terms of any affected Awards previously granted hereunder as determined by the Committee in its sole discretion, or
(D) provide that for a period of at least 30 days prior to the Change in 

  
 9 

 
Control, such Options or Stock Appreciation Rights shall be exercisable as to all Shares subject thereto and that upon the occurrence of the Change in Control, such Options or Stock Appreciation
Rights shall terminate and be of no further force and effect. The Committee shall neither be obligated to treat all Awards in the same manner under this Section 11(a)(ii) nor to take any action with respect to all Awards if it determines to
take action with respect to any Award under this Section 11(a)(ii). 
 (b) Substitute Awards. The Company, from time to time,
also may substitute or assume any outstanding award granted by the Company, any of its Affiliates or another company, whether in connection with a corporate transaction, such as a merger, combination, consolidation or acquisition of property or
stock or otherwise, by either: (A) granting an Award under the Plan in substitution of such award or (B) assuming such award as if it had been granted under the Plan if the terms of such assumed award could be applied to an Award granted
under the Plan. Such substitution or assumption will be permissible if the holder of the substituted or assumed award would have been eligible to be granted an Award under the Plan if the granting company had applied the rules of the Plan to such
grant. In the event the Company assumes an award pursuant to this Section 11(b), the terms and conditions of such award will remain unchanged (except that the exercise price and the number and nature of Shares issuable upon exercise of
any such option will be adjusted appropriately pursuant to Section 424(a) of the Code and Section 409A). In the event the Company elects to grant a new Option rather than assuming an existing option, such new Option may be granted with a
similarly adjusted Option Price. In the event the Company elects to grant a new Stock Appreciation Right rather than assuming an existing Stock Appreciation Right, such new Stock Appreciation Right may be granted with a similarly adjusted exercise
price. The number of Shares underlying Substitute Awards shall be counted against the aggregate number of Shares available for Awards under the Plan. 
  

	12.	No Right to Employment or Awards 

 The granting of an Award under the Plan shall
impose no obligation on the Company or any Affiliate to continue the Employment of a Participant and shall not lessen or affect the Company’s or Subsidiary’s right to terminate the Employment of such Participant. No Participant or other
person shall have any claim to be granted any Award, and there is no obligation for uniformity of treatment of Participants, or holders of Awards. The terms and conditions of Awards and the Committee’s determinations and interpretations with
respect thereto need not be the same with respect to each Participant (whether or not such Participants are similarly situated). 
  

	13.	Successors and Assigns 

 The Plan shall be binding on all successors and assigns
of the Company and a Participant, including without limitation, the estate of such Participant and the executor, administrator or trustee of such estate, or any receiver or trustee in bankruptcy or representative of the Participant’s creditors.

  

	14.	Nontransferability of Awards 

 Unless otherwise determined by the Committee (and
subject to the limitation that in no circumstances may an Award may be transferred by the Participant for consideration or value), an Award shall not be transferable or assignable by the Participant otherwise than by will or by the laws of descent
and distribution. An Award exercisable after the death of a Participant may be exercised by the legatees, personal representatives or distributees of the Participant. 
  

	15.	Amendments or Termination 

 The Board or the Committee may amend, alter or
discontinue the Plan, but no amendment, alteration or discontinuation shall be made, (a) without the approval of the stockholders of the Company (i) if such action would (except as is provided in Section 11 of the Plan) increase the
total number of Shares reserved for the purposes of the Plan or the maximum number of Shares for which Awards may be granted to any Participant, or (ii) if stockholder approval for such action is otherwise required by any applicable law or
regulation or the rules of the NYSE or any successor exchange or quotation system on which the Shares may be then listed or quoted or Section 162(m) of the Code (taking into consideration the exception provided by Treas. Reg. §
1.162-27(f)(iii)(4)), (b) without the consent of a Participant, if such action would materially diminish any of the rights of the Participant under any Award 

  
 10 

 
theretofore granted to such Participant under the Plan or (c) subject to Section 5(b), relating to repricing of Options or Stock Appreciation Rights, to permit such repricing; provided,
however, that the Committee may amend the Plan in such manner as it deems necessary to permit the granting of Awards meeting the requirements of the Code or other applicable laws. Without limiting the generality of the foregoing, to the extent
applicable, notwithstanding anything herein to the contrary, the Plan and Awards issued hereunder shall be interpreted in accordance with Section 409A. Notwithstanding any provision of the Plan to the contrary, in the event that the Committee
determines that any amounts payable hereunder will be taxable to a Participant under Section 409A, prior to payment to such Participant of such amount, the Company may (a) adopt such amendments to the Plan and Awards and appropriate
policies and procedures, including amendments and policies with retroactive effect, that the Committee determines necessary or appropriate to preserve the intended tax treatment of the benefits provided by the Plan and Awards hereunder and/or
(b) take such other actions as the Committee determines necessary or appropriate to avoid the imposition of an additional tax under Section 409A. 
  

	16.	International Participants 

 With respect to Participants who reside or work
outside the United States of America and who are not (and who are not expected to be) “covered employees” within the meaning of Section 162(m) of the Code, the Committee may, in its sole discretion, amend the terms of the Plan or
Awards in order to conform such terms with the requirements of local law or to obtain more favorable tax or other treatment for a Participant, the Company or an Affiliate. 
  

	17.	Other Benefit Plans 

 All Awards shall constitute a special incentive payment to
the Participant and shall not be taken into account in computing the amount of salary or compensation of the Participant for the purpose of determining any benefits under any pension, retirement, profit sharing, bonus, life insurance or other
benefit plan of the Company or under any agreement between the Company and the Participant, unless such plan or agreement specifically provides otherwise. 
  

	18.	Choice of Law 

 The Plan shall be governed by and construed in accordance with the
laws of the State of New York without regard to conflicts of laws, and except as otherwise provided in the pertinent Award agreement, any and all disputes between a Participant and the Company or any Affiliate relating to an Award shall be brought
only in a state or federal court of competent jurisdiction sitting in Manhattan, New York. 
  

	19.	Effectiveness of the Plan 

 The Plan, as amended and restated, shall be effective
as of the Effective Date on the date it is approved by the stockholders of the Company at the regularly scheduled meeting of the stockholders of the Company in 2014. 
  

	20.	Code Section 162(m) Approval 

 If so determined by the Committee, the
provisions of the Plan regarding Performance-Based Awards shall be disclosed and reapproved by stockholders no later than the first stockholder meeting that occurs in the fifth year following the year in which stockholders previously approved such
provisions, in each case in order for certain Awards granted after such time to be exempt from the deduction limitations of Section 162(m) of the Code. Nothing in this clause, however, shall affect the validity of Awards granted after such time
if such stockholder approval has not been obtained. 
  

	21.	Securities Law Compliance 

 (a) If the Committee deems it necessary to comply with
any applicable securities law, or the requirements of any securities exchange or other form of securities market upon which Shares may be listed, the Committee may impose any restriction on Shares acquired pursuant to Awards under the Plan as it may
deem 

  
 11 

 
advisable. All certificates for Shares delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee
may deem advisable under the rules, regulations and other requirements of the United States Securities and Exchange Commission, any securities exchange or other form of securities market upon which Shares are then listed, any applicable securities
law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. If so requested by the Company, the Participant shall make a written representation to the Company that he or
she will not sell or offer to sell any Shares unless a registration statement shall be in effect with respect to such Shares under the Securities Act of 1933, as amended, and any applicable state or foreign securities law or unless she or she shall
have furnished an opinion to the Company, in form and substance satisfactory to the Company, that such registration is not required. 
 (b)
If the Committee determines that the exercise, nonforfeitability of, or delivery of benefits pursuant to, any Award would violate any applicable provision of securities laws or the listing requirements of any securities exchange or other form of
securities market on which are listed any of the Company’s equity securities, then the Committee may postpone any such exercise, nonforfeitability or delivery, as applicable, but the Company shall use all reasonable efforts to cause such
exercise, nonforfeitability or delivery to comply with all such provisions at the earliest practicable date. 
  

	22.	Section 409A 

 (a) In General. The Plan is intended to be
administered in a manner consistent with the requirements, where applicable only, of Section 409A. Where reasonably possible and practicable, the Plan shall be administered in a manner to avoid the imposition on Participants of immediate tax
recognition and additional taxes pursuant to Section 409A. Notwithstanding the foregoing, neither the Company nor the Committee shall have any liability to any person in the event Section 409A applies to any Award in a manner that results
in adverse tax consequences for the Participant or any of his or her beneficiaries or transferees. 
 (b) Elective Deferrals. No
elective deferrals or re-deferrals of compensation (as defined under Section 409A) other than in regard to Restricted Stock Units granted under the Plan are permitted hereunder. 

(c) Applicable Requirements. To the extent an Award granted under the Plan is deemed to be “deferred compensation” subject to
Section 409A, the following rules shall apply to such Awards: 
 (i) Mandatory Deferrals. If the Company decides
that the payment of compensation under the Plan shall be deferred within the meaning of Section 409A, then at the grant of the Award to which such payment relates, the Company shall specify in the Award agreement the date(s) on which such
compensation will be paid. 
 (ii) Initial Deferral Elections. For Awards of Restricted Stock Units where the
Participant is given the opportunity to elect the timing and form of the payment of the underlying Shares at some future time once any requirements have been satisfied (e.g., retirement), the Participant must make his or her initial deferral
election for such Award in accordance with the requirements of Section 409A and Treas. Reg. § 1.409A-2. 
 (iii)
Subsequent Deferral Elections. To the extent the Company or Committee allows Participants to elect to re-defer (after an initial deferral election has become irrevocably effective) deferred compensation that is subject to Section 409A,
then the requirements of Treas. Reg. § 1.409A-2(b) must be met. Generally those requirements provide that: (1) such election will not take effect until at least 12 months after the date on which it is made; (2) in the case of an
election not related to a payment on account of disability, death, or an unforeseeable emergency, the payment with respect to which such election is made must be deferred for a period of not less than 5 years from the date such payment would
otherwise have been paid; and, (3) any election related to a payment at a specified time or pursuant to a fixed schedule (within the meaning of Treas. Reg. § 1.409A-3(a)(4)) must be made not less than 12 months before the date the payment
is scheduled to be paid. 

  
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(iv) Timing of Payments. Payment(s) of compensation that is subject to Section 409A shall only be made upon an event or at a time set forth in Treas. Reg. § 1.409A-3.
Generally, such events and times include: a Participant’s separation from service; a Participant’s becoming disabled; a Participant’s death; a time or a fixed schedule specified in the Plan (including an Award agreement); a change in
the ownership or effective control, or in the ownership of a substantial portion of the assets, of a corporation; or the occurrence of an unforeseeable emergency, in each case as defined and provided for under Section 409A. 

(v) Certain Delayed Payments. Notwithstanding the foregoing, to the extent an amount was intended to be paid such that
it would have qualified as a short-term deferral under Section 409A, then such payment may be delayed without causing such amount to be subject to Section 409A if the requirements of Treas. Reg. § 1.409A-1(b)(4)(ii) are met. 

(vi) Acceleration of Payment. Any payment made under the Plan to which Section 409A applies may not be accelerated,
except in accordance with Treas. Reg. §1.409A-3(j)(4). 
 (vii) Installment Payments. To the extent any amount
made under the Plan to which Section 409A applies is payable in two or more installments, each installment payment shall be treated as a separate and distinct payment for purposes of Section 409A. 

(d) Determining “Controlled Group”. In order to determine for purposes of Section 409A whether a Participant or eligible
individual is employed by a member of the Company’s controlled group of corporations under Section 414(b) of the Code (or by a member of a group of trades or businesses under common control with the Company under Section 414(c) of the
Code) and, therefore, whether the Shares that are or have been purchased by or awarded under the Plan to the Participant are shares of “service recipient” stock within the meaning of Section 409A: 

(i) In applying Sections 1563(a)(1), (2) and (3) of the Code for purposes of determining the Company’s
controlled group under Section 414(b) of the Code, the language “at least 50 percent” is to be used instead of “at least 80 percent” each place it appears in Sections 1563(a)(1), (2) and (3) of the Code; 

(ii) In applying Treas. Reg. § 1.414(c)-2 for purposes of determining trades or businesses under common control with the
Company for purposes of Section 414(c) of the Code, the language “at least 50 percent” is to be used instead of “at least 80 percent” each place it appears in Treas. Reg. § 1.414(c)-2; and 

(iii) Notwithstanding the above, to the extent that the Company finds that legitimate business criteria exist within the
meaning of Treas. Reg. § 1.409A-1(b)(5)(E)(1), then the language “at least 50 percent” in clauses (i) and (ii) above shall instead be “at least 20 percent.” 

(e) Specified Employees; Payment Delay. Notwithstanding anything above to the contrary, in the event that an amount that is subject to
Section 409A is to be paid under the Plan to a “specified employee” upon such employee’s “separation from service” (as those terms are defined under Section 409A), then such payment shall be made on the first day
of the seventh month following the month in which the separation from service occurred. 
  

	23.	Plan History 

 The Plan was originally adopted by the Company on November 20,
2009. The Board approved an amendment to the Plan on January 28, 2010 to remove the minimum vesting schedule for Restricted Stock and Other Stock-Based Awards. The Committee approved an amendment and restatement of the Plan on March 15,
2010 to (a) increase the number of Shares reserved for issuance pursuant to Awards from 11,308,831 Shares to 16,608,831 Shares and (b) provide for a limit of 7,800,000 on the number of Restricted Stock or Other Stock-Based Awards payable
in Shares, which amended and restated Plan was approved by stockholders on April 29, 2010. The Plan was further amended and restated following stockholder approval on June 14, 2012 to (a) increase the number of Shares

  
 13 

 
reserved for issuance pursuant to Awards by 5,200,000 Shares, (b) change the manner in which certain types of Awards under the Plan count against the number of Shares authorized for issuance
under the Plan, thereby eliminating the separate limit for Awards of Restricted Stock or Other Stock-Based Awards hereunder, (c) provide that the number of Shares underlying any Award settled in cash shall again be available for Awards under
the Plan, (d) provide additional performance criteria pursuant to which performance-based Awards may be granted under the Plan, (e) provide that Awards may be granted under the Plan for ten years from the date the Plan was first adopted by
the Board, and (f) make other clarifying and administrative amendments. 
 The Board approved an amendment and restatement of the Plan
effective as of March 27, 2014 to (a) increase the number of Shares reserved for issuance hereunder, (b) change the manner in which certain types of Awards under the Plan count against the number of Shares authorized for issuance
under the Plan, thereby treating all Awards under the Plan in the same manner, (c) provide that certain Shares underlying Awards shall again be available for Awards under the Plan, (d) provide expressly for the award of Restricted Stock
Units, (e) extend the term of the Plan until March 26, 2024 and (f) make other clarifying and administrative amendments. The amendment and restatement of the Plan in 2014 is subject to and contingent upon, the approval of the
stockholders of the Company, which approval is being sought at the 2014 Annual Meeting of Stockholders. 

  
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