Document:

exv4w3

 

Exhibit 4.3

Sling Media, Inc.

2004 Stock Plan

Adopted on September 1, 2004

(As amended on October 7, 2004 and January 22, 2006)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page
	SECTION 1. ESTABLISHMENT AND PURPOSE
	 	 	1	 
	 
	 	 	 	 
	SECTION 2. ADMINISTRATION
	 	 	1	 
	(a) Committees of the Board of Directors
	 	 	1	 
	(b) Authority of the Board of Directors
	 	 	1	 
	 
	 	 	 	 
	SECTION 3. ELIGIBILITY
	 	 	1	 
	(a) General Rule
	 	 	1	 
	(b) Ten-Percent Stockholders
	 	 	1	 
	 
	 	 	 	 
	SECTION 4. STOCK SUBJECT TO PLAN
	 	 	2	 
	(a) Basic Limitation
	 	 	2	 
	(b) Additional Shares
	 	 	2	 
	 
	 	 	 	 
	SECTION 5. TERMS AND CONDITIONS OF AWARDS OR SALES
	 	 	2	 
	(a) Stock Purchase Agreement
	 	 	2	 
	(b) Duration of Offers and Nontransferability of Rights
	 	 	2	 
	(c) Purchase Price
	 	 	2	 
	(d) Withholding Taxes
	 	 	2	 
	(e) Restrictions on Transfer of Shares and Minimum Vesting
	 	 	3	 
	 
	 	 	 	 
	SECTION 6. TERMS AND CONDITIONS OF OPTIONS
	 	 	3	 
	(a) Stock Option Agreement
	 	 	3	 
	(b) Number of Shares
	 	 	3	 
	(c) Exercise Price
	 	 	3	 
	(d) Exercisability
	 	 	3	 
	(e) Basic Term
	 	 	4	 
	(f) Termination of Service (Except by Death)
	 	 	4	 
	(g) Leaves of Absence
	 	 	4	 
	(h) Death of Optionee
	 	 	4	 
	(i) Restrictions on Transfer of Shares and Minimum Vesting
	 	 	5	 
	(j) Transferability of Options
	 	 	5	 
	(k) Withholding Taxes
	 	 	5	 
	(l) No Rights as a Stockholder
	 	 	6	 
	(m) Modification, Extension and Assumption of Options
	 	 	6	 
	 
	 	 	 	 
	SECTION 7. PAYMENT FOR SHARES
	 	 	6	 
	(a) General Rule
	 	 	6	 
	(b) Surrender of Stock
	 	 	6	 
	(c) Services Rendered
	 	 	6	 
	(d) Promissory Note
	 	 	6	 
	(e) Exercise/Sale

	 	 	6	 
	(f) Exercise/Pledge
	 	 	7	 

i 

 

	 	 	 	 	 
	 	 	 	Page
	SECTION 8. ADJUSTMENT OF SHARES
	 	 	7	 
	(a) General
	 	 	7	 
	(b) Mergers and Consolidations
	 	 	7	 
	(c) Reservation of Rights
	 	 	8	 
	 
	 	 	 	 
	SECTION 9. SECURITIES LAW REQUIREMENTS
	 	 	8	 
	(a) General
	 	 	8	 
	(b) Financial Reports
	 	 	8	 
	 
	 	 	 	 
	SECTION 10. NO RETENTION RIGHTS
	 	 	9	 
	 
	 	 	 	 
	SECTION 11. DURATION AND AMENDMENTS
	 	 	9	 
	(a) Term of the Plan
	 	 	9	 
	(b) Right to Amend or Terminate the Plan
	 	 	9	 
	(c) Effect of Amendment or Termination
	 	 	9	 
	 
	 	 	 	 
	SECTION 12. DEFINITIONS
	 	 	9	 

ii 

 

Sling Media, Inc. 2004 Stock Plan

SECTION 1. ESTABLISHMENT AND PURPOSE.

     The purpose of the Plan is to offer selected persons an opportunity to acquire a proprietary
interest in the success of the Company, or to increase such interest, by purchasing Shares of the
Company’s Stock. The Plan provides both for the direct award or sale of Shares and for the grant
of Options to purchase Shares. Options granted under the Plan may include Nonstatutory Options as
well as ISOs intended to qualify under Section 422 of the Code.

     Capitalized terms are defined in Section 12.

SECTION 2. ADMINISTRATION.

     (a) Committees of the Board of Directors. The Plan may be administered by one or more
Committees. Each Committee shall consist of one or more members of the Board of Directors who have
been appointed by the Board of Directors. Each Committee shall have such authority and be
responsible for such functions as the Board of Directors has assigned to it. If no Committee has
been appointed, the entire Board of Directors shall administer the Plan. Any reference to the
Board of Directors in the Plan shall be construed as a reference to the Committee (if any) to whom
the Board of Directors has assigned a particular function.

     (b) Authority of the Board of Directors. Subject to the provisions of the Plan, the Board of
Directors shall have full authority and discretion to take any actions it deems necessary or
advisable for the administration of the Plan. All decisions, interpretations and other actions of
the Board of Directors shall be final and binding on all Purchasers, all Optionees and all persons
deriving their rights from a Purchaser or Optionee.

SECTION 3. ELIGIBILITY.

     (a) General Rule. Only Employees, Outside Directors and Consultants shall be eligible for the
grant of Nonstatutory Options or the direct award or sale of Shares. Only Employees shall be
eligible for the grant of ISOs.

     (b) Ten-Percent Stockholders. A person who owns more than 10% of the total combined voting
power of all classes of outstanding stock of the Company, its Parent or any of its Subsidiaries
shall not be eligible for designation as an Optionee or Purchaser unless (i) the Exercise Price is
at least 110% of the Fair Market Value of a Share on the date of grant, (ii) the Purchase Price (if
any) is at least 100% of the Fair Market Value of a Share and (iii) in the case of an ISO, such ISO
by its terms is not exercisable after the expiration of five years from the date of grant. For
purposes of this Subsection (b), in determining stock ownership, the attribution rules of
Section 424(d) of the Code shall be applied.

 

 

SECTION 4. STOCK SUBJECT TO PLAN.

     (a) Basic Limitation. Not more than 4,017,0801 Shares may be issued under the Plan
(subject to Subsection (b) below and Section 8(a)). The number of Shares that are subject to
Options or other rights outstanding at any time under the Plan shall not exceed the number of
Shares that then remain available for issuance under the Plan. The Company, during the term of the
Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements
of the Plan. Shares offered under the Plan may be authorized but unissued Shares or treasury
Shares.

     (b) Additional Shares. In the event that Shares previously issued under the Plan are
reacquired by the Company, such Shares shall be added to the number of Shares then available for
issuance under the Plan. In the event that an outstanding Option or other right for any reason
expires or is canceled, the Shares allocable to the unexercised portion of such Option or other
right shall be added to the number of Shares then available for issuance under the Plan.

SECTION 5. TERMS AND CONDITIONS OF AWARDS OR SALES.

     (a) Stock Purchase Agreement. Each award or sale of Shares under the Plan (other than upon
exercise of an Option) shall be evidenced by a Stock Purchase Agreement between the Purchaser and
the Company. Such award or sale shall be subject to all applicable terms and conditions of the
Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan
and which the Board of Directors deems appropriate for inclusion in a Stock Purchase Agreement.
The provisions of the various Stock Purchase Agreements entered into under the Plan need not be
identical.

     (b) Duration of Offers and Nontransferability of Rights. Any right to acquire Shares under
the Plan (other than an Option) shall automatically expire if not exercised by the Purchaser within
30 days after the grant of such right was communicated to the Purchaser by the Company. Such right
shall not be transferable and shall be exercisable only by the Purchaser to whom such right was
granted.

     (c) Purchase Price. The Purchase Price of Shares to be offered under the Plan shall not be
less than 85% of the Fair Market Value of such Shares, and a higher percentage may be required by
Section 3(b). Subject to the preceding sentence, the Board of Directors shall determine the
Purchase Price at its sole discretion. The Purchase Price shall be payable in a form described in
Section 7.

     (d) Withholding Taxes. As a condition to the purchase of Shares, the Purchaser shall make
such arrangements as the Board of Directors may require for the satisfaction of any federal, state,
local or foreign withholding tax obligations that may arise in connection with such purchase.

 

			
	1	 	Reflects the 727,500 share increase approved by the
Board of Directors on October 7, 2004 and the 799,580 share increase approved
by the Board of Directors on January 22, 2006.

2

 

     (e) Restrictions on Transfer of Shares and Minimum Vesting. Any Shares awarded or sold under
the Plan shall be subject to such special forfeiture conditions, rights of repurchase, rights of
first refusal and other transfer restrictions as the Board of Directors may determine. Such
restrictions shall be set forth in the applicable Stock Purchase Agreement and shall apply in
addition to any restrictions that may apply to holders of Shares generally. In the case of a
Purchaser who is not an officer of the Company, an Outside Director or a Consultant:

     (i) Any right to repurchase the Purchaser’s Shares at the original Purchase
Price (if any) upon termination of the Purchaser’s Service shall lapse at least as
rapidly as 20% per year over the five-year period commencing on the date of the
award or sale of the Shares;

     (ii) Any such right may be exercised only for cash or for cancellation of
indebtedness incurred in purchasing the Shares; and

     (iii) Any such right may be exercised only within 90 days after the termination
of the Purchaser’s Service.

SECTION 6. TERMS AND CONDITIONS OF OPTIONS.

     (a) Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a
Stock Option Agreement between the Optionee and the Company. The Option shall be subject to all
applicable terms and conditions of the Plan and may be subject to any other terms and conditions
which are not inconsistent with the Plan and which the Board of Directors deems appropriate for
inclusion in a Stock Option Agreement. The provisions of the various Stock Option Agreements
entered into under the Plan need not be identical.

     (b) Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are
subject to the Option and shall provide for the adjustment of such number in accordance with
Section 8. The Stock Option Agreement shall also specify whether the Option is an ISO or a
Nonstatutory Option.

     (c) Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. The
Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the
date of grant, and a higher percentage may be required by Section 3(b). The Exercise Price of a
Nonstatutory Option shall not be less than 85% of the Fair Market Value of a Share on the date of
grant, and a higher percentage may be required by Section 3(b). Subject to the preceding two
sentences, the Exercise Price under any Option shall be determined by the Board of Directors at its
sole discretion. The Exercise Price shall be payable in a form described in Section 7.

     (d) Exercisability. Each Stock Option Agreement shall specify the date when all or any
installment of the Option is to become exercisable. No Option shall be exercisable unless the
Optionee has delivered an executed copy of the Stock Option Agreement to the Company. In the case
of an Optionee who is not an officer of the Company, an Outside Director or a Consultant, an Option
shall become exercisable at least as rapidly as 20% per year over the five-year period commencing
on the date of grant. Subject to the preceding sentence, the Board

3

 

of Directors shall determine the exercisability provisions of the Stock Option Agreement at
its sole discretion. All of an Optionee’s Options shall become exercisable in full if
Section 8(b)(iv) applies.

     (e) Basic Term. The Stock Option Agreement shall specify the term of the Option. The term
shall not exceed 10 years from the date of grant, and a shorter term may be required by
Section 3(b). Subject to the preceding sentence, the Board of Directors at its sole discretion
shall determine when an Option is to expire.

     (f) Termination of Service (Except by Death). If an Optionee’s Service terminates for any
reason other than the Optionee’s death, then the Optionee’s Options shall expire on the earliest of
the following occasions:

     (i) The expiration date determined pursuant to Subsection (e) above;

     (ii) The date three months after the termination of the Optionee’s Service for
any reason other than Disability, or such later date as the Board of Directors may
determine; or

     (iii) The date six months after the termination of the Optionee’s Service by
reason of Disability, or such later date as the Board of Directors may determine.

The Optionee may exercise all or part of the Optionee’s Options at any time before the expiration
of such Options under the preceding sentence, but only to the extent that such Options had become
exercisable before the Optionee’s Service terminated (or became exercisable as a result of the
termination) and the underlying Shares had vested before the Optionee’s Service terminated (or
vested as a result of the termination). The balance of such Options shall lapse when the
Optionee’s Service terminates. In the event that the Optionee dies after the termination of the
Optionee’s Service but before the expiration of the Optionee’s Options, all or part of such Options
may be exercised (prior to expiration) by the executors or administrators of the Optionee’s estate
or by any person who has acquired such Options directly from the Optionee by beneficiary
designation, bequest or inheritance, but only to the extent that such Options had become
exercisable before the Optionee’s Service terminated (or became exercisable as a result of the
termination) and the underlying Shares had vested before the Optionee’s Service terminated (or
vested as a result of the termination).

     (g) Leaves of Absence. For purposes of Subsection (f) above, Service shall be deemed to
continue while the Optionee is on a bona fide leave of absence, if such leave was approved by the
Company in writing and if continued crediting of Service for this purpose is expressly required by
the terms of such leave or by applicable law (as determined by the Company).

     (h) Death of Optionee. If an Optionee dies while the Optionee is in Service, then the
Optionee’s Options shall expire on the earlier of the following dates:

4

 

     (i) The expiration date determined pursuant to Subsection (e) above; or

     (ii) The date 12 months after the Optionee’s death, or such later date as the
Board of Directors may determine.

All or part of the Optionee’s Options may be exercised at any time before the expiration of such
Options under the preceding sentence by the executors or administrators of the Optionee’s estate or
by any person who has acquired such Options directly from the Optionee by beneficiary designation,
bequest or inheritance, but only to the extent that such Options had become exercisable before the
Optionee’s death (or became exercisable as a result of the death) and the underlying Shares had
vested before the Optionee’s death (or vested as a result of the Optionee’s death). The balance of
such Options shall lapse when the Optionee dies.

     (i) Restrictions on Transfer of Shares and Minimum Vesting. Any Shares issued upon exercise
of an Option shall be subject to such special forfeiture conditions, rights of repurchase, rights
of first refusal and other transfer restrictions as the Board of Directors may determine. Such
restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in
addition to any restrictions that may apply to holders of Shares generally. In the case of an
Optionee who is not an officer of the Company, an Outside Director or a Consultant:

     (i) Any right to repurchase the Optionee’s Shares at the original Exercise
Price upon termination of the Optionee’s Service shall lapse at least as rapidly as
20% per year over the five-year period commencing on the date of the option grant;

     (ii) Any such right may be exercised only for cash or for cancellation of
indebtedness incurred in purchasing the Shares; and

     (iii) Any such right may be exercised only within 90 days after the later of
(A) the termination of the Optionee’s Service or (B) the date of the option
exercise.

     (j) Transferability of Options. An Option shall be transferable by the Optionee only by (i) a
beneficiary designation, (ii) a will or (iii) the laws of descent and distribution, except as
provided in the next sentence. If the applicable Stock Option Agreement so provides, a
Nonstatutory Option shall also be transferable by gift or domestic relations order to a Family
Member of the Optionee. An ISO may be exercised during the lifetime of the Optionee only by the
Optionee or by the Optionee’s guardian or legal representative.

     (k) Withholding Taxes. As a condition to the exercise of an Option, the Optionee shall make
such arrangements as the Board of Directors may require for the satisfaction of any federal, state,
local or foreign withholding tax obligations that may arise in connection with such exercise. The
Optionee shall also make such arrangements as the Board of Directors may require for the
satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in
connection with the disposition of Shares acquired by exercising an Option.

5

 

     (l) No Rights as a Stockholder. An Optionee, or a transferee of an Optionee, shall have no
rights as a stockholder with respect to any Shares covered by the Optionee’s Option until such
person becomes entitled to receive such Shares by filing a notice of exercise and paying the
Exercise Price pursuant to the terms of such Option.

     (m) Modification, Extension and Assumption of Options. Within the limitations of the Plan,
the Board of Directors may modify, extend or assume outstanding Options or may accept the
cancellation of outstanding Options (whether granted by the Company or another issuer) in return
for the grant of new Options for the same or a different number of Shares and at the same or a
different Exercise Price. The foregoing notwithstanding, no modification of an Option shall,
without the consent of the Optionee, impair the Optionee’s rights or increase the Optionee’s
obligations under such Option.

SECTION 7. PAYMENT FOR SHARES.

     (a) General Rule. The entire Purchase Price or Exercise Price of Shares issued under the Plan
shall be payable in cash or cash equivalents at the time when such Shares are purchased, except as
otherwise provided in this Section 7.

     (b) Surrender of Stock. At the discretion of the Board of Directors, all or any part of the
Exercise Price may be paid by surrendering, or attesting to the ownership of, Shares that are
already owned by the Optionee. Such Shares shall be surrendered to the Company in good form for
transfer and shall be valued at their Fair Market Value on the date when the Option is exercised.
The Optionee shall not surrender, or attest to the ownership of, Shares in payment of the Exercise
Price if such action would cause the Company to recognize compensation expense (or additional
compensation expense) with respect to the Option for financial reporting purposes.

     (c) Services Rendered. At the discretion of the Board of Directors, Shares may be awarded
under the Plan in consideration of services rendered to the Company, a Parent or a Subsidiary prior
to the award.

     (d) Promissory Note. At the discretion of the Board of Directors, all or a portion of the
Exercise Price or Purchase Price (as the case may be) of Shares issued under the Plan may be paid
with a full-recourse promissory note. However, the par value of the Shares, if newly issued, shall
be paid in cash or cash equivalents. The Shares shall be pledged as security for payment of the
principal amount of the promissory note and interest thereon. The interest rate payable under the
terms of the promissory note shall not be less than the minimum rate (if any) required to avoid the
imputation of additional interest under the Code. Subject to the foregoing, the Board of Directors
(at its sole discretion) shall specify the term, interest rate, amortization requirements (if any)
and other provisions of such note.

     (e) Exercise/Sale. To the extent that a Stock Option Agreement so provides, and if Stock is
publicly traded, payment may be made all or in part by the delivery (on a form prescribed by the
Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares
and to deliver all or part of the sales proceeds to the Company in payment of all or part of the
Exercise Price and any withholding taxes.

6

 

     (f) Exercise/Pledge. To the extent that a Stock Option Agreement so provides, and if Stock is
publicly traded, payment may be made all or in part by the delivery (on a form prescribed by the
Company) of an irrevocable direction to pledge Shares to a securities broker or lender approved by
the Company, as security for a loan, and to deliver all or part of the loan proceeds to the Company
in payment of all or part of the Exercise Price and any withholding taxes.

SECTION 8. ADJUSTMENT OF SHARES.

     (a) General. In the event of a subdivision of the outstanding Stock, a declaration of a
dividend payable in Shares or a combination or consolidation of the outstanding Stock into a lesser
number of Shares, corresponding adjustments shall automatically be made in each of (i) the number
of Shares available for future grants under Section 4, (ii) the number of Shares covered by each
outstanding Option and (iii) the Exercise Price under each outstanding Option. In the event of a
declaration of an extraordinary dividend payable in a form other than Shares in an amount that has
a material effect on the Fair Market Value of the Stock, a recapitalization, a spin-off, a
reclassification or a similar occurrence, the Board of Directors at its sole discretion may make
appropriate adjustments in one or more of (i) the number of Shares available for future grants
under Section 4, (ii) the number of Shares covered by each outstanding Option or (iii) the Exercise
Price under each outstanding Option.

     (b) Mergers and Consolidations. In the event that the Company is a party to a merger or
consolidation, all outstanding Options shall be subject to the agreement of merger or
consolidation. Such agreement shall provide for one or more of the following:

     (i) The continuation of such outstanding Options by the Company (if the Company
is the surviving corporation).

     (ii) The assumption of such outstanding Options by the surviving corporation or
its parent in a manner that complies with Section 424(a) of the Code (whether or not
such Options are ISOs).

     (iii) The substitution by the surviving corporation or its parent of new
options for such outstanding Options in a manner that complies with Section 424(a)
of the Code (whether or not such Options are ISOs).

     (iv) Full exercisability of such outstanding Options and full vesting of the
Shares subject to such Options, followed by the cancellation of such Options. The
full exercisability of such Options and full vesting of the Shares subject to such
Options may be contingent on the closing of such merger or consolidation. The
Optionees shall be able to exercise such Options during a period of not less than
five full business days preceding the closing date of such merger or consolidation,
unless (A) a shorter period is required to permit a timely closing of such merger or
consolidation and (B) such shorter period still offers the Optionees a reasonable
opportunity to exercise such Options. Any exercise of such Options during such
period may be contingent on the closing of such merger or consolidation.

7

 

     (v) The cancellation of such outstanding Options and a payment to the Optionees
equal to the excess of (A) the Fair Market Value of the Shares subject to such
Options (whether or not such Options are then exercisable or such Shares are then
vested) as of the closing date of such merger or consolidation over (B) their
Exercise Price. Such payment shall be made in the form of cash, cash equivalents,
or securities of the surviving corporation or its parent with a Fair Market Value
equal to the required amount. Such payment may be made in installments and may be
deferred until the date or dates when such Options would have become exercisable or
such Shares would have vested. Such payment may be subject to vesting based on the
Optionee’s continuing Service, provided that the vesting schedule shall not be less
favorable to the Optionee than the schedule under which such Options would have
become exercisable or such Shares would have vested. If the Exercise Price of the
Shares subject to such Options exceeds the Fair Market Value of such Shares, then
such Options may be cancelled without making a payment to the Optionees. For
purposes of this Paragraph (v), the Fair Market Value of any security shall be
determined without regard to any vesting conditions that may apply to such security.

     (c) Reservation of Rights. Except as provided in this Section 8, an Optionee or Purchaser
shall have no rights by reason of (i) any subdivision or consolidation of shares of stock of any
class, (ii) the payment of any dividend or (iii) any other increase or decrease in the number of
shares of stock of any class. Any issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall not affect, and no adjustment by
reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to an
Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or power
of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or
business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any
part of its business or assets.

SECTION 9. SECURITIES LAW REQUIREMENTS.

     (a) General. Shares shall not be issued under the Plan unless the issuance and delivery of
such Shares comply with (or are exempt from) all applicable requirements of law, including (without
limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated
thereunder, state securities laws and regulations, and the regulations of any stock exchange or
other securities market on which the Company’s securities may then be traded.

     (b) Financial Reports. The Company each year shall furnish to Optionees, Purchasers and
stockholders who have received Stock under the Plan its balance sheet and income statement, unless
such Optionees, Purchasers or stockholders are key Employees whose duties with the Company assure
them access to equivalent information. Such balance sheet and income statement need not be
audited.

8

 

SECTION 10. NO RETENTION RIGHTS.

     Nothing in the Plan or in any right or Option granted under the Plan shall confer upon the
Purchaser or Optionee any right to continue in Service for any period of specific duration or
interfere with or otherwise restrict in any way the rights of the Company (or any Parent or
Subsidiary employing or retaining the Purchaser or Optionee) or of the Purchaser or Optionee, which
rights are hereby expressly reserved by each, to terminate his or her Service at any time and for
any reason, with or without cause.

SECTION 11. DURATION AND AMENDMENTS.

     (a) Term of the Plan. The Plan, as set forth herein, shall become effective on the date of
its adoption by the Board of Directors, subject to the approval of the Company’s stockholders. If
the stockholders fail to approve the Plan within 12 months after its adoption by the Board of
Directors, then any grants, exercises or sales that have already occurred under the Plan shall be
rescinded and no additional grants, exercises or sales shall thereafter be made under the Plan.
The Plan shall terminate automatically 10 years after the later of (i) its adoption by the Board of
Directors or (ii) the most recent increase in the number of Shares reserved under Section 4 that
was approved by the Company’s stockholders. The Plan may be terminated on any earlier date
pursuant to Subsection (b) below.

     (b) Right to Amend or Terminate the Plan. The Board of Directors may amend, suspend or
terminate the Plan at any time and for any reason; provided, however, that any amendment of the
Plan shall be subject to the approval of the Company’s stockholders if it (i) increases the number
of Shares available for issuance under the Plan (except as provided in Section 8) or
(ii) materially changes the class of persons who are eligible for the grant of ISOs. Stockholder
approval shall not be required for any other amendment of the Plan. If the stockholders fail to
approve an increase in the number of Shares reserved under Section 4 within 12 months after its
adoption by the Board of Directors, then any grants, exercises or sales that have already occurred
in reliance on such increase shall be rescinded and no additional grants, exercises or sales shall
thereafter be made in reliance on such increase.

     (c) Effect of Amendment or Termination. No Shares shall be issued or sold under the Plan
after the termination thereof, except upon exercise of an Option granted prior to such termination.
The termination of the Plan, or any amendment thereof, shall not affect any Share previously
issued or any Option previously granted under the Plan.

SECTION 12. DEFINITIONS.

     (a) “Board of Directors” shall mean the Board of Directors of the Company, as constituted from
time to time.

     (b) “Code” shall mean the Internal Revenue Code of 1986, as amended.

     (c) “Committee” shall mean a committee of the Board of Directors, as described in
Section 2(a).

9

 

     (d) “Company” shall mean Sling Media, Inc., a Delaware corporation.

     (e) “Consultant” shall mean a person who performs bona fide services for the Company, a Parent
or a Subsidiary as a consultant or advisor, excluding Employees and Outside Directors.

     (f) “Disability” shall mean that the Optionee is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment.

     (g) “Employee” shall mean any individual who is a common-law employee of the Company, a Parent
or a Subsidiary.

     (h) “Exercise Price” shall mean the amount for which one Share may be purchased upon exercise
of an Option, as specified by the Board of Directors in the applicable Stock Option Agreement.

     (i) “Fair Market Value” shall mean the fair market value of a Share, as determined by the
Board of Directors in good faith. Such determination shall be conclusive and binding on all
persons.

     (j) “Family Member” shall mean (i) any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships,
(ii) any person sharing the Optionee’s household (other than a tenant or employee), (iii) a trust
in which persons described in Clause (i) or (ii) have more than 50% of the beneficial interest,
(iv) a foundation in which persons described in Clause (i) or (ii) or the Optionee control the
management of assets and (v) any other entity in which persons described in Clause (i) or (ii) or
the Optionee own more than 50% of the voting interests.

     (k) “ISO” shall mean an employee incentive stock option described in Section 422(b) of the
Code.

     (l) “Nonstatutory Option” shall mean a stock option not described in Sections 422(b) or 423(b)
of the Code.

     (m) “Option” shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the
holder to purchase Shares.

     (n) “Optionee” shall mean a person who holds an Option.

     (o) “Outside Director” shall mean a member of the Board of Directors who is not an Employee.

     (p) “Parent” shall mean any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company, if each of the corporations other than the Company owns stock
possessing 50% or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain. A corporation that attains the

10

 

status of a Parent on a date after the adoption of the Plan shall be considered a Parent
commencing as of such date.

     (q) “Plan” shall mean this Sling Media, Inc. 2004 Stock Plan.

     (r) “Purchase Price” shall mean the consideration for which one Share may be acquired under
the Plan (other than upon exercise of an Option), as specified by the Board of Directors.

     (s) “Purchaser” shall mean a person to whom the Board of Directors has offered the right to
acquire Shares under the Plan (other than upon exercise of an Option).

     (t) “Service” shall mean service as an Employee, Outside Director or Consultant.

     (u) “Share” shall mean one share of Stock, as adjusted in accordance with Section 8 (if
applicable).

     (v) “Stock” shall mean the Common Stock of the Company, with a par value of $0.0001 per Share.

     (w) “Stock Option Agreement” shall mean the agreement between the Company and an Optionee that
contains the terms, conditions and restrictions pertaining to the Optionee’s Option.

     (x) “Stock Purchase Agreement” shall mean the agreement between the Company and a Purchaser
who acquires Shares under the Plan that contains the terms, conditions and restrictions pertaining
to the acquisition of such Shares.

     (y) “Subsidiary” shall mean any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company, if each of the corporations other than the last
corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain. A corporation that
attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a
Subsidiary commencing as of such date.

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Exhibit 10.1    
    

 
 

FORM OF
  ESCROW AGREEMENT    
    

        THIS ESCROW AGREEMENT is made and entered into as of the day
of                        , 200            , by and among BANK OF
TEXAS, N.A., a national banking
association (the "Bank"); REEF OIL & GAS PARTNERS, L.P., a Nevada limited partnership (the "Managing General
Partner"), and the Managing General Partner of Reef 200            -            Drilling Partnership, L.P.,
 a limited partnership to be formed under the laws of Nevada
(the "Partnership"); and REEF SECURITIES, INC., a Texas corporation and the dealer manager (the "Dealer
Manager") of the proposed securities offering of units of the Partnership. 

 
 

I. RECITALS    
    

        1.1    The Agreement.    The Managing General Partner has prepared an offering prospectus
("Prospectus") on behalf of the Partnership pertaining to the offer and subscription for partnership interest in the Partnership
("Units") aggregating $    ,000,000, upon the terms and subject to the conditions set forth in the Prospectus which, among other things,
provides that each person desiring to subscribe for Units will be required to forward to the Dealer Manager a check payable to the order of "Bank of Texas, N.A., Escrow Agent for Reef
200            -            Drilling Partnership, L.P.," in an amount equal to his subscription to the Partnership. 

        1.2    Purpose Hereof.    The Bank, the Managing General Partner (for itself and the Partnership) and the Dealer
Manager hereby enter into this Escrow Agreement. 

 
 

II. ESCROW PROVISIONS    
    

        2.1    Appointment of Bank.    The Bank is hereby appointed Escrow Agent to hold and dispose of all funds paid by
subscribers ("Escrow Funds") for Units or reservations for such Units, as hereinafter provided. 

        2.2    Deposit and Receipt of Funds.    

        (a)   The
Dealer Manager shall deposit promptly all checks received by it in payment of subscriptions in an escrow account entitled "Bank of Texas, N.A., Escrow Agent for Reef
200            -            Drilling Partnership, L.P.," established at the Bank, for the purpose of this Escrow Agreement.
Concurrently with the delivery of such deposits to the Bank, the
Dealer Manager shall supply the Bank and the Managing General Partner with the name, mailing address and a completed Form W9/W8 for each subscriber. The Bank shall hold the proceeds of said checks
(the "Escrow Funds") in escrow until disbursements therefrom are directed as set forth in Paragraph 2.4. 

        (b)   The
Managing General Partner and Dealer Manager shall each execute and deliver to the Escrow Agent a certificate of incumbency substantially in the form of  Exhibit A hereto for the purpose of
establishing the identity of the representatives of the Managing General Partner and Dealer Manager entitled
to issue instructions or directions to the Escrow Agent on behalf of each such party. In the event of any change in the identity of such representatives, a new certificate of incumbency shall be
executed and delivered to the Escrow Agent by the appropriate party. Until such time as the Escrow Agent shall receive a new incumbency certificate, the Escrow Agent shall be fully protected in
relying without inquiry on any then current incumbency certificate on file with the Escrow Agent. 

        (c)   The
Managing General Partner, Partnership and Dealer Manager shall each furnish the Escrow Agent with a completed Form W-8 or
Form W-9, as applicable. 

        2.3    Investment of Funds.    The Escrow Funds shall be invested only in short term institutional investments
including bank accounts, insured bank money market accounts or certificates of deposit 

 

issued
by a bank. The interest earned shall be added to the Escrow Funds and disbursed in accordance with the provisions of Paragraph 2.4 or 2.10, as the case may be. Unless directed otherwise
by the Managing General Partner, the Escrow Funds shall be invested in The American Performance U.S. Treasury Fund. 

        2.4    Disbursement of Escrow Funds.    At such time as (i) checks representing subscriptions for at least 40
Units ($1,000,000) shall have been deposited with the Bank, without regard to Units subscribed for by the Managing General Partner or its affiliates, and (ii) funds for at least $1,000,000
shall have been collected by the Bank, upon receipt by the Bank of written instructions from the Managing General Partner and the Dealer Manager informing the Bank of the date of closing with respect
to the Partnership, the Bank will deliver to the Managing General Partner certified, or official bank or trust checks drawn on the Escrow Funds to the orders and in the amounts set forth in the
aforementioned instructions. The Bank shall not disburse any Escrow Funds to the Partnership until at least $1,000,000 in collected funds have been deposited in the Escrow Account. All such
disbursement instructions shall be unconditional and shall not impose any duties upon the Bank other than that of disbursing Escrow Funds in a designated amount to a particular party. In the event
that any funds, including cleared funds but excluding funds that are part of the initial $1,000,000 necessary for disbursement, deposited in the Escrow Account prove uncollectible after the funds
represented thereby have been released by the Escrow Agent pursuant to this Agreement, the Managing General Partner shall immediately reimburse the Escrow Agent upon request for the face amount of
such check or checks, together with reasonable and customary charges and expenses related thereto, and the Escrow Agent shall deliver the returned checks or other instruments to the Managing General
Partner. The Managing General Partner acknowledges that its obligation in the preceding sentence shall survive the termination of this Agreement and the resignation or removal of the Escrow Agent. 

        2.5    Return of Escrow Funds to Subscribers.    Before, at or following the closing, the Managing General Partner may
separately instruct the Bank in writing to return to any subscriber so specified by the Managing General Partner an amount equal to the total amount of Units subscribed for, together with interest
attributable thereto, if any, as calculated by the Managing General Partner. 

        2.6    Bank's Responsibility.    The Bank's sole responsibility shall be for the safekeeping of the Escrow Funds, the
deposit of the Escrow Funds pursuant to Paragraph 2.3 and the disbursement thereof in accordance with Paragraph 2.4, 2.5 or 2.10, and the Bank shall not be required to take any other
action with reference to any matters which might arise in connection with the Escrow Funds or this Escrow Agreement. The Bank may act upon any written instruction or other instrument which the Bank in
good faith believes to be genuine and what it purports to be. THE BANK SHALL NOT BE LIABLE FOR ANY ACTION TAKEN BY IT IN GOOD FAITH AND BELIEVED TO BE AUTHORIZED OR WITHIN THE RIGHTS OR POWERS
CONFERRED UPON IT BY THIS ESCROW AGREEMENT OR FOR ANYTHING WHICH THE BANK MAY DO OR REFRAIN FROM DOING IN CONNECTION HEREWITH UNLESS THE BANK IS GUILTY OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. IN NO
EVENT SHALL THE ESCROW AGENT BE LIABLE TO THE MANAGING GENERAL PARTNER, PARTNERSHIP OR THE DEALER MANAGER OR ANY THIRD PARTY FOR SPECIAL, INDIRECT, OR CONSEQUENTIAL DAMAGES, OR LOST PROFITS OR LOSS OF
BUSINESS ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT. The Bank may consult with counsel of its own choice and shall have full and complete authorization and protection for any action taken or
suffered by it hereunder in good faith and in accordance with the opinion of such counsel, except actions of gross negligence or willful misconduct. The Bank is not a party to, nor is it bound by, nor
need it give consideration to the terms or provisions of, even though it may have knowledge of, (i) any agreement or undertaking between the Managing General Partner and any other party or
parties, except for this Escrow Agreement, (ii) any agreement or undertaking which may be evidenced or disclosed by this Escrow Agreement or the Prospectus, or (iii) any other agreement
that may now or in the future be 

2

 

deposited
with the Bank in connection with this Escrow Agreement. The Bank has no duty to determine or inquire into any happening or occurrence or any performance or failure of performance of the
Managing General Partner or any other party with respect to agreements or arrangements with each other or with any other party or parties. The Bank shall have no responsibility or liability for any
diminution in value of any assets held hereunder which may result from any investments or reinvestment made in accordance with any provision which may be contained herein. The Bank shall be under no
obligation to invest the deposited funds or the income generated thereby until it has received a Form W-9 or W-8, as applicable, from the Managing General Partner,
Partnership, Dealer Manager and subscribers, regardless of whether such party is exempt from reporting or withholding requirements under the Internal Revenue Code of 1986, as amended. 

        2.7    Possible Disagreements.    If any disagreement should arise between the parties hereto or with any other party
with respect to the Escrow Funds or this Escrow Agreement or if the Bank in good faith is in doubt as to what action should be taken hereunder, the Bank shall have the absolute right at its election
to do either or both of the following: (i) withhold or stop all further performance under this Escrow Agreement and all instructions received in connection herewith until the Bank is satisfied
that such disagreement has been resolved, or (ii) file a suit in interpleader and obtain an order from a court of appropriate jurisdiction requiring all persons involved to litigate in
such court their respective claims arising out of or in connection with the Escrow Funds. 

        2.8    Indemnity To Bank.    THE MANAGING GENERAL PARTNER AND DEALER MANAGER JOINTLY AND SEVERALLY AGREE TO INDEMNIFY
AND HOLD THE BANK HARMLESS AGAINST AND FROM ANY AND ALL COSTS, EXPENSES, CLAIMS, LOSSES, LIABILITIES
AND DAMAGES (INCLUDING REASONABLE ATTORNEYS' FEES) THAT MAY ARISE OUT OF OR IN CONNECTION WITH THE BANK'S ACTING AS ESCROW AGENT UNDER THE TERMS OF THIS ESCROW AGREEMENT, EXCEPT IN THOSE INSTANCES
WHERE THE BANK HAS BEEN GUILTY OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, AND INDEMNIFICATION SHALL SURVIVE THE BANK'S RESIGNATION OR REMOVAL, OR THE TERMINATION OF THE AGREEMENT. AT THE REQUEST OF
THE BANK, THE MANAGING GENERAL PARTNER SHALL CAUSE THE PARTNERSHIP, ONCE IT IS FORMED, TO ENTER INTO THIS COVENANT TO INDEMNIFY THE BANK. 

        2.9    Compensation.    The Bank shall be entitled to compensation for its services hereunder as per  Exhibit B attached hereto, which is made a part hereof, and for reimbursement of its out-of-pocket expenses including,
but not by way of limitation, the fees and costs of attorneys or agents that it may find necessary to engage in performance of its duties hereunder, all to be paid by the Managing General Partner. At
such time as the required minimum of 40 Units ($1,000,000), without regard to Units subscribed for by the Managing General Partner or its affiliates, shall have been collected and be disbursable to
the Managing General Partner, the Escrow Agent shall have, and is hereby granted, a prior lien upon any property, cash, or assets of the Escrow Account, with respect to its unpaid fees and
nonreimbursed expenses, superior to the interests of any other persons or entities. At such time as the required minimum of 40 Units ($1,000,000), without regard to Units subscribed for by the
Managing General Partner or its affiliates, shall have been collected and be disbursable to the Managing General Partner, the Bank shall be entitled to and is hereby granted the right to set off and
deduct any unpaid fees and/or nonreimbursed expenses from amounts on deposit in the Escrow Funds. 

        2.10    Return of Escrow Funds.    If the required minimum of 40 Units ($1,000,000), without regard to Units
subscribed for by the Managing General Partner or its affiliates, are not subscribed for and accepted by the Managing General Partner prior to December 31, [2007 or 2008, as
appropriate], [or in the case of a Partnership offered during 2009, on                        , 2009,] the Bank will promptly
return to subscribers from the Escrow Funds an
amount equal to the principal amount of Units subscribed for together with interest attributable thereto where appropriate. 

3

 

        2.11    Effective Date and Termination.    This Escrow Agreement shall become effective on the date of this agreement.
All of the provisions of this Escrow Agreement shall be fully performed and this Escrow Agreement shall terminate by the disbursement of all Escrow Funds as herein set out. 

        2.12    Statements.    During the term of this Agreement, the Escrow Agent shall provide the Dealer Manager with
monthly statements containing the beginning balance in the escrow account as well as all principal and income transactions for the statements period. Dealer Manager shall be responsible for
reconciling these statements. The Escrow Agent shall be forever released and discharged from all liability with respect to the accuracy of such statements and the transactions listed therein, except
with
respect to any such act or transaction as to which the Dealer Manager shall within 90 days after the furnishing of the statement file written objections with the Escrow Agent. 

        2.13    Notices and Communications.    All notices and communications hereunder shall be in writing and shall be
deemed to be duly given if sent by registered mail, return receipt requested, as follows: 

Bank
of Texas, N.A.

9520 N. May Avenue

Suite 110

Oklahoma City, OK 73120

Attn.: Sue Shipman

Telephone: 405.936.3901

Facsimile: 405.936.3964 

Reef
Oil & Gas Partners, L.P.

1901 N. Central Expressway

Suite 300

Richardson, Texas 75080

Telephone: 972.437.6792

Facsimile: 972.994.0369 

Reef
Securities, Inc.

1901 N. Central Expressway

Suite 400

Richardson, Texas 75080

Telephone: 972.437.6895

Facsimile: 972.994.0369 

        2.14    Resignation.    The Bank may resign and be discharged from its duties or obligations hereunder by giving
notice in writing of such resignation specifying a date when such resignation shall take place. 

        2.15    Entire Agreement.    This instrument evidences the entire agreement between the Bank, the Partnership, the
Managing General Partner and the Dealer Manager. 

        2.16    Applicable Law.    This agreement shall be construed and enforced according to the laws of the State of Texas,
and the provisions herein administered in accordance with such laws. 

        2.17    Approval of Offering.    The Bank is acting solely as Escrow Agent and has not reviewed or approved the
offering of the Units, nor is it required to review or approve the offering of the Units or the economic viability of the Partnership, nor any other matters relating to the sale of the Units other
than this Agreement. 

        2.18.    Tax Matters.    

        (a)   Preparation and Filing of Tax Returns. The Managing General Partner is required to prepare and file any and all income or
other tax returns applicable to the Escrow Funds with the 

4

 

Internal
Revenue Service and all required state and local departments of revenue in all years income is earned in any particular tax year as and to the extent required under the provisions of the
Code. 

        (b)   Unrelated Transactions. The Escrow Agent shall have no responsibility for the preparation of and/or filing of any tax or
information return with respect to any transaction, whether or not related to this Agreement or a related agreement, that occurs outside the Escrow Funds. 

        WITNESS
THE EXECUTION OF THIS ESCROW AGREEMENT, as of the date first above written. 

	

 	

BANK OF TEXAS, N.A.
	

 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	

REEF OIL & GAS PARTNERS, L.P.

individually and as Managing General Partner of Reef 200    -    Drilling Partnership, L.P.
	

 	

By: Reef Oil & Gas Partners, GP, LLC,

Its general partner
	

 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	

REEF SECURITIES, INC.
	

 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

5

 
 
 

EXHIBIT A    
    

 
 

CERTIFICATE OF INCUMBENCY    
    

        The undersigned,                        ,
of                        , hereby certifies that the following named officers are duly appointed, qualified and acting in the
capacity
set forth opposite his/her name, and the following signature is the true and genuine signature of said officer. 

	Name	 	Title	 	Signature
	 	 	 	 	 
	
	 	
	 	

	 	 	 	 	 
	
	 	
	 	

	 	 	 	 	 
	
	 	
	 	

        Such
officers are hereby authorized to furnish the Escrow Agent with directions relating to any matter concerning this Escrow Agreement and the funds and/or property held pursuant
thereto. 

        IN
WITNESS WHEREOF,                        has caused this Certificate of Incumbency to be executed by its officer duly authorized
this                        day
of                        , 200    .
 

	

 	
[Name of Party]
	

 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

6

 
 
 

EXHIBIT B    
    

 
 

SCHEDULE OF ESCROW AGENT FEES    
    

Annual Administration Fee:            $3,500 

Out-of-pocket Expenses: 

Expenses for extraordinary services, such as, but not limited to, travel, legal, securities delivery and legal notice publication will be billed
additionally.

Additional Terms and Conditions:  

In the event the escrow is not funded, the Annual Administration Fee and all related expenses will not be refunded. The flat fee covers a full year in advance, or any part
thereof, and is not pro-rated in the year of termination.

7

QuickLinks

Exhibit 10.1

FORM OF ESCROW AGREEMENT

I. RECITALS

II. ESCROW PROVISIONS

EXHIBIT A

CERTIFICATE OF INCUMBENCY

EXHIBIT B

SCHEDULE OF ESCROW AGENT FEES

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