Document:

Exhibit 10.51

Exhibit 10.51

FRIENDFINDER NETWORKS INC. 

STOCK OPTION AGREEMENT

STOCK OPTION AGREEMENT (this “Agreement”), dated as of ________ (the “Grant Date”), between FriendFinder Networks Inc., a Nevada corporation (the “Company”) and ________________ (“Participant”).

WHEREAS, Participant currently serves as a consultant and advisor to the Board of Directors of the Company; and

WHEREAS, the Company desires to grant to Participant an option to purchase shares of Common Stock, $0.01 par value per share, of the Company (“Common Stock”) in the amount, and subject to the terms and conditions, set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements herein contained, intending to be legally bound hereby, the parties hereto agree as follows:

1.

Grant of Option.  

(a)

The Company hereby grants to Participant an option (the “Option”) to purchase ________ shares (the “Shares”) of Common Stock at a per-Share purchase price equal to the per-Share price offered to the public at the time of an IPO (the “Exercise Price”).  The Company shall cause certificates for any Shares purchased pursuant to the exercise of any portion of this option to be delivered to Participant upon payment of the Exercise Price in full, all subject to the terms and conditions hereinafter set forth.  The Option granted hereby is a nonqualified stock option.

(b)

The Option granted to Participant pursuant to this Agreement is granted pursuant to the FriendFinder Networks Inc. 2008 Stock Option Plan (the “Plan”), a true and correct copy of which is attached hereto as Exhibit A.  The provisions of the Plan are incorporated herein by reference.  Unless otherwise defined in this Agreement, capitalized terms used in this Agreement shall have the meaning set forth in the Plan.

2.

Vesting.  

(a)

Subject to Section 2(b) below, this Option shall vest to the extent of twenty percent (20%) on the first anniversary of the date hereof and an additional twenty percent (20%) on each of the succeeding four anniversaries of the date hereof (each vesting date specified therein is hereafter referred to as a “Vesting Date”); provided, however, that the Participant may exercise the vested portion of the Option only after that date which is 18 months after the date of an IPO (such date being hereinafter called the “Effective Date”).  

(b)

(i)

Termination of Vesting in the Event of Death. In the event of Participant’s death during the term of this Option, the Option shall cease to vest with respect to any unvested shares as of the date of the Participant’s death.

(ii)

Acceleration of Vesting due to Change of Control.  In the event that during the term of this Option there occurs a Change of Control (as defined below), then the shares which are unvested at that time of such Change of Control shall immediately vest.  The term “Change of Control” shall mean: (a) the consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if persons who immediately prior to such merger, consolidation or other reorganization did not own 50% or more of the voting power of the Company own immediately after such merger, consolidation or other reorganization 50% or more of the voting power of the outstanding securities of each of (i) the continuing or surviving entity and (ii) any direct or indirect parent corporation of such continuing or surviving entity; (b) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors of the Company (together with any new directors whose election to such board or whose nomination for election by the stockholders of the Company was approved by a vote of a majority of the directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved), cease for any reason to constitute a majority of such Board of Directors then in office; (c) the sale, transfer or other disposition of all or substantially all of the Company’s assets; (d) any transaction as a result of which any person is the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the Company representing at least 50% of the total voting power represented by the Company’s then outstanding voting securities, or (e) the liquidation or dissolution of the Company or the adoption of a plan of liquidation or dissolution by the Company.  For purposes of this paragraph, the term “person” shall have the same meaning as when used 

in sections 13(d) and 14(d) of the Exchange Act but shall exclude (i) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a parent or subsidiary and (ii) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the common stock of the Company.  A transaction shall not constitute a Change of Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.

3.

Term and Termination.

(a)

This Option shall expire on the date that is ten (10) years from the Grant Date (the “Expiration Date”); provided, that in the event of Participant’s death this Option may be exercised, to the extent vested on the date of Participant’s death, by Participant’s Designated Beneficiary (or, if none has been effectively designated, by his or her executor, administrator or person to whom his or her rights under the Option shall pass by will or by the laws of descent and distribution) at any time prior to the earlier of (i) the date that is one year after death and (ii) the Expiration Date.

For purposes of this Agreement, “Employment” shall mean the Participant’s service as a consultant and advisor to the Company’s Board of Directors.

(b)

Nothing contained in this Agreement shall limit or be deemed to limit the Company’s rights to terminate the Participant’s Employment.  

4.

No Transfer of Option.  This Option may not be transferred by the Participant except by will or the laws of descent and distribution.  This Option may not be exercised during the Participant’s lifetime except by the Participant.  The term “transfer” shall include assign, dispose, pledge or hypothecate whether by operation of law or otherwise, or be made subject to sale under execution, attachment or similar process of this Option or any right or interest in this Option.  Any attempted transfer or other disposition of this Option contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon this Option, shall be null and void and without effect.

5.

Payment of Exercise Price and Tax Withholding.  On the date of the exercise of this Option, payment of the Exercise Price for the number of Shares with respect to which this Option is being exercised shall be made to the Company at the Company’s principal office, and shall be made at the option of the Participant (i) in cash or by personal or certified check, (ii) by delivery of Common Stock certificates (in negotiable form) representing shares of Common Stock (not subject to limitations on transfer) having a Fair Market Value equal to the aggregate Exercise Price of the shares of Common Stock with respect to which this Option is being exercised, (iii) through net exercise, using shares of Common Stock to be acquired upon exercise of this option, such shares of Common Stock being valued at their Fair Market Value on the date of exercise, or (iv) through such other form of consideration as is deemed acceptable by the Committee.  If the Participant does not make a choice as to the above, the exercise will be through net exercise using shares of Common Stock to be acquired upon exercise of this Option against payment of the exercise price and any withholding taxes due.  In addition and at the time of exercise, as a condition of delivery of the Common Stock, the Participant shall remit to the Company all required federal, state and local withholding tax amounts in the manner determined by the Committee.

6.

Investment Representation.  Upon the exercise of this Option at a time when there is not in effect a registration statement under the Securities Act of 1933, as amended, relating to the Shares subject to this Option, the Participant hereby represents and warrants, and by virtue of such exercise shall be deemed to represent and warrant, to the Company that such Shares shall be acquired for investment and not with a view to the distribution thereof, and not with any present intention of distributing the same, and the Participant shall provide the Company with such further representations and warranties as the Company may require in order to ensure compliance with applicable federal and state securities, blue sky and other laws.

7.

Limitations on Exercise of Option.  This Option shall not be exercisable, and no shares of Common Stock subject to this Option shall be purchased upon the exercise of this Option, unless and until the Company and the Participant shall have complied with all applicable federal or state registration, listing and qualification requirements and all other requirements of law or of any regulatory agencies having jurisdiction, unless the Committee has received evidence satisfactory to it that the Participant may acquire such shares pursuant to an exemption from registration under the applicable securities laws.  Any determination in this connection by the Committee shall be final, binding and conclusive.  The Company reserves the right to legend any certificate for shares of Common Stock, conditioning sales of such shares upon compliance with applicable federal and state securities laws and regulations.

8.

No Rights as Common Stockholder.  The Participant shall not be, nor shall a transferee of an Participant be, nor have any of the rights or privileges of, a holder of Common Stock in respect of any Shares purchasable upon the exercise of any part of this Option unless and until certificates representing such shares shall have been issued by the Company to such holder.  No adjustments shall be made, except as provided in Section 9 below, nor shall the Company have any obligation to issue any dividends or otherwise afford any rights to which shares of Common Stock are entitled, until the date of the issuance to the Participant of such certificates.

9.

Adjustments.  If at any time while this Option is outstanding, the number of outstanding shares of Common Stock is changed by reason of a reorganization, recapitalization, Common Stock split or any of the other events described in Section 9 of the Plan, the number and kind of shares of Common Stock subject to this Option, and/or the exercise price of such shares, shall be adjusted in accordance with Section 9 of the Plan.

10.

Notices.  Any notice hereunder by the Participant shall be given to the Company in writing and such notice shall be deemed duly given only upon receipt thereof at the Company’s offices.  Any notice hereunder by the Company shall be given to the Participant in writing and such notice shall be deemed duly given only upon receipt thereof at such address as the Participant may have on file with the Company.

11.

Terms of Plan.  This Agreement shall be subject to all of the terms and conditions of the Plan.  If there is any conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control.

12.

Construction.  The interpretation of this Agreement is vested in the Committee, and the Committee’s interpretation shall be final and conclusive.

13.

Governing Law.  This Agreement shall be construed and enforced in accordance with the laws of the State of Florida, without giving effect to the choice of law principles thereof.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

IN WITNESS WHEREOF, the Company and Participant have caused this Stock Option Agreement to be duly executed on the day and year first above written.

FRIENDFINDER NETWORKS INC. 

By:                                                            

Name:

Title: 

                                                                 

[PARTICIPANT]

[Signature Page to Stock Option Agreement]

Exhibit A

FriendFinder Networks Inc. 2008 Stock Option Plan

PENTHOUSE MEDIA GROUP INC.

2008 STOCK OPTION PLAN

1.

Purpose of Plan.  This 2008 Stock Option Plan (the “Plan”) is designed to assist Penthouse Media Group Inc. (the “Company”) in attracting and retaining the services of Employees (as hereinafter defined), Non-Employee Directors (as hereinafter defined) and such consultants as may be designated and to provide them with an incentive and inducement to contribute fully to the further growth and development of the business of the Company and its subsidiaries.

2.

Legal Compliance.  It is the intent of the Plan that all options granted under it shall be either “Incentive Stock Options” (“ISOs”), as such term is defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or non-qualified stock options (“NQOs”); provided, however, ISOs shall be granted only to Employees of the Company.  An option shall be identified as an ISO or NQO in writing in the document or documents evidencing the grant of the option.  All options that are not so identified as ISOs are intended to be NQOs.  It is the further intent of the Plan that it conform in all respects with the requirements of Rule 16b-3 of the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended (“Rule 16b-3”).  To the extent that any aspect of the Plan or its administration shall at any time be viewed as inconsistent with the requirements of Rule 16b-3 or, in connection with ISOs, the Code, such aspect shall be deemed to be modified, deleted or otherwise changed as necessary to ensure continued compliance with such provisions.

3.

Definitions.  In addition to other definitions contained elsewhere in the Plan, as used in the Plan the following terms have the following meanings unless the context requires a different meaning:

(a)

“Board” means the Board of Directors of the Company.

(b)

“Code” means the Internal Revenue Code of 1986, as the same may from time to time be amended.

(c)

“Committee” means the committee referred to in Section 5 hereof.

(d)

“Common Stock” means the Common Stock of the Company.

(e)

“Designated Beneficiary” means the person(s) designated by an optionee to be entitled on his or her death to any remaining rights arising out of an option, such designation to be made in accordance with such regulations as the Committee or Board may establish.

(f)

“Employee” means any individual who is a common-law employee of the Company or any direct or indirect subsidiary thereof.

(g)

“Fair Market Value” means the closing price of the Common Stock on a national securities exchange on the date immediately preceeding the date of grant (the “Closing Price”) or if the Common Stock is not traded on a national securities exchange, the Closing Price on Nasdaq or any other automated quotation system, or if the Common Stock shall not be included in any automated quotation system, as determined by the Committee or the Board in good faith based on all relevant factors.

(h)

“Non-Employee Director” means a director who is not currently an officer of or employed by the Company or any of its majority-owned direct or indirect subsidiaries.

(i)

“Stock Options” means any stock options granted to an optionee under the Plan.

(j)

“Stock Option Agreement” means a stock option agreement entered into pursuant to the Plan.

4.

Stock Options; Stock Subject to Plan.

The stock to be issued upon exercise of Stock Options granted under the Plan shall consist of authorized but unissued shares, or of treasury shares, of Common Stock, as determined from time to time by the Board.  The maximum number of shares for which Stock Options may be granted under the Plan is 26,879,960 shares, subject to adjustment as provided in Section 9 of the Plan.  If any Stock Option granted under the Plan should expire or terminate for any reason whatsoever without having been exercised in full, the unpurchased shares shall become available for new option grants.

5.

Administration.

(a)

The Plan shall be administered by the Compensation Committee or, if such Committee is not appointed, then it shall be administered by the Board.  Options may be granted by the Board or the Committee.  For purposes of the Plan, the Board or its appointed Committee shall be referred to as the “Committee.”  The Committee, if any, shall be appointed by the Board and shall consist of not less than two members.  The Board shall establish the number of members to serve on the Committee, shall fill all vacancies or create new openings on the Committee, and may remove any member of the Committee at any time with or without cause.  The Committee shall select its own chairman and shall adopt, alter or repeal such rules and procedures as it may deem proper and shall hold its meetings at such times and places as it may determine.  The Committee shall keep minutes of its meetings and of actions taken by it without a meeting.  A majority of the Committee present at any meeting at which a quorum is present, or acts approved in writing by all members of the Committee without a meeting, shall be the acts of the Committee.

(b)

Unless otherwise determined by the Board, the Committee shall have full and final authority in its discretion, but subject to the express provisions of the Plan, to (i)  prescribe, amend and rescind rules and regulations relating to the Plan; (ii)  interpret the Plan and the respective Stock Options; and (iii)  make all other determinations necessary or advisable for administering the Plan.  All determinations and interpretations by the Committee or the Board shall be binding and conclusive upon all parties.  No member of the Committee or the Board shall be liable for any action or determination made in good faith in respect of the Plan or any Stock Option granted under it.

(c)

The provisions of this Section 5 shall survive any termination of the Plan.

Page 2 of 7

6.

Grants of Options.

(a)

Employees, including Employee directors, Non-Employee Directors and consultants, shall be eligible to be selected by the Committee to receive Stock Option grants.

(b)

Subject to the provisions of the Plan, the Committee shall determine and designate the persons to whom grants will be made, the number of Stock Options to be granted and the terms and conditions of each grant.

7.

Terms and Exercise of Stock Option.

(a)

Unless otherwise determined by the Committee, each Stock Option shall terminate no later than ten (10) years (or such shorter term as may be fixed by the Committee) after the date on which it shall have been granted.  The date of termination pursuant to this paragraph is referred to hereinafter as the “termination date” of the option.

(b)

Each Stock Option shall vest to the extent of twenty percent (20%) on the first anniversary of the date the option is granted to an Optionee and an additional twenty percent (20%) on each of the succeeding four anniversaries of the date of the grant; provided, however, that an Optionee may exercise the vested portion of a Stock Option only after that date which is 18 months after the date of an Initial Public Offering of the Company’s Common Stock (an “IPO”) (such date being hereinafter called the “Effective Date”).  Notwithstanding the foregoing, the Committee shall have the authority to establish a different vesting schedule at the time of grant with respect to any Stock Option.

(c)

The Company is authorized to place “stop orders” on its books to prevent any transfer of shares of Common Stock by shareholders in violation of this Plan.  In the event any Stock Option is exercisable in installments, any shares which may be purchased during such year or other period may be purchased at any times or from time to time during the term of the option unless otherwise provided in the Stock Option Agreement.

(d)

A Stock Option shall be exercised by written notice to the Secretary or Treasurer of the Company at its then principal office.  The notice shall specify the number of shares as to which the Stock Option is being exercised and shall be accompanied by payment in full of the purchase price for such shares; provided, however, that an optionee at his or her discretion may, in lieu of cash payment, to the Company, (i) deliver Common Stock already owned by him or her, valued at Fair Market Value on the date of delivery, as payment for the exercise of any Stock Option provided such shares have been owned by the optionee for at least six months prior to exercise or were not acquired, directly or indirectly, from the Company, or (ii) instruct a broker to notify the Company of optionee’s exercise and sell stock to cover the exercise price and tax withholding.  In the event a Stock Option is being exercised, in whole or in part pursuant to Section 8(c) hereof by any person other than the optionee, a notice of election shall be accompanied by proof satisfactory to the Company of the rights of such person to exercise said Stock Option.  An optionee shall not, by virtue of the granting of a Stock Option, be entitled to any rights of a shareholder in the Company and such optionee shall not be considered a record holder of shares purchased by him or her until the date on which he or she shall actually be recorded as the holder of such shares upon the stock records of the Company.  The Company shall not be required to issue any fractional shares upon exercise of any Stock Option and shall not be required to pay to the person exercising the Stock Option the cash equivalent of any fractional share interest unless so determined by the Committee.

Page 3 of 7

(e)

In the event an optionee elects to deliver Common Stock already owned by such optionee or to request that Common Stock be withheld in accordance with subsection (d) above, upon exercise of a Stock Option granted hereunder, the Company shall be entitled to require as a condition thereto that the optionee remit an amount which the Company deems sufficient to satisfy all Federal, state and other governmental withholding tax requirements related thereto.  The Company shall have the right, in lieu of or in addition to the foregoing to withhold such sums from compensation otherwise due to the optionee.

8.

Other Stock Option Conditions.

(a)

Except as expressly permitted by the Board, no Stock Option shall be transferred by the optionee otherwise than by will or by the laws of descent and distribution.  During the lifetime of the optionee the Stock Option shall be exercisable only by such optionee, by his or her legal representative or by a transferee permitted under the terms of the grant of the Stock Option.

(b)

Unless otherwise determined by the Committee, in the event of the termination of an optionee’s employment by the Company at any time for any reason (excluding disability or death), the portion of his or her Stock Option which is exercisable at the date of termination of employment and all rights thereunder shall terminate on the date of termination of the optionee’s relationship with the Company, except that the optionee shall have the right to exercise his or her Stock Option (to the extent that the optionee was entitled to exercise it as of the date of termination), within three (3) months of the date of termination, but in no event later than the termination date of his or her Stock Option; provided, however, if the optionee is terminated for cause or by optionee’s resignation, the Stock Option shall terminate at 5:00 p.m. on the date of termination of employment.  The Committee or the Board may determine, in their sole discretion, whether the date of termination will be based on the last day the optionee performed services for the Company rather than the date of termination.  Notwithstanding the foregoing, unless otherwise determined by the Committee, in the event an optionee is permanently and totally disabled (within the meaning of section 105(d)(4), or any successor section, of the Code), the portion of his or her Stock Option which is exercisable at the date of disability and all rights thereunder shall be exercisable by the optionee (or his or her legal representative) at any time within three (3) months of termination of employment -- but in no event later than the termination date of his or her Stock Option.

(c)

Unless otherwise determined by the Committee, if an optionee shall die while in the employ of the Company, the portion of his or her Stock Option which is exercisable at the date of death may be exercised by his or her Designated Beneficiary (or if none has been effectively designated by his or her executor, administrator or the person to whom his or her rights under his or her Stock Option shall pass by will or by the laws of descent and distribution) at any time within three (3) months after the date of death, but not later than the termination date of his or her Stock Option.

Page 4 of 7

(d)

Nothing in the Plan or in any Stock Option granted pursuant hereto shall confer on an Employee any right to continue in the employ of the Company or prevent or interfere in any way with the right of the Company to terminate his or her employment at any time, with or without cause.

(e)

Notwithstanding anything to the contrary herein, in the event a Non-Employee Director has served his or her full term, his or her Stock Options that are exercisable shall be exercisable until the termination date of his or her Stock Option.  If a Non-Employee Director shall die while serving on the Board, the portion of his or her Stock Option which is exercisable at the date of death may be exercised by his or her Designated Beneficiary (or if none has been effectively designated by his or her executor, administrator or the person to whom his or her rights under his or her Stock Option shall pass by will or by the laws of descent and distribution) at any time within one (1) year after the date of his or her death, but not later than the termination date of his or her Stock Option.  Nothing in the Plan or in any Stock Option granted pursuant hereto shall confer on any Non-Employee Director any right to continue as a director of the Company.

(f)

Each Stock Option granted pursuant to the Plan shall be evidenced by a written Stock Option Agreement duly executed by the Company and the optionee, in such form and containing such provisions as the Committee may from time to time authorize or approve.  

9.

Adjustments.  The Stock Option Agreements shall contain such provisions as the Committee shall determine to be appropriate for the adjustment of the kind and number of shares subject to each outstanding Stock Option, or the Stock Option prices, or both, in the event of any changes in the outstanding Common Stock of the Company by reason of stock dividends, stock splits, reverse stock splits, liquidation, recapitalizations, reorganizations, mergers, consolidations, combinations or exchanges of shares or the like.  In the event of any such change or changes in the outstanding Common Stock, and as often as the same shall occur, the kind and aggregate number of shares available under the Plan may be appropriately adjusted by the Committee or the Board, whose determination shall be binding and conclusive.

10.

Amendment and Termination.

(a)

Unless the Plan shall have been otherwise terminated as provided herein, it shall terminate on, and no option shall be granted thereunder, after December 31, 2017.  The Board may at any time prior to that date alter, suspend or terminate the Plan as it may deem advisable, except that it may not without further shareholder approval (i) increase the maximum number of shares subject to the Plan (except for changes pursuant to Section 9); (ii) permit the grant of options to anyone other than Employees, including Employee directors, Non-Employee Directors and consultants; (iii) change the manner of determining the minimum stock exercise prices (except for changes pursuant to Section 9); or (iv) extend the period during which Stock Options may be granted or exercised.  Except as otherwise hereinafter provided, no alteration, suspension or termination of the Plan may, without the consent of the optionee to whom any Stock Option shall have theretofore been granted (or the person or persons entitled to exercise such Stock Option under Sections 8(a) or 8(c) of the Plan), terminate such optionee’s Stock Option or adversely affect such optionee’s rights thereunder.

Page 5 of 7

(b)

Anything herein to the contrary notwithstanding, in the event that the Board shall at any time declare it advisable to do so in connection with any proposed sale or conveyance of all or substantially all of the property and assets of the Company, of any proposed consolidation or merger of the Company or the acceptance of any tender offer for a controlling number of shares of the Company (each of the foregoing a “Change of Control Event”), the Company may (i) accelerate the vesting schedule in such manner as the Company may decide in its sole discretion, or (ii) give written notice to the holder of any Stock Option that the portion of his or her Stock Option which is exercisable on the date of the notice may be exercised only within thirty (30) days after the date of such notice but not thereafter, and all rights under said Stock Option which shall not have been so exercised shall terminate at the expiration of such thirty (30) days, provided that the proposed sale, conveyance, consolidation or merger to which such notice shall relate is consummated within six (6) months after the date of such notice.  If such Change of Control Event shall not be consummated within said time period, no unexercised rights under any Stock Option shall be affected by such notice except that such Stock Option may not be exercised between the date of expiration of such thirty (30) days and the date of the expiration of such six month period.  Alternatively, outstanding Stock Options under the Plan may be assumed or converted to similar options in any surviving or acquiring entity, but, if the surviving or acquiring entity shall refuse to assume, or convert, said Stock Options, they shall be terminated if not exercised according to the requirements set forth above.

11.

Option Exercise Price.  The price per share to be paid by the optionee at the time an ISO is exercised shall not be less than one hundred percent (100%) of the Fair Market Value of one share of the optioned Common Stock.  No ISO may be granted under the Plan to any person who, at the time of such grant, owns (within the meaning of Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company unless the exercise price of such ISO is at least equal to one hundred and ten percent (110%) of Fair Market Value.  Unless otherwise determined by the Committee, the price per share to be paid by the optionee at the time an NQO is exercised shall not be less than one hundred percent (100%) of the Fair Market Value.  Anything contained herein to the contrary notwithstanding, the price per share with respect to any Stock Option granted prior to an IPO shall, unless otherwise determined by the Committee, be the price per share the Company’s Common Stock is sold to the public pursuant to the IPO, without regard to any underwriter’s discounts and similar costs.

12.

Ceiling of ISO Grants.  The aggregate Fair Market Value (determined at the time any ISO is granted) of the Common Stock with respect to which an optionee’s ISOs, together with incentive stock options granted under any other plan of the Company exercisable for the first time by such optionee during any calendar year, shall not exceed $100,000 (or the then applicable maximum under the Code).  If an optionee holds such incentive stock options that become first exercisable (including as a result of acceleration of exercisability under the Plan) in any one year for shares having a Fair Market Value at the date of grant in excess of $100,000 (or the then applicable maximum under the Code), then the most recently granted of such ISOs, to the extent that they are exercisable for shares having an aggregate Fair Market Value in excess of such limit, shall be deemed to be NQOs.

Page 6 of 7

13.

Indemnification.  Any member of the Committee or the Board who is made, or threatened to be made, a party to any action or proceeding, whether civil or criminal, by reason of the fact that such person is or was a member of the Committee or the Board insofar as it relates to the Plan shall be indemnified by the Company, and the Company may advance such person’s related expenses, to the full extent permitted by law and/or the Certificate of Incorporation or By-laws of the Company.

14.

Effective Date of the Plan; Termination of the Plan and Stock Options.  The Plan shall become effective on the date of adoption by the Board.

15.

Expenses.  Except as otherwise provided herein for the payment of Federal, State and other governmental taxes, the Company shall pay all fees and expenses incurred in connection with the Plan and the issuance of the stock hereunder.

16.

Government Regulations, Registrations and Listing of Stock.

(a)

The Plan, and the grant and exercise of Stock Options thereunder, and the Company’s obligation to sell and deliver stock under such Stock Options shall be subject to all applicable Federal and State laws, rules and regulations and to such approvals by any regulatory or governmental agency as may, in the opinion of the Company, be necessary or appropriate.

(b)

The Company may in its discretion require, whether or not a registration statement under the Securities Act of 1933 and the applicable rules and regulations thereunder (collectively the “Act”) is then in effect with respect to shares issuable upon exercise of any Stock Option or the offer and sale of such shares is exempt from the registration provisions of such Act, that as a condition precedent to the exercise of any Stock Option the person exercising the Stock Option give to the Company a written representation and undertaking satisfactory in form and substance to the Company that such person is acquiring the shares for his or her own account for investment and not with a view to the distribution or resale thereof and otherwise establish to the Company’s satisfaction that the offer or sale of the shares issuable upon exercise of the Stock Option will not constitute or result in any breach or violation of the Act or any similar act or statute or law or regulation in the event that a Registration statement under the Act is not then effective with respect to the Common Shares issued upon the exercise of such Stock Option; the Company may place upon any stock certificate appropriate legends referring to the restrictions on disposition under the Act.

(c)

In the event the class of shares issuable upon the exercise of any Stock Option is listed on any national securities exchange or Nasdaq, the Company shall not be required to issue a certificate for such shares upon the exercise of any Stock Option, or to list the shares so issuable on such national securities exchange or Nasdaq.

Page 7 of 7Exhibit 10.52

Exhibit 10.52

FRIENDFINDER NETWORKS INC. 2009 RESTRICTED STOCK PLAN

1.

Purpose

This plan’s purpose is to attract and retain the services of Employees (as hereinafter defined), Non-Employee Directors (as hereinafter defined) and such consultants as may be designated and to compensate them for services already provided and to be provided in the future to the Company.  It is recognized that the Company's efforts to attract or retain these individuals will be facilitated with this additional form of compensation.  This plan is intended to be governed by Section 83 of the Code.

2.

Definitions

For purposes of this Plan, the following terms will have the definitions set forth below:

(a)

"At-Risk Shares" means the Restricted Shares of the Company during the time period in which the Company has a right to repurchase. 

(b)

"Board" means the Company’s Board of Directors. 

(c)

"Certain Circumstances" means the termination of Recipient’s employment (i) by the Company for any reason other than a Termination For Cause; or (ii) by the recipient for Good Reason (if the Recipient’s employment is pursuant to an employment agreement with the Company, which provides for a termination by the Recipient For Good Reason (as “For Good Reason” may be defined in such employment agreement)); or (iii) as a result of a Change in Control.

(d)

"Change in Control" means:  (i) the direct or indirect acquisition, whether in one or a series of transactions by any person (as such term is used in Section 13(d) and Section 14(d)(2) of the Securities Exchange Act of 1934, as amended), or related persons  constituting a group (as such term is used in Rule 13d-5 under the Exchange Act), of (A) beneficial ownership (as defined in the Exchange Act) of issued and outstanding shares of stock of the Company, the result of which acquisition is that such person or such group possesses in excess of 50% of the combined voting power of all then-issued and outstanding capital stock of the Company, or (B) the power to elect, appoint, or cause the election or appointment of at least a majority of the members of the Board (or such other governing body in the event the Company or any successor entity is not a corporation); (ii) a merger or consolidation of the Company with a person or a direct or indirect subsidiary of such person, provided that the result of such merger or consolidation, whether in one or a series of related transactions, is that the holders of the outstanding voting stock of the Company immediately prior to the consummation of such transaction do not possess, whether directly or indirectly, immediately after the consummation of such merger or consolidation, in excess of 50% of the combined voting power of all then-issued and outstanding capital stock of the merged or consolidated person, its direct or indirect parent, or the surviving person of such merger or consolidation; or (iii) a sale or disposition, whether in one or a series of transactions, of all or substantially all of the Company’s assets. 

(e)

"Code" means the Internal Revenue Code of 1986 as amended. 

(f)

"Company" means FriendFinder Networks Inc., a Nevada corporation.

(g)

"Date of Issuance" shall have the meaning supplied by Section 6(b), below.

(h)

"Disability” means a condition entitling a Recipient to receive long term disability payments under any long term disability program sponsored by the Company. 

(i)

“Employee” means any individual who is a common-law employee of the Company or any direct or indirect subsidiary thereof.  

(j)

“Exchange Act” means the Securities Exchange Act of 1934, as amended

(k)

“Non-Employee Director” means a director who is not currently an officer of or employed by the Company or any of its majority-owned direct or indirect subsidiaries

(l)

"Plan" means the FriendFinder Networks Inc. 2009 Restricted Stock Plan.

(m)

"Recipient" means an employee of the Company or a Subsidiary to whom shares are granted under this Plan, or such individual’s designated beneficiary, surviving spouse, estate, or legal representative.

(n)

"Restricted Share" or "Restricted Shares" means the share or shares of common stock, par value $0.001 per share, of the Company granted to a Recipient pursuant to this Plan. 

(o)

"Restricted Stock Grant Agreement" means the restricted stock grant agreement between a Recipient and the Company referred to in Section 5(d).

(p)

"Subsidiary" or "Subsidiaries" means a corporation or corporations of which the Company owns, directly or indirectly, shares having a majority of the ordinary voting power for the election of directors.

(q)

"Termination For Cause" means the termination of Recipient’s employment by the Company due to (a) the Recipient’s gross incompetence or willful and serious misconduct, that is injurious to the business, operations or affairs of the Company; or (b) the Recipient’s conviction or plea of nolo contendere to any felony or a determination by the Company, following an opportunity by the Recipient to appear and be heard by the Board, that the Recipient is engaging in or has engaged in fraud, misappropriation, dishonesty in financial dealings or embezzlement in connection with the business, operations or affairs of the Company.

3.

Shares Subject to the Plan

The aggregate number of shares of the Company’s common stock, par value $0.001 per share for which stock awards may be granted under the Plan shall not exceed that number of shares equal to one percent of the fully-diluted equity of the Company on the date that the Company consummates an initial public offering of its common stock pursuant to an effective registration statement filed with the Securities and Exchange Commission, including shares issued in connection with such initial public offering.  Such shares may, at the discretion of the Board consist either in whole or in part of authorized but unissued shares or shares held in the treasury of the Company, including shares repurchased by the Company in the open market or otherwise.  The Company shall at all times during the term of the Plan reserve and keep available such number of shares as will be sufficient to satisfy the requirements of the Plan.  As further set forth in Section 5 hereof, all grants shall be granted by one or more written instruments which shall set forth all terms and conditions. All share amounts contemplated under the Plan are subject to appropriate adjustment in the event of a stock split, reverse stock split, merger, recapitalization and similar transactions which may take place after the date that the Company consummates an initial public offering of its Common Stock pursuant to an effective registration statement filed with the Securities and Exchange Commission.

4.

Administration.

The Plan shall be administered by the Compensation Committee of the Board.  The Compensation Committee of the Board shall interpret this Plan and to the extent and in the manner contemplated herein, shall exercise the discretion reserved to it hereunder.  The Board from time to time may prescribe, amend and rescind rules and regulations relating to this Plan and may make and approve all other determinations necessary for its administration.  The decisions of the Board on any interpretation of this Plan or administration hereof shall be final and binding with respect to the Company and Recipients.  No member of the Board or any officer or employee acting on behalf of the Board shall be personally liable for any action, determination or interpretation taken or made in good faith with respect to the Plan, and all members of the Board and each such officer or employee shall, to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such action, determination or interpretation.

5.

Eligibility and Making of Grants

(a)

Eligible Employees. Any director, employee or consultant of Company or in any other part of the Company or any Subsidiary shall be eligible to receive a grant of Restricted Shares pursuant to the Plan.

(b)

Selection by the Compensation Committee of the Board. From the salaried executive employees eligible to receive grants pursuant to the Plan, the Compensation Committee of the Board may from time to time select those eligible employees to whom grants of Restricted Shares shall be made.  

(c)

Conditions of Effectiveness.  The effectiveness of the Plan is conditioned on the Company's consummating an initial public offering of its common stock pursuant to an effective registration statement filed with the Securities and Exchange Commission and the required consents of any lenders to the Company or holders of preferred stock of the Company, if any. 

(d)

Restricted Stock Grant Agreement.  All grants of Restricted Shares will be governed by an agreement between the Company and the Recipient (the "Restricted Stock Grant Agreement").  The Restricted Stock Grant Agreement shall document the grant of At-Risk Shares pursuant to this Plan. It shall state the number of At-Risk Shares granted, the repurchase price, if any, of the At-Risk Shares granted, the terms and conditions to which the Recipient shall acquire a non-forfeitable right to the Restricted Shares, thus making them no longer At-Risk Shares, through the lapsing of the repurchase provisions, the timing of the lapsing of repurchase provisions and/or contain such other terms and conditions as the Committee from time to time shall deem advisable.  Restricted Stock Grant Agreements governing grants to different Recipients or at different times need not contain similar provisions.  In the case of any discrepancy between the terms of the Plan and the terms of any Restricted Stock Grant Agreement, the Plan provisions shall control.

2

(e)

Limit on Number of Restricted Shares. The total number of Restricted Shares which may be granted pursuant to this Plan shall not exceed one percent of the fully-diluted equity of the Company on the date that the Company consummates an initial public offering of its common stock pursuant to an effective registration statement filed with the Securities and Exchange Commission, including shares issued in connection with such initial public offering. 

(f)

(1)

Each certificate representing Restricted Shares issued to a Recipient shall bear the following legend, or a similar legend deemed by the Company to constitute an appropriate notice of the provisions hereof (any such certificate not having such legend shall be surrendered upon demand by the Company and so endorsed):

(i)

On the face of the certificate:

"Transfer of this stock is restricted in accordance with conditions printed on the reverse of this certificate" 

(ii)

On the reverse:

"THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO LIMITATIONS ON (A) VOTING RIGHTS (AND THE GRANT OF AN IRREVOCABLE PROXY) AND (B) THE TRANSFER OF THE SHARES REPRESENTED HEREBY IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF A RESTRICTED STOCK GRANT AGREEMENT DATED _________, 20__, BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE SHARES (OR THE PREDECESSOR IN INTEREST TO THE SHARES), AND ACCORDINGLY MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED, OR IN ANY MANNER DISPOSED OF EXCEPT IN CONFORMITY WITH THE TERMS THEREOF.  A COPY OF SUCH AGREEMENT IS MAINTAINED AT THE COMPANY'S PRINCIPAL CORPORATE OFFICES."

(2)

Notwithstanding Section 5(f)(1), the Company may reflect ownership of Restricted Shares in book-entry form.

6.

Requirements of Recipients

(a)

Investment Purpose. The Company may require that, in accepting any Restricted Shares, the Recipient agree with, and represent to, the Company that the Recipient is acquiring such Restricted Shares for the purpose of investment and with no present intent to transfer, sell, or otherwise dispose of such shares except for such distribution by a legal representative as shall be required by will or the laws of any jurisdiction in winding up the estate of any Recipient. Such shares shall be transferable thereafter only if the proposed transfer is permitted under the Plan and if, in the opinion of counsel (who shall be satisfactory to the Company), such transfer at such time complies with applicable securities laws.

(b)

Written Agreement/Date of Issuance. The Recipient shall deliver to the Company, in duplicate, the Restricted Stock Grant Agreement in writing, signed by the Recipient, and the Company will promptly acknowledge its receipt thereof. The date of such delivery and receipt shall be deemed the "Date of Issuance," as that phrase is used in this Plan, of the Restricted Shares to which the shares relate. The failure to make such delivery within 15 days from the date of grant shall terminate the grant of such shares to the Recipient.  The Recipient shall also, as further condition of receiving such shares, acknowledge receipt of a copy of the provision of the certificate of the Company setting forth the rights and privileges of the common stock of the Company.

7.

Restrictions; Rights as a Shareholder

(a)

Transfer/Issuance. Restricted Shares after the making of the representations, etc., required by Section 6, will be promptly issued or transferred and a certificate or certificates for such shares shall be issued in the Recipient’s name but may not be sold, assigned, transferred or pledged by the Recipient, unless and until such shares become vested Restricted Shares. 

(b)

The Recipient shall be a shareholder of all the shares represented by the certificate or certificates issued to him. As such, the Recipient will have all the rights of a shareholder with respect to such shares, including the right to vote them and to receive all dividends and other distributions paid with respect to them. 

3

8.

Company Repurchase 

If a Recipient's employment is terminated prior to the vesting of Restricted Shares granted to him, except for termination of the Recipient’s employment under Certain Circumstances, or due to the Recipient’s death, Disability or, if the Recipient’s employment is pursuant to an employment agreement with the Company, termination of the Recipient’s employment upon the expiration of the “Term” (as defined under the Recipient’s employment agreement), Recipient’s At-Risk Shares shall be subject to repurchase from the Recipient by the Company in accordance with the terms and conditions in the Restricted Stock Grant Agreement.  Unless otherwise determined by the Compensation Committee of the Board, the Restricted Shares shall vest upon the third anniversary of the date of their grant and the repurchase price for At-Risk Shares shall be $0.10 per share.

9.

Limitations

(a)

No Right to Grant. No person will at any time have any right to receive a grant of Restricted Shares under the Plan. 

(b)

No Right to Continued Employment. Neither the Company’s action in establishing the Plan, nor any action taken by it or by the Board under the Plan, nor any provision of the Plan, will be construed as giving to any person the right to be retained in the employ of the Company or any Subsidiary.

(c)

Limitation on Actions. Every right of action by or on behalf of the Company or by any shareholder against any past, present, or future member of the Board or any officer or employee of the Company arising out of or in connection with this Plan shall, regardless of the place where the action may be brought and regardless of the place of residence of any such director, officer or employee, cease and be barred by the expiration of three years from the later of:

(i)

the date of the act or omission in respect of which such right of action arises; or

(ii)

the first date upon which there has been made generally available to shareholders an annual report of the Company and a proxy statement for the annual meeting of shareholders following the issuance of such annual report, which annual report and proxy statement alone or together set forth, for the related period, the amount of the grants.

In addition, any and all right of action by any employee (past, present or future) against the Company or any member of the Board arising out of or in connection with this Plan will, regardless of the place where action may be brought and regardless of the place of residence of any Board member, cease and be barred by the expiration of three years from the date of the act or omission in respect of which such right of action arises.

10.

Amendment, Suspension or Termination of Plan

The Board may amend, suspend or terminate the Plan in whole or in part at any time; provided that such amendment will not affect adversely rights or obligations with respect to grants previously made.

11.

Governing Law.

The Plan will be governed by the laws of the State of Nevada, without reference to conflict of laws principles.

12.

Expenses of Administration.

All costs and expenses incurred in the operation and administration of the Plan will be borne by the Company.

13.

Miscellaneous

(a)

Each Recipient shall, no later than the date as of which the value of any Restricted Shares first becomes includible in the gross income of the Recipient, for federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Committee regarding payment of any federal, state or local taxes of any kind required by law to be withheld with respect thereto.  The Company shall have the right to deduct any such taxes from any payment of any kind otherwise due to the Recipient.

(b)

If a Recipient who is a taxpayer of the United States makes an election under Section 83(b) of the Code in the year of a grant of Restricted Shares and otherwise in accordance with the rules and regulations thereof, the Recipient shall promptly furnish a copy thereof to the Company.  The Company may, in its discretion, preclude any Recipient from making such election.

(c)

This Plan shall become effective upon approval by the Board and shall terminate upon the earlier of fifteen years or by action of the Board, whichever shall occur first, provided that any provisions permitting the Company to repurchase Restricted Shares and the indemnity set forth in Section 4 shall continue in full force and effect.

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]