Document:

2007 Long-Term Incentive Plan

    Exhibit
      10.1

    

    GEMSTAR-TV
      GUIDE INTERNATIONAL, INC.

    2007
      LONG-TERM INCENTIVE PLAN 

    

    ARTICLE
      I

    GENERAL
      

     

    Section
      1.1     Purpose.
      

     

    The
      purpose of the Gemstar-TV Guide International, Inc. 2007 Long-Term Incentive
      Plan (the “Plan”) is to benefit and advance the interests of Gemstar-TV Guide
      International, Inc., a Delaware corporation (the “Company”), and its
      subsidiaries by making awards to certain employees, directors and other service
      providers of the Company and its subsidiaries as an additional incentive for
      them to make contributions to the financial success of the Company.

     

    Section
      1.2       Definitions.
      

     

    As
      used
      in the Plan, the following terms shall have the following meanings:

     

    (a)  “Administrator”
shall
      mean the individual or individuals to whom the Committee delegates authority
      under the Plan in accordance with Section 1.3(c).

     

    (b)  “Affiliate”
shall
      mean, with respect to the Company, any company or other trade or business that
      controls, is controlled by or is under common control with the Company,
      including, without limitation, any subsidiary; provided, that solely for the
      purposes of the Plan there shall be a presumption of control by the Company
      if
      the Company owns more than 20% of the value, or more than 20% of the combined
      voting power, of the other trade or business.

     

    (c)  “Agreement”
shall
      mean the written agreement or certificate or other documentation governing
      an
      Award under the Plan, which shall contain terms and conditions not inconsistent
      with the Plan and which shall incorporate the Plan by reference.

     

    (d)  “Awards”
shall
      mean any Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted
      Stock Units, unrestricted shares of Common Stock, Dividend Equivalents,
      Performance Awards or Other Awards or a combination of any of the
      above.

     

    (e)  “Board”
shall
      mean the Board of Directors of the Company.

     

    (f)  “Cause”
      means as
      determined by the Board and unless otherwise provided in an applicable agreement
      with the Company or an Affiliate, (i) gross negligence or willful misconduct
      in
      connection with the performance of duties, (ii) conviction of a criminal offense
      (other than minor traffic offenses); or (iii) material breach of any term of
      any
      employment, consulting or other services, confidentiality, intellectual property
      or non-competition agreements, if any, between the Service Provider and the
      Company or an Affiliate.

     

    (g)  “Change
      of Control”
      means
      (i) the dissolution or liquidation of the Company, (ii) a sale of substantially
      all of the assets of the Company to another person or entity, (iii) any
      transaction (including without limitation a merger or reorganization in which
      the Company is the surviving entity) which results in any person or entity
      (other than persons who are shareholders or Affiliates immediately prior to
      the
      transaction) owning 50% or more of the combined voting power of all classes
      of
      stock of the Company, (iv) any “person” (as such term is used in Section
      13(d) and 14(d) of the Exchange Act) (other than an Affiliate at the time of
      adoption of this Plan) becomes the “beneficial owner” (as defined in Rule 13d-3
      under the Exchange Act), directly or indirectly, of more than 50% of the
      Company’s then outstanding securities entitled to then vote generally in the
      election of directors of the Company, or (v) during any period of not
      longer than two consecutive years, individuals who at the beginning of such
      period constituted the Board cease to constitute at least a majority thereof,
      unless the election, or the nomination for election by the Company’s
      shareholders, of each new Board member was approved by a vote of at least
      three-fourths of the Board members then still in office who were Board members
      at the beginning of such period, including for these purposes (but without
      duplication of predecessors and successors), new members whose election or
      nomination was so approved.

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (h)  “Code”
shall
      mean the Internal Revenue Code of 1986, as amended, including any successor
      law
      thereto, and the rules and regulations promulgated thereunder.

     

    (i)  “Committee”
shall
      mean the Compensation Committee of the Board (or such other Committee(s) as
      may
      be appointed or designated by the Board) to administer the Plan in accordance
      with Section 1.3 of the Plan.

     

    (j)  “Common
      Stock”
shall
      mean shares of common stock, par value $0.01 per share, of the
      Company.

     

    (k)  “Date
      of Grant”
means,
      as determined by the Committee, the latest to occur of (i)
      the
      date as of which the Committee approves an Award, (ii) the date on which the
      recipient of an Award first becomes eligible to receive an Award under
Section 1.4
      hereof,
      or (iii) such other date as may be specified by the Committee.

     

    (l)  “Dividend
      Equivalent”
shall
      mean a right to receive a payment based upon the value of the regular cash
      dividend paid on a specified number of shares of Common Stock as set forth
      in
      Section 6.1 hereof. Payments in respect of Dividend Equivalents may be in cash,
      or, in the discretion of the Committee, in shares of Common Stock or in a
      combination of cash or shares of Common Stock.

     

    (m)  “Effective
      Date”
shall
      mean May 16, 2007.

     

    (n)  “Exchange
      Act”
shall
      mean the Securities Exchange Act of 1934, as amended, including any successor
      law thereto.

     

    (o)  “Expiration
      Date”
shall
      mean the earlier to occur of (A) the expiration of the option period or Stock
      Appreciation Right period set forth in the applicable Agreement or (B) the
      tenth
      anniversary of the Date of Grant of the Stock Option or SAR.

     

    (p)  “Fair
      Market Value”
of
      a
      share of Common Stock on a given date shall mean, unless otherwise determined
      by
      the Committee, the 4:00 p.m. (New York time) closing price on such date (or
      if
      no closing price was reported on that date, as applicable, on the preceding
      business day) on The Nasdaq Stock Market or other principal stock exchange
      on
      which the Common Stock is then listed, as reported by The Wall Street Journal
      (Northeast edition) or any other authoritative source selected by the Company.
      If the Common Stock is not listed on such an exchange, quoted on such system
      or
      traded on such a market, Fair Market Value shall be the value of the Common
      Stock as determined by the Board in good faith.

     

    (q)  “GAAP”
shall
      mean generally accepted accounting principles in the United States.

     

    (r)  “Other
      Awards”
shall
      mean any form of award authorized under Section 6.2 of the Plan, other than
      a
      Stock Option, Stock Appreciation Right, Restricted Stock, Restricted Stock
      Unit,
      unrestricted share of Common Stock, Performance Award or Dividend
      Equivalent.

     

    (s)  “Outstanding
      Stock Option”
shall
      mean a Stock Option granted to a Participant which has not yet been exercised
      and which has not yet expired or been terminated in accordance with its
      terms.

     

    (t)  “Outstanding
      Stock Appreciation Right”
or
      “Outstanding
      SAR”
shall
      mean a Stock Appreciation Right granted to a Participant which has not yet
      been
      exercised and which has not yet expired or been terminated in accordance with
      its terms.

     

    (u)  “Participant”
shall
      mean any employee, director or other Service Provider of the Company or any
      Affiliate who has met the eligibility requirements set forth in Section 1.4
      hereof and to whom an Award has been made under the Plan.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (v)  “Performance
      Award”
shall
      mean any award of Performance Shares or Performance Units pursuant to Article
      V
      hereof.

     

    (w)  “Performance
      Goals”
shall
      have the meaning set forth in Section 5.2 hereof.

     

    (x)  “Performance
      Period”
shall
      mean a period of time of at least one year over which performance is measured
      as
      determined by the Committee in its sole discretion.

     

    (y)  “Performance
      Share”
shall
      mean an award granted pursuant to Article V hereof of a share of Common Stock
      subject to the terms and conditions set forth in the applicable
      Agreement.

     

    (z)  “Performance
      Units”
shall
      mean an award granted pursuant to Article V hereof, payable in cash, or, in
      the
      discretion of the Committee, in shares of Common Stock or in a combination
      of
      cash or shares of Common Stock, subject to the terms and conditions set forth
      in
      the Plan and in the applicable Agreement.

     

    (aa)  “Permanent
      Disability”
shall
      have the same meaning as such term or a similar term has in the long-term
      disability policy maintained by the Company or an Affiliate thereof for the
      Participant and that is in effect on the date of the onset of the Participant’s
      Permanent Disability, unless the Committee determines otherwise, in its
      discretion; provided, however, with respect to grants of Incentive Stock
      Options, permanent disability shall have the meaning given it under the rules
      governing Incentive Stock Options under the Code.

     

    (bb)  “Restricted
      Stock”
shall
      mean a share of Common Stock granted to a Participant pursuant to
      Article III, which is subject to the restrictions set forth in Section 3.3
      hereof and to such other terms, conditions and restrictions as are set forth
      in
      the Plan and the applicable Agreement.

     

    (cc)  “Restricted
      Stock Unit”
shall
      mean a contractual right granted to a Participant pursuant to Article IV to
      receive, in the discretion of the Committee, shares of Common Stock, a cash
      payment equal to the Fair Market Value of Common Stock or a combination of
      cash
      or shares of Common Stock, subject to the terms and conditions set forth in
      the
      Plan and in the applicable Agreement.

     

    (dd)  “Retirement”
shall
      mean the voluntary resignation or termination of employment after attainment
      of
      age 60 with ten years of service with the Company or any of its
      Affiliates.

     

    (ee)  “Section
      162(m)”
shall
      mean Section 162(m) of the Code and the rules and regulations promulgated
      thereunder from time to time.

     

    (ff)  “Section
      162(m) Exception”
shall
      mean the exception under Section 162(m) and the regulations thereunder for
      “qualified performance-based compensation.”

     

    (gg)  “Section
      162(m) Performance Goals”
shall
      have the meaning set forth in Section 5.2 hereof.

     

    (hh)  “Service”
shall
      mean service as a Service Provider to the Company or any of its Affiliates.
      A
      change in position or duties shall not result in interrupted or terminated
      Service, so long as the Participant continues to be a Service Provider. Whether
      a termination of Service shall have occurred for purposes of the Plan shall
      be
      determined by the Committee, whose determination shall be final, binding and
      conclusive.

     

    (ii)  “Service
      Provider”
shall
      mean an employee, officer or director of the Company or an Affiliate, or an
      individual consultant or adviser currently providing services to the Company
      or
      an Affiliate.

     

    (jj)  “Stock
      Appreciation Right”
or
      “SAR”
shall
      mean a contractual right granted to a Participant pursuant to Article II to
      receive an amount determined in accordance with Section 2.6 of the Plan, subject
      to such other terms and conditions as are set forth in the Plan and the
      applicable Agreement.

     

    
       

      (kk)  “Stock
        Option”
shall
        mean a contractual right granted to a Participant pursuant to Article II
        to
        purchase shares of Common Stock at such time and price, and subject to such
        other terms and conditions as are set forth in the Plan and the applicable
        Agreement. Stock Options may be “Incentive Stock Options” within the meaning of
        Section 422 of the Code or “Non-Qualified Stock Options” which do not meet the
        requirements of such Code section.

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
    

    (ll)  “Substitute
      Awards”
shall
      mean Awards granted upon assumption of, or in substitution for, outstanding
      awards previously granted by a company or other entity acquired by the Company
      or with which the Company combines.

     

    (mm)  “Termination
      for Cause”
shall
      mean a termination of Service with the Company or any of its Affiliates which,
      as determined by the Committee, is by reason of (i) “cause” as such term or a
      similar term is defined in any employment agreement that is in effect and
      applicable to the Participant, (ii) if there is no such employment agreement
      or
      if such employment agreement contains no such term, unless the Committee
      determines otherwise, “cause” shall
      mean that a Participant has engaged in or committed: willful misconduct; gross
      negligence; theft, fraud or other illegal conduct; refusal or unwillingness
      to
      perform the duties assigned to a Participant; violation of any policy or
      procedure applicable to the Company and a Participant, including but not limited
      to the standards of business conduct and the policy prohibiting unlawful
      discrimination, including sexual harassment; conduct which reflects adversely
      upon, or making any remarks disparaging of, the Company, its board of directors
      or other governing body, officers, directors, advisors or employees or its
      parent, subsidiaries or affiliates; insubordination; any willful act that is
      likely to and/or which does in fact have the effect of injuring the reputation,
      business or a business relationship of the Company; violation of any fiduciary
      duty including any duty of loyalty; or breach of any term of any employment
      agreement.

     

    Section
      1.3     Administration
      of the Plan. 

     

    (a)  Board
      or Committee to Administer.
      The
      Plan shall be administered by the Board or by a Committee appointed by the
      Board, consisting of at least two members of the Board; provided that, with
      respect to any Award that is intended to satisfy the requirements of the Section
      162(m) Exception, such Committee shall consist of at least such number of
      directors as is required from time to time to satisfy the Section 162(m)
      Exception, and each such Committee member shall satisfy the qualification
      requirements of such exception; provided, however, that, if any such Committee
      member is found not to have met the qualification requirements of the Section
      162(m) Exception, any actions taken or Awards granted by the Committee shall
      not
      be invalidated by such failure to so qualify.

     

    (b)  Powers
      of the Committee. 

     

    (i)  The
      Committee shall adopt such rules as it may deem appropriate in order to carry
      out the purpose of the Plan. All questions of interpretation, administration
      and
      application of the Plan shall be determined by a majority of the members of
      the
      Committee then in office, except that the Committee may authorize any one or
      more of its members, any officer or other designee of the Company, to execute
      and deliver documents on behalf of the Committee. The determination of such
      majority shall be final and binding as to all matters relating to the
      Plan.

     

    (ii)  The
      Committee shall have authority to select Participants from among the class
      of
      eligible persons specified in Section 1.4 below, to determine the type of Award
      to be granted, to determine the number of shares of Common Stock subject to
      an
      Award or the cash amount payable in connection with an Award, and to determine
      the terms and conditions of each Award in accordance with the terms of the
      Plan.
      Except as provided in Section 2.5, 2.6(d) and Section 5.4, the Committee shall
      also have the authority to amend the terms of any outstanding Award or waive
      any
      conditions or restrictions applicable to any Award; provided, however, that
      no
      amendment shall materially impair the rights of the holder thereof without
      the
      holder’s consent. With respect to any restrictions in the Plan or in any
      Agreement that are based on the requirements of Section 422 of the Code, the
      Section 162(m) Exception, the rules of any exchange upon which the Company’s
      securities are listed, or any other applicable law, rule or restriction to
      the
      extent that any such restrictions are no longer required, the Committee shall
      have the sole discretion and authority to grant Awards that are not subject
      to
      such restrictions and/or to waive any such restrictions with respect to
      outstanding Awards.

     

     

    
      
        
        

      

      
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    (c)  Delegation
      by the Committee.
      The
      Committee may, but need not, from time to time delegate, to the extent permitted
      by law, some or all of its authority under the Plan to an Administrator
      consisting of one or more members of the Committee or of one or more members
      of
      the Board; provided, however, that the Committee may not delegate its authority
      (i) to make Awards to employees (A) who are subject on the date of the Award
      to
      the reporting rules under Section 16(a) of the Exchange Act, (B) whose
      compensation for such fiscal year may be subject to the limit on deductible
      compensation pursuant to Section 162(m) or (C) who are officers of the Company
      who are delegated authority by the Committee hereunder, or (ii) to interpret
      the
      Plan or any Award, or (iii) under Article IX of the Plan. Any delegation
      hereunder shall be subject to the restrictions and limits that the Committee
      specifies at the time of such delegation or thereafter. Nothing in the Plan
      shall be construed as obligating the Committee to delegate authority to an
      Administrator, and the Committee may at any time rescind the authority delegated
      to an Administrator appointed hereunder or appoint a new Administrator. At
      all
      times, the Administrator appointed under this Section 1.3(c) shall serve in
      such
      capacity at the pleasure of the Committee. Any action undertaken by the
      Administrator in accordance with the Committee’s delegation of authority shall
      have the same force and effect as if undertaken directly by the Committee,
      and
      any reference in the Plan to the Committee shall, to the extent consistent
      with
      the terms and limitations of such delegation, be deemed to include a reference
      to the Administrator. 

     

    Section
      1.4     Eligible
      Persons.

     

    Awards
      may be granted to any employee, director or other Service Provider of the
      Company or any of its Affiliates.

     

    Section
      1.5     Common
      Stock Subject to the Plan.

     

    (a)  Plan
      Limit. The shares of Common Stock subject to Awards under the Plan shall be
      made
      available from authorized but unissued Common Stock or from Common Stock issued
      and held in the treasury of the Company. Subject to adjustment under Article
      VII
      hereof, the total number of shares of Common Stock that may be distributed
      under
      the Plan (the “Section 1.5 Limit”) shall not exceed, in the aggregate,
      30,000,000 shares of Common Stock. 

     

    (b)  Rules
      Applicable to Determining Shares Available for Issuance. For purposes of
      determining the number of shares of Common Stock that remain available for
      issuance, the following rules apply: 

     

    (i)  In
      connection with the granting of an Award (other than an Award settled in
      dollars), the number of shares of Common Stock in respect of which the Award
      is
      granted or denominated shall be counted against the Section 1.5 Limit. Stock
      Appreciation Rights granted under the Plan that are settled in stock shall
      reduce the Section 1.5 Limit on a one-for-one basis based on the number of
      shares of Common Stock for which the Stock Appreciation Rights are denominated,
      not based on the number of shares of Common Stock actually delivered pursuant
      to
      the Stock Appreciation Rights.

     

    (ii)  To
      the
      extent permitted by law or the rules and regulations of any stock exchange
      on
      which the Common Stock is listed, the number of shares of Common Stock that
      shall be added back to the Section 1.5 Limit and shall again be available for
      Awards, shall be the corresponding number of shares of Common Stock that are
      (A)
      subject to an Award which for any reason expires or is cancelled, forfeited,
      or
      terminated without having been exercised or paid and (B) subject to Awards
      that
      are instead settled in cash.

     

    (iii)  Any
      shares of Common Stock underlying Substitute Awards shall not be counted against
      the Section 1.5 Limit. 

     

    Notwithstanding
      anything in this Section 1.5 to the contrary, in no event shall more than
      30,000,000 shares of Common Stock, subject to adjustment pursuant to Article
      VII
      hereof, be granted pursuant to incentive stock options under the Plan.

     

    Section
      1.6     Section
      162(m) Limits on Awards to Participants. 

     

    (a)  Limits
      on
      Certain Stock Options and Stock Appreciation Rights. The maximum aggregate
      number of shares of Common Stock that may be granted to any Participant during
      any single calendar year with respect to Stock Options or Stock Appreciation
      Rights that are granted at no less than 100% of Fair Market Value on the Date
      of
      Grant is 2.0 million shares (regardless of whether Stock Appreciation Rights
      are
      settled in cash, Common Stock, other Company securities or a combination
      thereof) unless the grant is made in the Participant’s year of hire, in which
      case the limit is 4.0 million shares, subject to adjustment pursuant to Article
      VII hereof.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (b)  Limits
      on
      other Awards. The maximum amount of Awards (other than those Awards set forth
      in
      Section 1.6(a)) intended to qualify for the Section 162(m) Exception that may
      be
      awarded to any Participant in respect of any Performance Period is $2.0 million
      (with respect to Awards denominated in cash) and 1.0 million shares of Common
      Stock (with respect to Awards denominated in shares of Common Stock), subject
      to
      adjustment pursuant to Article VII hereof. 

     

    Section
      1.7     Agreements.
      

     

    The
      Committee shall determine and set forth in an Agreement the terms and conditions
      of each Award (other than an Award of unrestricted Common Stock). Each Agreement
      (i) shall state the Date of Grant and the name of the Participant, (ii) shall
      specify the terms of the Award, (iii) shall be signed (including by electronic
      signature) by a person designated by the Committee and, if so required by the
      Committee, by the Participant, (iv) shall incorporate the Plan by reference
      and
      (v) shall be delivered or otherwise made available to the Participant. The
      Agreement shall contain such other terms and conditions as are required by
      the
      Plan and, in addition, such other terms not inconsistent with the Plan as the
      Committee may deem advisable. The Committee shall have the authority to adjust
      the terms of the Agreements relating to an Award in a jurisdiction outside
      of
      the United States, and/or to adopt a schedule to the Plan regarding the terms
      of
      Awards to be granted in any such jurisdiction, (i) to comply with the laws
      of
      such jurisdiction or (ii) to obtain more favorable tax treatment for the Company
      and/or any Affiliate, as applicable, and/or for the Participants in such
      jurisdiction. Such authority shall be notwithstanding the fact that the
      requirements of the local jurisdiction may be more restrictive than the terms
      set forth in the Plan.

     

    ARTICLE
      II

     

    PROVISIONS
      APPLICABLE TO STOCK OPTIONS AND STOCK APPRECIATION RIGHTS 

     

    Section
      2.1     Grants
      of Stock Options. 

     

    The
      Committee may from time to time grant to eligible employees, directors or other
      Service Providers of the Company or any of its Affiliates Stock Options on
      the
      terms and conditions set forth in the Plan and on such other terms and
      conditions as are not inconsistent with the purposes and provisions of the
      Plan,
      as the Committee, in its discretion, may from time to time determine. Each
      Agreement covering a grant of Stock Options shall specify the number of Stock
      Options granted, the Date of Grant, the exercise price of such Stock Options,
      whether such Stock Options are Incentive Stock Options or Non-Qualified Stock
      Options, the period during which such Stock Options may be exercised, any
      vesting schedule, any Performance Goals and any other terms that the Committee
      deems appropriate. 

     

    Section
      2.2     Exercise
      Price. 

     

    The
      Committee shall establish the per share exercise price of a Stock Option on
      the
      Date of Grant in such amount as the Committee shall determine; provided that
      such exercise price shall not be less than 100% of the Fair Market Value of
      a
      share of Common Stock on the Date of Grant. In addition, notwithstanding the
      foregoing, the per share exercise price of a Stock Option that is a Substitute
      Award may be less than 100% of the Fair Market Value of a share of Common Stock
      on the Date of Grant, provided that the excess of: 

     

    (i)  the
      aggregate Fair Market Value (as of the Date of Grant of such Substitute Award)
      of the shares of Common Stock subject to the Substitute Award, over

     

    (ii)  the
      aggregate exercise price thereof, does not exceed the excess of:

     

     

    
      
        
        

      

      
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    (iii)  the
      aggregate fair market value (as of the time immediately preceding the
      transaction pursuant to which the Substitute Award was granted, such fair market
      value to be determined by the Committee) of the shares of the predecessor entity
      that were subject to the award assumed or substituted for by the Company,
      over

     

    (iv)  the
      aggregate exercise price of such shares.

     

    The
      exercise price of any Stock Option will be subject to adjustment in accordance
      with the provisions of Article VII of the Plan.

     

    Section
      2.3     Exercise
      of Stock Options. 

     

    (a)  Exercisability.
      Stock
      Options shall be exercisable only to the extent the Participant is vested
      therein, subject to any restrictions that the Committee shall determine and
      specify in the applicable Agreement (or any employment agreement applicable
      to
      the Participant). The Committee shall establish the vesting schedule applicable
      to the Stock Options granted hereunder, which vesting schedule shall specify
      the
      period of time, the increments in which a Participant shall vest in the Stock
      Options and/or any applicable Performance Goal requirements, subject to any
      restrictions that the Committee shall determine and specify in the applicable
      Agreement (or any employment agreement applicable to the
      Participant).

     

    (b)  Option
      Period.
      For
      each Stock Option granted, the Committee shall specify the period during which
      the Stock Option may be exercised.

     

    (c)  Exercise
      in the Event of Termination of Service, Retirement, Death or Permanent
      Disability.
      The
      Committee shall determine and specify in the applicable Agreement (or any
      employment agreement applicable to the Participant) the effect of a termination
      of Service on the rights and benefits in respect of each Stock Option granted
      thereunder and in so doing may make distinctions based upon the cause of
      termination.

     

    (d)  Maximum
      Exercise Period.
      Anything in this Section 2.3(d) to the contrary notwithstanding and unless
      the
      Committee determines otherwise, no Stock Option shall be exercisable after
      the
      Expiration Date. If the Expiration Date determined in accordance with the
      preceding sentence is not a business day, the Stock Options may be exercised
      up
      to and including the last business day before such date.

     

    (e)  Adjustment
      with Respect to Stock Options.
      Any
      other provision of the Plan to the contrary notwithstanding, the Committee
      may,
      in its discretion, at any time accelerate the date or dates on which Stock
      Options vest.

     

    Section
      2.4     Payment
      of Purchase Price Upon Exercise.

     

    Every
      share purchased through the exercise of a Stock Option shall be paid for in
      full
      on or before the settlement date for the shares of Common Stock issued pursuant
      to the exercise of the Stock Options in cash or, in the discretion of the
      Committee, in shares of Common Stock, in a combination of cash or shares or
      in
      any other form of valid consideration that is acceptable to the Committee in
      its
      sole discretion. If the Agreement so provides, such exercise price may also
      be
      paid in whole or in part using a net share settlement procedure or through
      the
      withholding of shares subject to the Stock Option with a value equal to the
      exercise price. In accordance with the rules and procedures established by
      the
      Company for this purpose, a Stock Option may also be exercised through a
“cashless exercise” procedure, involving a broker or dealer, that affords
      Participants the opportunity to sell immediately some or all of the shares
      underlying the exercised portion of the Stock Option in order to generate
      sufficient cash to pay the exercise price of the Option.

     

    Section
      2.5     No
      Repricing of Stock Options.

     

    The
      Committee may not “reprice” any Stock Option without approval of the Company’s
      stockholders. “Reprice” means any of the following or any other action that has
      the same effect: (i) amending a Stock Option to reduce its exercise price,
      (ii)
      canceling a Stock Option at a time when its exercise price exceeds the Fair
      Market Value of a share of Common Stock in exchange for a Stock Option,
      Restricted Stock or other equity award unless the cancellation and exchange
      occurs in connection with a merger, acquisition, spin-off or other similar
      corporate transaction, or (iii) taking any other action that is treated as
      a
      repricing under GAAP, provided that nothing in this Section 2.5 shall prevent
      the Committee from making adjustments pursuant to Article VII.

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

     

    Section
      2.6     Stock
      Appreciation Rights.

     

    (a)     Generally.
      The
      Committee may grant Stock Appreciation Rights alone or in tandem with other
      Awards.

     

    (b)  Stock
      Appreciation Rights Granted In Tandem with Stock
      Options.
      If the
      Stock Appreciation Right is granted in tandem with a Stock Option, such Stock
      Appreciation Right may be granted either at the time of the grant of the Stock
      Option or by amendment at any time prior to the exercise, expiration or
      termination of such Stock Option. The Stock Appreciation Right shall be subject
      to the same terms and conditions as the related Stock Option and shall be
      exercisable only at such times and to such extent as the related Stock Option
      is
      exercisable. A Stock Appreciation Right shall entitle the holder to surrender
      to
      the Company the related Stock Option unexercised and receive from the Company
      in
      exchange therefor an amount equal to the excess of the Fair Market Value of
      the
      shares of Common Stock subject to such Stock Option, determined as of the day
      preceding the surrender of such Stock Option, over the Stock Option aggregate
      exercise price. Such amount shall be paid in cash, or in the discretion of
      the
      Committee, in shares of Common Stock or in a combination of cash or shares
      of
      Common Stock.

     

    (c)  Stock
      Appreciation Rights Granted Alone or In Tandem with Awards Other Than Stock
      Options.
      Subject
      to the next sentence and Section 2.6(d), Stock Appreciation Rights granted
      alone
      or in tandem with Awards other than Stock Options shall be subject to such
      terms
      and conditions as the Committee shall establish at or after the time of grant
      and set forth in the applicable Agreement. The Committee shall establish the
      per
      share exercise price of a Stock Appreciation Right granted alone on the Date
      of
      Grant in such amount as the Committee shall determine; provided that such
      exercise price shall not be less than 100% of the Fair Market Value of a share
      of Common Stock on the Date of Grant. In addition, notwithstanding the
      foregoing, the per share exercise price of a Stock Appreciation Right that
      is a
      Substitute Award may be less than 100% of the Fair Market Value of a share
      of
      Common Stock on the Date of Grant; provided that the excess of: 

     

    (i)  the
      aggregate Fair Market Value (as of the Date of Grant of such Substitute Award)
      of the shares of Common Stock subject to the Substitute Award, over

     

    (ii)  the
      aggregate exercise price thereof, does not exceed the excess of:

     

    (iii)  the
      aggregate fair market value (as of the time immediately preceding the
      transaction pursuant to which the Substitute Award was granted, such fair market
      value to be determined by the Committee) of the shares of the predecessor entity
      that were subject to the award assumed or substituted for by the Company,
      over

     

    (iv)  the
      aggregate exercise price of such shares. 

     

    The
      exercise price of any Stock Appreciation Right will be subject to adjustment
      in
      accordance with the provisions of Article VII of the Plan. The Committee shall
      establish the vesting schedule applicable to the Stock Appreciation Rights
      granted hereunder, whether granted alone or in tandem with Awards other than
      Stock Options, which vesting schedule shall specify the period of time, the
      increments in which a Participant shall vest in the Stock Options and/or any
      applicable Performance Goal requirements, subject to any restrictions that
      the
      Committee shall determine and specify in the applicable Agreement (or any
      employment agreement applicable to the Participant). The period specified by
      the
      Committee during which the Stock Appreciation Right may be exercised is the
      SAR
      period. 

     

    (d)  Exercise
      of Stock Appreciation Rights Granted Alone or in Tandem With Awards Other Than
      Stock Options in the Event of Termination of Service, Retirement, Death or
      Permanent Disability.
      The
      Committee shall determine and specify in the applicable Agreement (or any
      employment agreement applicable to the Participant) the effect of a termination
      of Service on the rights and benefits in respect of each Stock Appreciation
      Right granted thereunder and in so doing may make distinctions based upon the
      cause of termination.

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (e)  Maximum
      Exercise Period.
      Anything in this Section 2.6(e) to the contrary notwithstanding and unless
      the
      Committee determines otherwise, no Stock Appreciation Rights shall be
      exercisable after the Expiration Date. If the Expiration Date determined in
      accordance with the preceding sentence is not a business day, the Stock
      Appreciation Rights may be exercised up to and including the last business
      day
      before such date.

     

    (f)  Adjustment
      with Respect to Stock Appreciation Rights.
      Any
      other provision of the Plan to the contrary notwithstanding, the Committee
      may,
      in its discretion, at any time accelerate the date or dates on which Stock
      Appreciation Rights vest.

     

    (g)  No
      Repricing of Stock Appreciation Rights.
      The
      Committee may not “reprice” Stock Appreciation Rights without approval of the
      Company’s stockholders. “Reprice” means any of the following or any other action
      that has the same effect: (i) amending Stock Appreciation Rights to reduce
      its
      exercise price, (ii) canceling Stock Appreciation Rights at a time when its
      exercise price exceeds the Fair Market Value of a share of Common Stock in
      exchange for Stock Appreciation Rights, Restricted Stock or other equity award
      unless the cancellation and exchange occurs in connection with a merger,
      acquisition, spin-off or other similar corporate transaction, or (iii) taking
      any other action that is treated as a repricing under GAAP, provided that
      nothing in this Section 2.6(f) shall prevent the Committee from making
      adjustments pursuant to Article VII.

     

    ARTICLE
      III

     

    PROVISIONS
      APPLICABLE TO RESTRICTED STOCK 

     

    Section
      3.1     Grants
      of Restricted Stock. 

     

    The
      Committee may from time to time grant to eligible employees or other Service
      Providers Restricted Stock on the terms and conditions set forth in the Plan
      and
      on such other terms and conditions as are not inconsistent with the purposes
      and
      provisions of the Plan, as the Committee, in its discretion, may from time
      to
      time determine. Each Agreement covering a grant of Restricted Stock shall
      specify the number of shares of Restricted Stock granted, the Date of Grant,
      the
      price, if any, to be paid by the Participant for such Restricted Stock, the
      vesting schedule (as provided for in Section 3.2 hereof) and any Performance
      Goals for such Restricted Stock and any other terms that the Committee deems
      appropriate. 

     

    Section
      3.2     Vesting.
      

     

    The
      Committee shall establish the vesting schedule applicable to Restricted Stock
      granted hereunder, which vesting schedule shall specify the period of time,
      the
      increments in which a Participant shall vest in the Restricted Stock and/or
      any
      applicable Performance Goal requirements, subject to any restrictions that
      the
      Committee shall determine and specify in the applicable Agreement, provided
      that
      time-based vesting schedules (other than time based vesting schedules following
      the achievement of specific performance goals) shall remain in effect (in whole
      or in part) at least until the third anniversary of the Date of Grant, except
      as
      provided in the applicable Agreement in the case of certain terminations of
      Service or a Change of Control. 

     

    Section
      3.3     Rights
      and Restrictions Governing Restricted Stock. 

     

    The
      Participant shall have all rights of a holder as to such shares of Common Stock
      (including, to the extent applicable, the right to receive dividends and to
      vote), subject to the following restrictions: (a) none of the Restricted Stock
      may be sold, transferred, assigned, pledged or otherwise encumbered or disposed
      of until such shares have vested; and (b) except as otherwise provided in
      Section 3.6 below, all unvested Restricted Stock shall be immediately forfeited
      upon a Participant’s termination of Service with the Company or any Affiliate
      for any reason or the Participant’s death, Retirement or Permanent
      Disability.

     

    Section
      3.4     Adjustment
      with Respect to Restricted Stock. 

     

    Any
      other
      provision of the Plan to the contrary notwithstanding, the Committee may, in
      its
      discretion, at any time accelerate the date or dates on which Restricted Stock
      vest. The Committee may, in its sole discretion, remove any and all restrictions
      on such Restricted Stock whenever it may determine that, by reason of changes
      in
      applicable law, the rules of any stock exchange on which the Common Stock is
      listed or other changes in circumstances arising after the Date of Grant, such
      action is appropriate.

     

    
      
        
        

      

      
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    Section
      3.5     Delivery
      of Restricted Stock. 

     

    On
      the
      date on which Restricted Stock vest, all restrictions contained in the Agreement
      covering such Restricted Stock and in the Plan shall lapse as to such Restricted
      Stock. Restricted Stock Awards issued hereunder may be evidenced in such manner
      as the Committee in its discretion shall deem appropriate, including, without
      limitation, book-entry registration or issuance of one or more stock
      certificates. If stock certificates are issued, such certificates shall be
      delivered to the Participant or such certificates shall be credited to a
      brokerage account if the Participant so directs; provided, however, that such
      certificates shall bear such legends as the Committee, in its sole discretion,
      may determine to be necessary or advisable in order to comply with applicable
      federal or state securities laws.

     

    Section
      3.6     Termination
      of Service. 

     

    The
      Committee shall determine and specify in the applicable Agreement (or any
      employment agreement applicable to the Participant) the effect of a termination
      of Service on the rights and benefits in respect of each Restricted Stock
      granted thereunder and in so doing may make distinctions based upon the cause
      of
      termination.

     

    Section
      3.7     Grants
      of Unrestricted Stock. 

     

    Subject
      to the limit set forth in the proviso in Section 1.5(b) (as such limit may
      be
      adjusted under Article VII hereof), the Committee may, in its sole discretion,
      make awards of unrestricted Common Stock to eligible Service Providers in
      recognition of outstanding achievements and performance; provided, that, such
      awards of unrestricted Common Stock shall be in lieu of salary or cash bonuses
      otherwise payable to the Service Providers. 

     

    ARTICLE
      IV

     

    PROVISIONS
      APPLICABLE TO RESTRICTED STOCK UNITS 

     

    Section
      4.1     Grants
      of Restricted Stock Units. 

     

    The
      Committee may from time to time grant Restricted Stock Units on the terms and
      conditions set forth in the Plan and on such other terms and conditions as
      are
      not inconsistent with the purposes and provisions of the Plan as the Committee,
      in its discretion, may from time to time determine. Each Restricted Stock Unit
      awarded to a Participant shall correspond to one share of Common Stock. Each
      Agreement covering a grant of Restricted Stock Units shall specify the number
      of
      Restricted Stock Units granted, the vesting schedule (as provided for in Section
      4.2 hereof) for such Restricted Stock Units and any Performance Goals and any
      other terms that the Committee deems appropriate. 

     

    Section
      4.2     Vesting.
      

     

    The
      Committee shall establish the vesting schedule applicable to Restricted Stock
      Units granted hereunder, which vesting schedule shall specify the period of
      time, the increments in which a Participant shall vest in the Restricted Stock
      Units and/or any applicable Performance Goal requirements, subject to any
      restrictions that the Committee shall determine and specify in the applicable
      Agreement, provided that time-based vesting schedules (other than time based
      vesting schedules following the achievement of specific performance goals)
      shall
      remain in effect (in whole or in part) at least until the third anniversary
      of
      the Date of Grant, except as provided in the applicable Agreement in the case
      of
      certain terminations of Service or a Change of Control. 

     

    Section
      4.3     Adjustment
      with Respect to Restricted Stock Units. 

     

    Any
      other
      provision of the Plan to the contrary notwithstanding, the Committee may, in
      its
      discretion, at any time accelerate the date or dates on which Restricted Stock
      Units vest. 

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Section
      4.4     Settlement
      of Restricted Stock Units. 

     

    On
      the
      date on which Restricted Stock Units vest (unless another date is specified
      by
      the Committee in the Agreement), all restrictions contained in the Agreement
      covering such Restricted Stock Units and in the Plan shall lapse as to such
      Restricted Stock Units and the Restricted Stock Units will be payable in cash
      equal to the Fair Market Value of the shares subject to such Restricted Stock
      Units or in shares of Common Stock or in a combination of cash or shares of
      Common Stock. Restricted Stock Units paid in Common Stock may be evidenced
      in
      such manner as the Committee in its discretion shall deem appropriate,
      including, without limitation, book-entry registration or issuance of one or
      more stock certificates. If stock certificates are issued, such certificates
      shall be delivered to the Participant or such certificates shall be credited
      to
      a brokerage account if the Participant so directs; provided, however, that
      such
      certificates shall bear such legends as the Committee, in its sole discretion,
      may determine to be necessary or advisable in order to comply with applicable
      federal or state securities laws. 

     

    Section
      4.5     Termination
      of Service. 

     

    The
      Committee shall determine and specify in the applicable Agreement (or any
      employment agreement applicable to the Participant) the effect of a termination
      of Service on the rights and benefits in respect of each Restricted Stock Unit
      granted thereunder and in so doing may make distinctions based upon the cause
      of
      termination.

     

    ARTICLE
      V

     

    PERFORMANCE
      AWARDS 

     

    Section
      5.1     Grants
      of Performance Awards. 

     

    The
      Committee may from time to time grant to eligible employees or other Service
      Providers Performance Awards consisting of Performance Shares or Performance
      Units on the terms and conditions set forth in the Plan and on such other terms
      and conditions as are not inconsistent with the purposes and provisions of
      the
      Plan, as the Committee, in its discretion, may from time to time determine.
      Performance Awards may be granted either alone or in addition to other Awards
      made under the Plan. 

     

    Section
      5.2     Performance
      Goals. 

     

    Unless
      otherwise determined by the Committee, the grant, vesting and/or exercisability
      of Performance Awards shall be conditioned, in whole or in part, on the
      attainment of performance targets, in whole or in part, related to one or more
      performance goals over a Performance Period. For any such Performance Awards
      that are intended to qualify for the Section 162(m) Exception, the performance
      targets on which the grant, vesting and/or exercisability are conditioned shall
      be selected by the Committee from among the following goals, on a GAAP or
      non-GAAP basis (the “Section 162(m) Performance Goals”): Net income, adjusted
      net income, EBITDA, adjusted EBITDA, OIBDA, adjusted OIBDA, operating income,
      adjusted operating income, free cash flow, net earnings, net earnings from
      continuing operations, earnings per share, adjusted earnings per share, revenue,
      net revenue, operating revenue, total stockholder return, share price, return
      on
      equity, return in excess of cost of capital, profit in excess of cost of
      capital, return on assets, return on invested capital, net operating profit
      after tax, operating margin, profit margin or any combination thereof. A Section
      162(m) Performance Goal may be stated as a combination of one or more goals
      (e.g., free cash flow return on invested capital), and on an absolute or
      relative basis. 

     

    In
      addition, for any Awards not intended to qualify for the Section 162(m)
      Exception, the Committee may establish performance targets based on other
      performance goals as it deems appropriate (together with the Section 162(m)
      Performance Goals, the “Performance Goals”). The Performance Goals may be
      described in terms of objectives that are related to the individual Participant
      or objectives that are Company-wide or related to a Affiliate, division,
      department, region, function or business unit and may be measured on an absolute
      or cumulative basis or on the basis of percentage of improvement over time,
      and
      may be measured in terms of Company performance (or performance of the
      applicable Affiliate, division, department, region, function or business unit)
      or measured relative to selected peer companies or a market index. 

     

    Section
      5.3     Performance
      Goals on Awards other than Performance Awards. 

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    The
      Committee, in its sole discretion, may also require that the grant, vesting
      and/or exercisability of Awards other than Performance Awards be conditioned,
      in
      whole or in part, on the attainment of performance targets, in whole or in
      part,
      related to Performance Goals over a Performance Period, as described in Section
      5.2. 

     

    Section
      5.4     Discretion
      to Reduce Awards. 

     

    The
      Committee retains the right to reduce any Award below the maximum amount that
      could be paid based on the degree to which the Performance Goals related to
      such
      Award were attained. The Committee may not increase any Award intended to
      qualify for the Section 162(m) Exception in any manner that would adversely
      affect the treatment of the Award under the Section 162(m) Exception.

     

    Section
      5.5     Adjustment
      of Calculation of Performance Goals. 

     

    In
      the
      event that, during any Performance Period, any recapitalization, reorganization,
      merger, acquisition, divestiture, consolidation, spin-off, combination,
      liquidation, dissolution, sale of assets or other similar corporate transaction
      or event, or any other extraordinary event or circumstance occurs which has
      the
      effect, as determined by the Committee, in its sole and absolute discretion,
      of
      distorting the applicable performance criteria involving the Company, including,
      without limitation, changes in accounting standards, the Committee may adjust
      or
      modify, as determined by the Committee, in its sole and absolute discretion,
      the
      calculation of the Performance Goals, to the extent necessary to prevent
      reduction or enlargement of the Participants’ Awards under the Plan for such
      Performance Period attributable to such transaction, circumstance or event.
      All
      determinations that the Committee makes pursuant to this Section 5.5 shall
      be
      conclusive and binding on all persons for all purposes. 

     

    ARTICLE
      VI

     

    DIVIDEND
      EQUIVALENTS AND OTHER AWARDS 

     

    Section
      6.1     Dividend
      Equivalents. 

     

    Subject
      to the provisions of this Plan and any Agreement, the recipient of an Award
      (including, without limitation, any Award deferred pursuant to Section 8.9)
      may,
      if so determined by the Committee, be entitled to receive, currently or on
      a
      deferred basis, interest or dividends or Dividend Equivalents, with respect
      to
      the number of shares of Common Stock covered by the Award, as determined by
      the
      Committee, in its sole discretion, and the Committee may provide that such
      amounts (if any) shall be deemed to have been reinvested in additional shares
      of
      Common Stock or otherwise reinvested and/or shall be subject to the same terms
      and conditions (including vesting and forfeiture provisions) as the related
      Award. 

     

    Section
      6.2     Other
      Awards. 

     

    The
      Committee shall have the authority to specify the terms and provisions of other
      forms of equity-based or equity-related awards not described above that the
      Committee determines to be consistent with the purpose of the Plan and the
      interests of the Company. Other Awards may also include cash payments under
      the
      Plan which may be based on one or more criteria determined by the Committee
      that
      are unrelated to the value of Common Stock and that may be granted in tandem
      with, or independent of, Awards granted under the Plan. 

     

    ARTICLE
      VII

     

    EFFECT
      OF CERTAIN CORPORATE CHANGES 

     

    In
      the
      event of a merger, consolidation, stock-split, reverse stock-split, dividend,
      distribution, combination, reclassification, reorganization, consolidation,
      split-up, spin-off, recapitalization or Change in Control that changes the
      character or amount of the Common Stock, an extraordinary cash dividend or
      any
      other changes in the corporate structure, equity securities or capital structure
      of the Company (“Corporate Transactions”), the Committee shall make such
      adjustments, if any, to (i) the number and kind of securities subject to any
      outstanding Award, (ii) the exercise price or purchase price, if any, of any
      outstanding Award, and (iii) the maximum number and kind of securities referred
      to in Sections 1.5(a) and (b) and Sections 1.6(a) and (b) of the Plan, in each
      case, as it deems appropriate. The Committee will also make such other
      adjustments in order to preserve the benefits or potential benefits intended
      hereunder. All determinations that the Committee makes pursuant to this Article
      VII shall be conclusive and binding on all persons for all purposes. The
      Committee need not treat all types of Awards, or all Awards within the same
      type
      of Award, in the same manner under this Article VII.

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    Subject
      to the last sentence of this Article VII, upon the occurrence of Corporate
      Transaction that involves a Change of Control: 

    

    (i)
      all
      Options and SARs and all outstanding shares of Restricted Stock shall be deemed
      to have vested, and all Stock Units shall be deemed to have vested and the
      shares of Stock subject thereto shall be delivered, immediately prior to the
      occurrence of such Corporate Transaction, and 

    

    (ii)
      either of the following two actions shall be taken: 

    

    (A)
      fifteen days prior to the scheduled consummation of a Corporate Transaction,
      all
      Options and SARs outstanding hereunder shall become immediately exercisable,
      or

    

    (B)
      the
      Board may elect, in its sole discretion, to cancel any outstanding Awards of
      Options, Restricted Stock, Stock Units, and/or SARs and pay or deliver, or
      cause
      to be paid or delivered, to the holder thereof an amount in cash or securities
      having a value (as determined by the Board acting in good faith), in the case
      of
      Restricted Stock or Stock Units, equal to the formula or fixed price per share
      paid to holders of shares of Stock and, in the case of Options or SARs, equal
      to
      the product of the number of shares of Stock subject to the Option or SAR (the
      “Award Shares”) multiplied by the amount, if any, by which (I) the formula or
      fixed price per share paid to holders of shares of Stock pursuant to such
      transaction exceeds (II) the Option Price or SAR Exercise Price applicable
      to
      such Award Shares. 

    

    With
      respect to the Company's establishment of an exercise window, (i) any exercise
      of an Option or SAR during such fifteen-day period shall be conditioned upon
      the
      consummation of the event and shall be effective only immediately before the
      consummation of the event, and (ii) upon consummation of any Corporate
      Transaction the Plan, and all outstanding but unexercised Options and SARs
      shall
      terminate. The Board shall send written notice of an event that will result
      in
      such a termination to all individuals who hold Options and SARs not later than
      the time at which the Company gives notice thereof to its stockholders. The
      foregoing acceleration of vesting shall not apply if provision is made in
      writing in connection with such Corporate Transaction for the assumption or
      continuation of the Options, SARs, Stock Units and Restricted Stock theretofore
      granted, or for the substitution for such Options, SARs, Stock Units and
      Restricted Stock for new common stock options and stock appreciation rights
      and
      new common stock units and restricted stock relating to the stock of a successor
      entity, or a parent or subsidiary thereof, with appropriate adjustments as
      to
      the number of shares (disregarding any consideration that is not common stock)
      and option and stock appreciation right exercise prices, in which event the
      Plan, Options, SARs, Stock Units and Restricted Stock theretofore granted shall
      continue in the manner and under their respective terms, provided, however,
      if
      that if a Participant is terminated without Cause within one year of the
      consummation of such Corporate Transaction, such Options, SARs, Stock Units
      and
      Restricted Stock shall be fully vested and, if applicable, exercisable for
      the
      period provided in the Participant’s Agreement or such longer period as the
      Committee may authorize.

     

    ARTICLE
      VIII

     

    MISCELLANEOUS
      

     

    Section
      8.1     No
      Rights to Awards or Continued Employment or other Service.

     

    Nothing
      in the Plan or in any Agreement, nor the grant of any Award under the Plan,
      shall confer upon any individual any right to be employed by or to continue
      in
      the employment or other Service of the Company or any Affiliate thereof, nor
      to
      be entitled to any remuneration or benefits not set forth in the Plan or such
      Agreement, including the right to receive any future Awards under the Plan
      or
      any other plan of the Company or any Affiliate thereof or interfere with or
      limit the right of the Company or any Affiliate thereof to modify the terms
      of
      or terminate such individual’s employment or other Service at any time for any
      reason. 

     

    Section
      8.2     Restriction
      on Transfer. 

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    The
      rights of a Participant with respect to any Award shall be exercisable during
      the Participant’s lifetime only by the Participant and shall not be transferable
      by the Participant to whom such Award is granted, except by will or the laws
      of
      descent and distribution, provided that the Committee may permit other
      transferability, subject to any conditions and limitations that it may, in
      its
      sole discretion, impose. 

     

    Section
      8.3     Taxes.
      

     

    The
      Company or an Affiliate thereof, as appropriate, shall have the right to deduct
      from all payments made under the Plan to a Participant or to a Participant’s
      estate any federal, state, local or other taxes required by law to be withheld
      with respect to such payments. The Committee, in its discretion, may require,
      as
      a condition to the exercise or settlement of any Award or delivery of any
      certificate(s) for shares of Common Stock, that an additional amount be paid
      in
      cash equal to the amount of any federal, state, local or other taxes required
      to
      be withheld as a result of such exercise or settlement. In addition, the
      Committee may establish procedures to allow Participants to satisfy such
      withholding obligations through a net share settlement procedure or the
      withholding of shares subject to the applicable Award, or through a “cashless
      exercise” procedure as described in Section 2.4. Any Participant who makes an
      election under Section 83(b) of the Code to have his Award taxed in accordance
      with such election must give notice to the Company of such election immediately
      upon making a valid election in accordance with the rules and regulations of
      the
      Code. Any such election must be made in accordance with the rules and
      regulations of the Code. 

     

    Section
      8.4     Stockholder
      Rights. 

     

    No
      Award
      under the Plan shall entitle a Participant or a Participant’s estate or
      permitted transferee to any rights of a holder of shares of Common Stock of
      the
      Company, except as provided in Article III with respect to Restricted Stock
      or
      when and until the Participant, the Participant’s estate or the permitted
      transferee is registered on the books and records of the Company as a
      stockholder with respect to the exercise or settlement of such Award.

     

    Section
      8.5     No
      Restriction on Right of Company to Effect Corporate Changes.

     

    The
      Plan
      shall not affect in any way the right or power of the Company or its
      stockholders to make or authorize any or all adjustments, recapitalizations,
      reorganizations or other changes in the Company’s capital structure or its
      business, or any merger or consolidation of the Company, or any issue of stock
      or of options, warrants or rights to purchase stock or of bonds, debentures,
      preferred or prior preference stock whose rights are superior to or affect
      the
      Common Stock or the rights thereof or which are convertible into or exchangeable
      for Common Stock, or the dissolution or liquidation of the Company, or any
      sale
      or transfer of all or any part of its assets or business, or any other corporate
      act or proceeding, whether of a similar character or otherwise. 

     

    Section
      8.6     Source
      of Payments. 

     

    The
      general funds of the Company shall be the sole source of cash settlements of
      Awards under the Plan and payments of Appreciation Value and the Company shall
      not have any obligation to establish any separate fund or trust or other
      segregation of assets to provide for payments under the Plan. Nothing contained
      in this Plan, and no action taken pursuant to its provisions, shall create
      or be
      construed to create a trust of any kind, or a fiduciary relationship, between
      the Company and a Participant or any other person. To the extent a person
      acquires any rights to receive payments hereunder from the Company, such rights
      shall be no greater than those of an unsecured creditor. 

     

    Section
      8.7     Exercise
      Periods Following Termination of Service. 

     

    For
      the
      purposes of determining the dates on which Awards may be exercised following
      a
      termination of Service or following the Retirement, death or Permanent
      Disability of a Participant, the day following the date of such event shall
      be
      the first day of the exercise period and the Award may be exercised up to and
      including the last business day falling within the exercise period. Thus, if
      the
      last day of the exercise period is not a business day, then the last date an
      Award may be exercised is the last business day preceding the end of the
      exercise period. 

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    Although
      the Committee shall determine and specify in the applicable Agreement (or any
      employment agreement applicable to the Participant) the effect of a termination
      of Service on the rights and benefits in respect of each Restricted Stock Unit
      granted thereunder, and in so doing may make distinctions based upon the cause
      of termination, in most cases: 

     

    (a) following
      a termination of service other than Retirement, death or Permanent Disability,
      the Participant  will
      have
      ninety days to exercise his rights or benefits in respect of each
      Award;

     

    (b) for
      death
      or Permanent Disability, the Participant or his beneficiary may exercise rights
      or benefits in  respect
      of each Awards within one year; and 

     

    (c) in
      cases
      of Retirement, Participant will have three years to exercise his rights or
      benefits in respect of an Award. 

     

    Section
      8.8     Breach
      of Agreements. 

     

    The
      Committee may include in any Agreement a provision requiring the Participant
      to
      return gains (as defined by the Committee) realized on Awards made under the
      Plan in the event the Committee determines that a material breach of specified
      obligations under one or more written agreements between a Participant and
      the
      Company has occurred during the one year period after termination of the
      Participant’s Service with the Company or an Affiliate. 

     

    Section
      8.9     Deferral
      of
      Awards. 

     

    The
      Committee may establish procedures pursuant to which the payment of any Award
      may be deferred. 

     

    Section
      8.10     Employment
      of Participant by Affiliate. 

     

    Unless
      the Committee determines otherwise, the Service of a Participant who works
      for
      an Affiliate shall terminate, for Plan purposes, on the date on which the
      Participant’s employing company ceases to be an Affiliate. 

     

    Section
      8.11     Registration
      Restrictions. 

     

    A
      Stock
      Option or Stock Appreciation Right shall not be exercisable, no transfer of
      shares of Common Stock shall be made to any Participant, and any attempt to
      exercise a Stock Option or Stock Appreciation Right or to transfer any such
      shares shall be void and of no effect, unless and until (i) a registration
      statement under the Securities Act of 1933, as amended, has been duly filed
      and
      declared effective pertaining to the shares of Common Stock subject to such
      Stock Option or Stock Appreciation Right, and the shares of Common Stock subject
      to such Stock Option or Stock Appreciation Right have been duly qualified under
      applicable federal or state securities or blue sky laws or (ii) the Committee,
      in its sole discretion, determines, or the Participant, upon the request of
      the
      Committee, provides an opinion of counsel satisfactory to the Committee, that
      such registration or qualification is not required as a result of the
      availability of an exemption from registration or qualification under such
      laws.
      Without limiting the foregoing, if at any time the Committee shall determine,
      in
      its sole discretion, that the listing, registration or qualification of the
      shares of Common Stock subject to a Stock Option, Stock Appreciation Right
      or
      other Award is required under any federal or state law or on any securities
      exchange or the consent or approval of any U.S. or foreign governmental
      regulatory body is necessary or desirable as a condition of, or in connection
      with, delivery or purchase of such shares under a Stock Option, Stock
      Appreciation Right or other Award, such Stock Option or Stock Appreciation
      Right
      shall not be exercised in whole or in part, and shares of Common Stock shall
      not
      be delivered pursuant to the Award, unless and until such listing, registration,
      qualification, consent or approval shall have been effected or obtained free
      of
      any conditions not acceptable to the Committee. 

     

    ARTICLE
      IX

     

    AMENDMENT
      AND TERMINATION 

     

    The
      Plan
      may be terminated and may be altered, amended, suspended or terminated at any
      time, in whole or in part, by the Board; provided, however, that no alteration
      or amendment will be effective without stockholder approval if such approval
      is
      required by law or under the rules of The Nasdaq Stock Market or other principal
      stock exchange on which the Common Stock is listed. No termination or amendment
      of the Plan may, without the consent of the Participant to whom an Award has
      been made, materially adversely affect the rights of such Participant in such
      Award. Unless previously terminated pursuant to this Article IX, the Plan shall
      terminate on the tenth (10th)
      anniversary of the Effective Date, and no further Awards may be granted
      hereunder after such date. 

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      X

     

    INTERPRETATION
      

     

    Section
      10.1     Governmental
      Regulations. 

     

    The
      Plan,
      and all Awards hereunder, shall be subject to all applicable rules and
      regulations of governmental or other authorities. 

     

    Section
      10.2     Headings.
      

     

    The
      headings of articles and sections herein are included solely for convenience
      of
      reference and shall not affect the meaning of any of the provisions of the
      Plan.

     

    Section
      10.3     Governing
      Law. 

     

    The
      validity and construction of this Plan and the instruments evidencing the Awards
      hereunder shall be governed by the laws of the State of Delaware, other than
      any
      conflicts or choice of law rule or principle that might otherwise refer
      construction or interpretation of this Plan and the instruments evidencing
      the
      Awards granted hereunder to the substantive laws of any other
      jurisdiction.

     

    Section
      10.4     Parachute
      Taxes. 

     

    Notwithstanding
      any other provision of this Plan, unless an agreement, contract, or
      understanding heretofore or hereafter entered into by a Participant with the
      Company or any Affiliate (an “Other Agreement”) directly or indirectly modifies
      or excludes application of this paragraph, including by specifically addressing
      Section 280G of the Code and/or the treatment with respect to any payment or
      benefit to the Participant that could be considered a “parachute payment” within
      the meaning of Section 280G(b)(2) of the Code as then in effect (a “Parachute
      Payment”), if the Participant is a “disqualified individual,” as defined in
      Section 280G(c) of the Code, any Award held by that Participant and any right
      to
      receive any payment or other benefit under this Plan shall not become
      exercisable or vested (i) to the extent that such right to exercise, vesting,
      payment, or benefit, taking into account all other rights, payments, or benefits
      to or for the Participant under this Plan, all Other Agreements, and any formal
      or informal plan or other arrangement for the direct or indirect provision
      of
      compensation to the Participant (including groups or classes of Participants
      or
      beneficiaries of which the Participant is a member), whether or not such
      compensation is deferred, is in cash, or is in the form of a benefit to or
      for
      the Participant (“Benefit Arrangements”), would cause any payment or benefit to
      the Participant under this Plan to be considered a Parachute Payment and (ii)
      if, as a result of receiving a Parachute Payment, the aggregate after-tax
      amounts received by the Participant from the Company under this Plan, all Other
      Agreements, and all Benefit Arrangements would be less than the maximum
      after-tax amount that could be received by the Participant without causing
      any
      such payment or benefit to be considered a Parachute Payment. In the event
      that
      the receipt of any such right to exercise, vesting, payment, or benefit under
      this Plan, in conjunction with all other rights, payments, or benefits to or
      for
      the Participant under any Other Agreement or any Benefit Arrangement would
      cause
      the Participant to be considered to have received a Parachute Payment under
      this
      Plan that would have the effect of decreasing the after-tax amount received
      by
      the Participant as described in clause (ii) of the preceding sentence, then
      the
      Participant shall have the right, in the Participant’s sole discretion, to
      designate those rights, payments, or benefits under this Plan, any Other
      Agreements, and any Benefit Arrangements that should be reduced or eliminated
      so
      as to avoid having the payment or benefit to the Participant under this Plan
      be
      deemed to be a Parachute Payment. 

     

    Section
      10.5     Section
      409A of the Code. 

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    To
      the
      extent that the Committee determines that a Participant would be subject to
      the
      additional 20% tax imposed on certain deferred compensation arrangements
      pursuant to Section 409A of the Internal Revenue Code of 1986, as amended (the
      “Code”), as a result of any provision of any Award granted under this Plan, such
      provision shall be deemed amended to the minimum extent necessary to avoid
      application of such additional tax. The nature of any such amendment shall
      be
      determined by the Committee. 

     

    ARTICLE
      XI

     

    EFFECTIVE
      DATE AND STOCKHOLDER APPROVAL 

     

    The
      Plan
      shall be effective as of the Effective Date, subject to approval of the Plan
      by
      the Company’s stockholders within one year of the Effective Date. Upon approval
      of the Plan by the stockholders of the Company as set forth above, all Awards
      made under the Plan on or after the Effective Date shall be fully effective
      as
      if the stockholders of the Company had approved the Plan on the Effective Date.
      If the stockholders fail to approve the Plan within one year after the Effective
      Date, any Awards made hereunder shall be null and void and of no effect.

     

     

     

    
      
        
        

      

      
        17c48652_ex10-1.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.1

FIRST AMENDMENT

     FIRST AMENDMENT, dated as of May 21, 2007 (this “First Amendment”), to the Employment Agreement, dated as of November 8, 2004 (the
“Agreement”), between SIRIUS SATELLITE RADIO INC., a Delaware corporation (the “Company”), and PATRICK L.
DONNELLY (the “Executive”). 

WITNESSETH:

      WHEREAS, the Company and the Executive previously entered into the Agreement, which agreement by its terms expired on April 30, 2007; and  

     WHEREAS, since that date, the Executive’s employment with the Company has continued
  on the same terms and conditions as set forth in the Agreement, and the Company and the Executive jointly desire to enter into this First Amendment to extend the terms of the Agreement and to amend certain provisions of the Agreement in the manner
  provided for in this First Amendment;  

     NOW, THEREFORE, for valuable consideration,
    the receipt and sufficiency of which are hereby acknowledged, and in consideration
    of the premises contained herein, the Company and the Executive hereby agree
    as follows: 

      1. Amendment
      of Section 3 (Term) of the Agreement. Section
      3 of the Agreement is hereby amended by deleting “April 30, 2007” and
      substituting in lieu thereof “April
      30, 2010.” 

      2. Amendment of Section 4 (Compensation) of the Agreement. Section 4(a) of the Agreement is hereby amended by deleting the figure “$358,000” and substituting in
        lieu thereof “$500,000,” effective as of June 1, 2007. 

      3. Amendment
of Section 6 (Termination) of the Agreement. A
new Section 6(g) is hereby added to the Agreement to read as follows:
“Notwithstanding anything herein to the contrary, if at the time of the
Executive’s termination of employment with the Company, the Executive is
a “specified employee” as defined in Section 409A of the Internal Revenue
Code of  1986, as amended (the “Code”);
and the deferral of the commencement of any payments or benefits otherwise payable
hereunder as a result of such termination of employment is  necessary in order
to prevent any accelerated or additional tax under Section 409A of the Code,
then the Company will defer the commencement of the payment of any such payments
or benefits hereunder (without any reduction in such payments or  benefits ultimately
paid or provided to the Executive) until the date that is six months following
the Executive’s termination of employment with the Company (or the earliest
date as is permitted under Section 409A of the Code). The Company  shall consult
with the Executive in good faith regarding the implementation of the provisions
of this Section 6(g); provided that
neither the Company nor any of its employees or  representatives shall have any
liability to the Executive with respect thereto.”  

      4. No
      Other Amendments. Except as expressly amended,
      modified and supplemented by this First Amendment,  the provisions of the
      Agreement are extended, and shall continue in full force and effect. 

2

      5. Governing Law. This First Amendment shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York.

      6. Counterparts.
This First Amendment may be executed in counterparts, all of which shall be considered
one and the same agreement, and shall  become effective when one or more counterparts
have been signed by each of the parties and delivered to the other party. 

      7. Entire Agreement. This First Amendment represents the entire agreement of the Company and the Executive with respect to the subject matter hereof, and there are no
promises, undertakings, representations or warranties by the parties hereto relative to the subject matter hereof not expressly set forth or referred to herein. 

      IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written. 

	 
		SIRIUS SATELLITE RADIO INC.
	 

	
	 	
By: 
		
/s/ John H. Schultz 
		
	 	 

		
John H. Schultz 
		 
	 
	 	Senior Vice President,	 
	 	 

		
Human Resources 
		 

	 	 
	
Accepted and Agreed: 
		 
	 	 
	
/s/ Patrick L. Donnelly 
		
	
PATRICK L. DONNELLY

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