Document:

Exhibit 10.5

 Exhibit 10.5 
  

 XM SATELLITE RADIO HOLDINGS INC. 
 2007 STOCK INCENTIVE PLAN 
  

 XM SATELLITE RADIO HOLDINGS INC. 
 2007 STOCK INCENTIVE PLAN 
 XM Satellite Radio Holdings Inc., a Delaware corporation (the
“Company”), sets forth herein the terms of its 2007 Stock Incentive Plan (the “Plan”), as follows: 
  

	1.	PURPOSE 

 The Plan is intended to enhance the Company’s and its
Affiliates’ (as defined herein) ability to attract and retain highly qualified officers, outside directors, key employees, and other persons, and to motivate such persons to serve the Company and its Affiliates and to expend maximum effort to
improve the business results and earnings of the Company, by providing to such persons an opportunity to acquire or increase a direct proprietary interest in the operations and future success of the Company. To this end, the Plan provides for the
grant of stock options, stock appreciation rights, restricted stock, stock units, dividend equivalent rights, cash awards and any other stock-based award under the Plan. Any of these awards may, but need not, be made as performance incentives to
reward attainment of annual or long-term performance goals in accordance with the terms hereof. Stock options granted under the Plan may be non-qualified stock options or incentive stock options, as provided herein. 
  

	2.	DEFINITIONS 

 For purposes of interpreting the Plan and related
documents (including Award Agreements), the following definitions shall apply: 
 2.1    “Affiliate” means, 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 within the meaning of Rule 405 of Regulation C under the Securities Act, including, without limitation, any
Subsidiary. For purposes of granting stock options or stock appreciation rights, an entity may not be considered an Affiliate if it results in noncompliance with Code Section 409A. 
 2.2    “Annual Incentive Award” means an Award made subject to attainment of performance goals (as described in Section 14) over a performance period of up to one year
(the Company’s fiscal year, unless otherwise specified by the Committee). 
 2.3    “Award” means a grant of an
Option, Stock Appreciation Right, Restricted Stock, Stock Unit, Dividend Equivalent Rights, cash award, or any Other Stock-Based Award under the Plan. 
 2.4    “Award Agreement” means the written agreement between the Company and a Grantee that evidences and sets out the terms and conditions of an Award. The Committee may provide for the use of
electronic, Internet, or other nonpaper Award Agreements, and the use of electronic, Internet, or other nonpaper means for the acceptance thereof and actions thereunder by a Grantee. 
 2.5    “Benefit Arrangement” shall have the meaning set forth in Section 15 hereof. 
 2.6    “Board” means the Board of Directors of the Company. 
 2.7    “Cause” means, with respect to any Grantee, the meaning of such term as set forth in the employment agreement between the Company (or any Affiliate) and the Grantee or, in the event there is no
such employment agreement (or if any such employment agreement does not contain such a definition), such term shall mean (i) willful or gross misconduct or willful or gross negligence in the performance of his or her duties for the Company or
any Affiliate, (ii) neglect of his or her duties for the Company or any Affiliate after written notice and opportunity to cure, (iii) dishonesty, fraud, theft, embezzlement or misappropriation of funds, properties or assets of the Company
or of any Affiliate, (iv) conviction of a felony or (v) a direct or indirect material breach of the terms of any agreement with the Company or any Affiliate. 
 2.8    “Code” means the Internal Revenue Code of 1986, as now in effect or as hereafter amended. 
 2.9    “Committee” means a committee of, and designated from time to time by resolution of, the Board, which shall be constituted as provided in Section 3.2.

  

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 2.10    “Company” means XM Satellite Radio Holdings Inc. 
 2.11    “Corporate Transaction” shall be deemed to have occurred if (i) any person or group of persons (as defined in
Section 13(d) and 14(d) of the Exchange Act) together with its affiliates, excluding employee benefit plans of the Company, is or becomes, directly or indirectly, the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act)
of securities of the Company representing 40% or more of the combined voting power of the Company’s then outstanding securities; or (ii) individuals who at the beginning of any two-year period constitute the Board, plus new directors of
the Company whose election or nomination for election by the Company’s shareholders is approved by a vote of a at least two-thirds of the directors of the Company still in office who were directors of the Company at the beginning of such
two-year period, cease for any reason during such two-year period to constitute at least two-thirds of the members of the Board; or (iii) a merger or consolidation of the Company with any other corporation or entity is consummated regardless of
which entity is the survivor, other than a merger of consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or being converted into
voting securities of the surviving entity) at least 60% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or (iv) the Company is completely
liquidated or all or substantially all of the Company’s assets are sold. 
 2.12    “Covered Employee” means a
Grantee who is a covered employee within the meaning of Section 162(m)(3) of the Code. 
 2.13    “Disability”
means the Grantee is unable to perform each of the essential duties of such Grantee’s position by reason of a medically determinable physical or mental impairment which is potentially permanent in character or which can be expected to last for
a continuous period of not less than 12 months; provided, however, that, with respect to rules regarding expiration of an Incentive Stock Option following termination of the Grantee’s Service, Disability shall mean the Grantee is unable to
engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12
months. 
 2.14    “Dividend Equivalent Right” means a right, granted to a Grantee under Section 12 hereof,
to receive cash, Stock, other Awards or other property equal in value to dividends paid with respect to a specified number of shares of Stock, or other periodic payments. 
 2.15    “Effective Date” means May 25, 2007, the date the Plan is approved by the shareholders. 
 2.16    “Exchange Act” means the Securities Exchange Act of 1934, as now in effect or as hereafter amended. 
 2.17    “Fair Market Value” with respect to a share of Stock means the value of a share of such Stock determined as follows: if on the Grant Date or other determination date the
Stock is listed on an established national or regional stock exchange, is admitted to quotation on The NASDAQ Stock Market, Inc. or is publicly traded on an established securities market, the Fair Market Value of a share of Stock shall be the
closing price of the Stock on such exchange or in such market (if there is more than one such exchange or market the Committee shall determine the appropriate exchange or market) on the Grant Date or such other determination date (or if there is no
such reported closing price, the Fair Market Value shall be the mean between the highest bid and lowest asked prices or between the high and low sale prices on such trading day) or, if no sale of Stock is reported for such trading day, on the next
preceding day on which any sale shall have been reported. If the Stock is not listed on such an exchange, quoted on such system or traded on such a market, Fair Market Value of the share of Stock shall be the value of the Stock as determined by the
Committee in good faith in a manner consistent with Code Section 409A. “Fair Market Value” with respect to an Award means the value of the Award as determined by the Committee in good faith, taking into consideration applicable tax
and accounting rules and regulations. 
 2.18    “Family Member” means a person who is a spouse, former spouse, child,
stepchild, grandchild, parent, stepparent, grandparent, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother, sister, brother-in-law, or sister-in-law, including adoptive relationships, of the Grantee, any person sharing
the Grantee’s household (other than a tenant or employee), a trust in which any one or more of these persons have more than fifty percent of the beneficial interest, a foundation in which any one or more of these persons (or the Grantee)
control the management of assets, and any other entity in which one or more of these persons (or the Grantee) own more than fifty percent of the voting interests. 
 2.19    “Good Reason” means (a) a substantial adverse alteration in the Grantee’s title or responsibilities from those in effect immediately prior to the Corporate Transaction; (b) a
reduction in the Grantee’s annual base salary as of immediately prior to the 

  

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Corporate Transaction (or as the same may be increased from time to time) or a material reduction in the Grantee’s annual target bonus opportunity as of
immediately prior to the Corporate Transaction; or (c) the relocation of the Grantee’s principal place of employment to a location more than 35 miles from the Grantee’s principal place of employment as of the Corporate Transaction or
the Company’s requiring the Grantee to be based anywhere other than such principal place of employment (or permitted relocation thereof) except for required travel on the Company’s business to an extent substantially consistent with the
Grantee’s business travel obligations as of immediately prior to the Corporate Transaction. The Grantee’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting
Good Reason hereunder, provided that the Grantee provides the Company with a written notice of resignation within ninety (90) days following the occurrence of the event constituting Good Reason. 
 2.20    “Grant Date” 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 6 hereof, or (iii) such other date as may be specified by the Committee. 
 2.21    “Grantee” means a person who receives or holds an Award under the Plan. 
 2.22    “Incentive Stock Option” means an “incentive stock option” within the meaning of Section 422 of the Code, or
the corresponding provision of any subsequently enacted tax statute, as amended from time to time. 
 2.23    “Non-qualified
Stock Option” means an Option that is not an Incentive Stock Option. 
 2.24    “Option” means an option to
purchase one or more shares of Stock pursuant to the Plan. 
 2.25    “Option Price” means the exercise price for each
share of Stock subject to an Option. 
 2.26    “Other Agreement” shall have the meaning set forth in
Section 15 hereof. 
 2.27    “Other Stock-Based Award” shall mean any right granted under Section
13 of the Plan. 
 2.28    “Outside Director” means a member of the Board who is not an officer or employee
of the Company. 
 2.29    “Performance Award” means an Award made subject to the attainment of performance goals (as
described in Section 14) over a performance period of up to ten (10) years. 
 2.30    “Plan” means
this XM Satellite Radio Holdings Inc. 2007 Stock Incentive Plan. 
 2.31    “Purchase Price” means the purchase price
for each share of Stock pursuant to a grant of Restricted Stock or Other Stock-Based Award. 
 2.32    “Reporting
Person” means a person who is required to file reports under Section 16(a) of the Exchange Act. 
 2.33    “Restricted Stock” means shares of Stock, awarded to a Grantee pursuant to Section 10 hereof. 
 2.34    “SAR Exercise Price” means the per share exercise price of an SAR granted to a Grantee under Section 9 hereof. 
 2.35    “Securities Act” means the Securities Act of 1933, as now in effect or as hereafter amended. 
 2.36    “Service” means service as a Service Provider to the Company or an Affiliate. Unless otherwise stated in the applicable Award Agreement, a Grantee’s change in position
or duties shall not result in interrupted or terminated Service, so long as such Grantee continues to be a Service Provider to the Company or an Affiliate. Subject to the preceding sentence, whether a termination of Service shall have occurred for
purposes of the Plan shall be determined by the Committee, which determination shall be final, binding and conclusive. 
  

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 2.37    “Service Provider” means an employee, officer or director of the Company or
an Affiliate, or a consultant or adviser currently providing services to the Company or an Affiliate. 
 2.38    “Stock”
means the common stock, par value $.01 per share, of the Company. 
 2.39    “Stock Appreciation Right” or
“SAR” means a right granted to a Grantee under Section 9 hereof. 
 2.40    “Stock Unit”
means a bookkeeping entry representing the equivalent of one share of Stock awarded to a Grantee pursuant to Section 10 hereof. 
 2.41    “Subsidiary” means any “subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code. 
 2.42    “Substitute Awards” means Awards granted upon assumption of, or in substitution for, outstanding awards previously granted by a company or other entity acquired by the
Company or any Affiliate or with which the Company or any Affiliate combines. 
 2.43    “Ten Percent Stockholder” means
an individual who owns more than ten percent (10%) of the total combined voting power of all classes of outstanding stock of the Company, its parent or any of its Subsidiaries. In determining stock ownership, the attribution rules of
Section 424(d) of the Code shall be applied. 
  

	3.	ADMINISTRATION OF THE PLAN 

 3.1.    Board

 The Board shall have such powers and authorities related to the administration of the Plan as are consistent with the Company’s certificate of
incorporation and by-laws and applicable law. The Board shall have full power and authority to take all actions and to make all determinations required or provided for under the Plan, any Award or any Award Agreement, and shall have full power and
authority to take all such other actions and make all such other determinations not inconsistent with the specific terms and provisions of the Plan that the Board deems to be necessary or appropriate to the administration of the Plan, any Award or
any Award Agreement. All such actions and determinations shall be by the affirmative vote of a majority of the members of the Board present at a meeting or by unanimous consent of the Board executed in writing in accordance with the Company’s
certificate of incorporation and by-laws and applicable law. The interpretation and construction by the Board of any provision of the Plan, any Award or any Award Agreement shall be final, binding and conclusive. 
 3.2.    Committee. 
 The Board has
delegated to the Committee the powers and authorities related to the administration and implementation of the Plan, as set forth in Section 3.1 above and other applicable provisions, consistent with the certificate of incorporation and
by-laws of the Company and applicable law. 
 (i)    Except as provided in Subsection (ii) and except as the Board
may otherwise determine, the Committee appointed by the Board to administer the Plan shall consist of two or more Outside Directors of the Company who: (a) qualify as “outside directors” within the meaning of Section 162(m) of
the Code and who (b) meet such other requirements as may be established from time to time by the Securities and Exchange Commission for plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act and
(c) who comply with the independence requirements of the stock exchange on which the Common Stock is listed. 
 (ii)    The Board may also appoint one or more separate committees of the Board, each composed of one or more directors of the Company who need not be Outside Directors, who may administer the Plan with respect to
employees or other Service Providers who are not officers or directors of the Company, may grant Awards under the Plan to such employees or other Service Providers, and may determine all terms of such Awards. 
 In the event that the Plan, any Award or any Award Agreement entered into hereunder provides for any action to be taken by or determination to be made by the Committee,
such action may be taken or such determination may be made by the Board. Unless otherwise expressly determined by the Board, any action or determination by the Committee shall be final, binding and conclusive. To the extent permitted by law, the
Committee may delegate its authority under the Plan to a member of the Board. 
  

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 3.3.    Terms of Awards. 
 Subject to the other terms and conditions of the Plan, the Committee shall have full and final authority to: 
 (i)    designate Grantees, 
 (ii)    determine the type or types of Awards to be made to a
Grantee, 
 (iii)    determine the number of shares of Stock to be subject to an Award, 
 (iv)    establish the terms and conditions of each Award (including, but not limited to, the exercise price of any Option, the nature
and duration of any restriction or condition (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of an Award or the shares of Stock subject thereto, and any terms or conditions that may be necessary to qualify
Options as Incentive Stock Options), 
 (v)    prescribe the form of each Award Agreement evidencing an Award, and

 (vi)    amend, modify, or supplement the terms of any outstanding Award. Such authority specifically includes the
authority, in order to effectuate the purposes of the Plan but without amending the Plan, to modify Awards to eligible individuals who are foreign nationals or are individuals who are employed outside the United States to recognize differences
in local law, tax policy, or custom. Notwithstanding the foregoing, no amendment, modification or supplement of any Award shall, without the consent of the Grantee, impair the Grantee’s rights under such Award other than amendments or
modifications necessary to comply with Section 409A and amendments pursuant to Section 5.3. 
 The Company may retain the right in an Award
Agreement to cause a forfeiture of the gain realized by a Grantee on account of actions taken by the Grantee in violation or breach of or in conflict with any employment agreement, non-competition agreement, any agreement prohibiting solicitation of
employees or clients of the Company or any Affiliate thereof or any confidentiality obligation with respect to the Company or any Affiliate thereof or otherwise in competition with the Company or any Affiliate thereof, to the extent specified in
such Award Agreement applicable to the Grantee. Furthermore, the Company may annul an Award if the Grantee is an employee of the Company or an Affiliate thereof and is terminated for Cause as defined in the applicable Award Agreement or the Plan, as
applicable. 
 Notwithstanding the foregoing, no amendment or modification may be made to an outstanding Option or SAR, including without limitation by
replacement of underwater Options or SARs with cash or other award type, that would be treated as a repricing under the rules of the stock exchange on which the Stock is listed or result in replacement of underwater Options or SARs with cash or
other award with an exercise price below the Fair Market Value as of the date of such replacement award, in each case, without the approval of the stockholders of the Company, provided, that, appropriate adjustments may be made to outstanding
Options and SARs pursuant to Section 17 or Section 5.3 and may be made to make changes to achieve compliance with applicable law, including Internal Revenue Code Section 409A. 
 3.4.    Deferral Arrangement. 
 The
Committee may permit or require the deferral of any award payment into a deferred compensation arrangement, subject to such rules and procedures as it may establish, which may include provisions for the payment or crediting of interest or dividend
equivalents, including converting such credits into deferred Stock equivalents, and restricting deferrals to comply with hardship distribution rules affecting 401(k) plans. Any such deferrals shall be made in a manner that complies with Code
Section 409A. 
 3.5.    No Liability. 
 No member of the Board or of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award or Award Agreement. 
 3.6.    Share Issuance/Book-Entry 
 Notwithstanding any provision of this Plan to the contrary, the issuance of the Stock under the Plan may be evidenced in such a manner as the Committee, in its discretion, deems appropriate, including, without limitation, book-entry
registration or issuance of one or more Stock certificates. 
  

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	4.	STOCK SUBJECT TO THE PLAN 

 Subject to adjustment as provided in
Section 17 hereof, the number of shares of Stock available for issuance under the Plan shall be twenty five million shares (25,000,000). Stock issued or to be issued under the Plan shall be authorized but unissued shares; or, to the
extent permitted by applicable law, issued shares that have been reacquired by the Company. If any shares covered by an Award are not purchased or are forfeited, or if an Award otherwise terminates without delivery of any Stock subject thereto, then
the number of shares of Stock counted against the aggregate number of shares available under the Plan with respect to such Award shall, to the extent of any such forfeiture or termination, again be available for making Awards under the Plan. The
number of shares available for issuance under the Plan shall be reduced by the number of shares subject to Options and SARs. Upon a grant of Awards other than Awards of Options or SARs, the number of shares available for issuance under the Plan
shall be reduced by 1.5 times the number of shares of Stock subject to such Awards. 
 The Committee shall have the right to substitute or assume Awards in
connection with mergers, reorganizations, separations, or other transactions to which Section 424(a) of the Code applies. The number of shares of Stock reserved pursuant to Section 4 may be increased by the corresponding number of
Awards assumed and, in the case of a substitution, by the net increase in the number of shares of Stock subject to Awards before and after the substitution. The Committee may adopt reasonable counting procedures to ensure appropriate counting, to
avoid double counting (as, for example, in the case of tandem or substitute awards) and to make adjustments if the number of shares of Stock actually delivered differs from the number of shares of Stock previously counted in connection with a Grant.

  

	5.	EFFECTIVE DATE, DURATION AND AMENDMENTS 

 5.1.    Effective Date. 
 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 of the Effective Date, any Awards made hereunder shall be null and void and of no effect. 
 5.2.    Term. 
 The Plan shall terminate
automatically ten (10) years after its adoption by the Board and may be terminated on any earlier date as provided in Section 5.3. 
 5.3.    Amendment and Termination of the Plan 
 The Board may, at any time and from time to time, amend, suspend,
or terminate the Plan as to any shares of Stock as to which Awards have not been made. An amendment shall be contingent on approval of the Company’s stockholders to the extent stated by the Board, required by applicable law or required by
applicable stock exchange listing requirements. In addition, an amendment will be contingent on approval of the Company’s stockholders if the amendment would: (i) materially increase the benefits accruing to participants under the Plan,
(ii) materially increase the aggregate number of shares of Stock that may be issued under the Plan, or (iii) materially modify the requirements as to eligibility for participation in the Plan. No Awards shall be made after termination of
the Plan. No amendment, suspension, or termination of the Plan shall, without the consent of the Grantee, impair rights or obligations under any Award theretofore awarded under the Plan. 
 5.4.    Additional Provisions 
 Any provision of the Plan or any Award Agreement
notwithstanding, the Committee may cause any Award granted hereunder to be amended, modified or cancelled in consideration of a cash payment, an alternative Award or both made to the holder of such cancelled Award equal to or greater than the Fair
Market Value of such cancelled Award. 
  

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	6.	AWARD ELIGIBILITY AND LIMITATIONS 

 6.1.    Service Providers and Other Persons 
 Subject to this Section 6, Awards may be made under the
Plan to: (i) any Service Provider to the Company or of any Affiliate, including any Service Provider who is an officer or director of the Company, or of any Affiliate, as the Committee shall determine and designate from time to time and
(ii) any other individual whose participation in the Plan is determined to be in the best interests of the Company by the Committee. 
 6.2.    Successive Awards and Substitute Awards. 
 An eligible person may receive more than one Award, subject to
such restrictions as are provided herein. Notwithstanding Sections 8.1 and 9.1, the Option Price of an Option or the grant price of an SAR that is a Substitute Award may be less than 100% of the Fair Market Value of a share of Common
Stock on the original date of grant; provided, that, the Option Price or grant price is determined in accordance with the principles of Code Section 424 and the regulations thereunder. 
 6.3.    Limitation on Shares of Stock Subject to Awards and Cash Awards. 
 During any time when the Company has a class of equity security registered under Section 12 of the Exchange Act: 
 (i)    the maximum number of shares of Stock subject to Options or SARs that can be awarded under the Plan to any person eligible for an Award under Section 6 hereof is one million five
hundred shares (1,500,000) per calendar year; provided, however, the maximum number of shares of Stock subject to Options or SARs that can be awarded under the Plan to any person eligible for an Award under Section 6 in the year that the
person is first employed by the Company is three million (3,000,000). 
 (ii)    the maximum number of shares that can be
awarded under the Plan, other than pursuant to an Option or SAR, to any person eligible for an Award under Section 6 hereof is one million (1,000,000) per calendar year; provided, however, the maximum number of shares of Stock
subject to Options or SARs that can be awarded under the Plan to any person eligible for an Award under Section 6 in the year that the person is first employed by the Company is two million (2,000,000). 
 (iii)    the maximum amount that may be earned as an Annual Incentive Award or other cash Award in any calendar year by any one
Grantee shall be $1,000,000 and the maximum amount that may be earned as a Performance Award or other cash Award in respect of a performance period of greater than one year by any one Grantee shall be $3,000,000. 
 The preceding limitations in this Section 6.3 are subject to adjustment as provided in Section 17 hereof. 
  

	7.	AWARD AGREEMENT 

 Each Award granted pursuant to the Plan shall be
evidenced by an Award Agreement, in such form or forms as the Committee shall from time to time determine. Award Agreements granted from time to time or at the same time need not contain similar provisions but shall be consistent with the terms of
the Plan. Each Award Agreement evidencing an Award of Options shall specify whether such Options are intended to be Non-qualified Stock Options or Incentive Stock Options, and in the absence of such specification such options shall be deemed
Non-qualified Stock Options. 
  

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	8.	TERMS AND CONDITIONS OF OPTIONS 

 8.1.    Option Price 
 The Option Price of each Option shall be fixed by the Committee and stated in the Award
Agreement evidencing such Option. The Option Price of each Option shall be at least the Fair Market Value on the Grant Date of a share of Stock; provided, however, that in the event that a Grantee is a Ten Percent Stockholder, the
Option Price of an Option granted to such Grantee that is intended to be an Incentive Stock Option shall be not less than 110 percent of the Fair Market Value of a share of Stock on the Grant Date. In no case shall the Option Price of any Option be
less than the par value of a share of Stock. 
 8.2.    Vesting. 
 Subject to Sections 8.3 and 17.3 hereof, each Option granted under the Plan shall become exercisable at such times and under such conditions as shall be determined
by the Committee and stated in the Award Agreement. For purposes of this Section 8.2, fractional numbers of shares of Stock subject to an Option shall be rounded down to the next nearest whole number. 
 8.3    Term. 
 Each Option granted under
the Plan shall terminate, and all rights to purchase shares of Stock thereunder shall cease, upon the expiration of ten years from the date such Option is granted, or under such circumstances and on such date prior thereto as is set forth in the
Plan or as may be fixed by the Committee and stated in the Award Agreement relating to such Option; provided, however, that in the event that the Grantee is a Ten Percent Stockholder, an Option granted to such Grantee that is intended
to be an Incentive Stock Option shall not be exercisable after the expiration of five years from its Grant Date. 
 8.4.    Termination of Service. 
 Each Award Agreement shall set forth the extent to which the Grantee shall have
the right to exercise the Option following termination of the Grantee’s Service. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the Plan, and may reflect
distinctions based on the reasons for termination of Service. 
 8.5.    Limitations on Exercise of Option. 
 Notwithstanding any other provision of the Plan, in no event may any Option be exercised, in whole or in part, prior to the date the Plan is approved by the stockholders
of the Company as provided herein or after the occurrence of an event referred to in Section 17 hereof which results in termination of the Option. 
 8.6.    Method of Exercise. 
 An Option that is exercisable may be exercised by the Grantee’s delivery to the
Company of written notice of exercise on any business day, at the Company’s principal office, on the form specified by the Company. Such notice shall specify the number of shares of Stock with respect to which the Option is being exercised and
shall be accompanied by payment in full of the Option Price of the shares for which the Option is being exercised plus the amount (if any) of federal and/or other taxes which the Company may, in its judgment, be required to withhold with respect to
an Award. The minimum number of shares of Stock with respect to which an Option may be exercised, in whole or in part, at any time shall be the lesser of (i) 100 shares or such lesser number set forth in the applicable Award Agreement and
(ii) the maximum number of shares available for purchase under the Option at the time of exercise. 
 8.7.    Rights of
Holders of Options 
 Unless otherwise stated in the applicable Award Agreement, an individual holding or exercising an Option shall have none of the
rights of a stockholder (for example, the right to receive cash or dividend payments or distributions attributable to the subject shares of Stock or to direct the voting of the subject shares of Stock ) until the shares of Stock covered thereby are
fully paid and issued to him. Except as provided in Section 17 hereof, no adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date of such issuance. 
  

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 8.8.    Delivery of Stock Certificates. 
 Promptly after the exercise of an Option by a Grantee and the payment in full of the Option Price, such Grantee shall be entitled to the issuance of a stock
certificate or certificates evidencing his or her ownership of the shares of Stock subject to the Option. Notwithstanding any other provision of this Plan to the contrary, the Company may elect to satisfy any requirement under this Plan for the
delivery of stock certificates through the use of book-entry. 
 8.9.    Transferability of Options 
 Except as provided in Section 8.10, during the lifetime of a Grantee, only the Grantee (or, in the event of legal incapacity or incompetency, the
Grantee’s guardian or legal representative) may exercise an Option. Except as provided in Section 8.10, no Option shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of descent
and distribution. 
 8.10.    Family Transfers. 
 If authorized in the applicable Award Agreement, a Grantee may transfer, not for value, all or part of an Option which is not an Incentive Stock Option to any Family Member. For the purpose of this
Section 8.10, a “not for value” transfer is a transfer which is (i) a gift, (ii) a transfer under a domestic relations order in settlement of marital property rights; or (iii) a transfer to an entity in which
more than fifty percent of the voting interests are owned by Family Members (or the Grantee) in exchange for an interest in that entity. Following a transfer under this Section 8.10, any such Option shall continue to be subject to the
same terms and conditions as were applicable immediately prior to transfer. Subsequent transfers of transferred Options are prohibited except to Family Members of the original Grantee in accordance with this Section 8.10 or by will or
the laws of descent and distribution. The events of termination of Service of Section 8.4 hereof shall continue to be applied with respect to the original Grantee, following which the Option shall be exercisable by the transferee only to
the extent, and for the periods specified, in Section 8.4. 
 8.11.    Limitations on Incentive Stock Options. 

 An Option shall constitute an Incentive Stock Option only (i) if the Grantee of such Option is an employee of the Company or any Subsidiary of the
Company; (ii) to the extent specifically provided in the related Award Agreement; and (iii) to the extent that the aggregate Fair Market Value (determined at the time the Option is granted) of the shares of Stock with respect to which all
Incentive Stock Options held by such Grantee become exercisable for the first time during any calendar year (under the Plan and all other plans of the Grantee’s employer and its Affiliates) does not exceed $100,000. This limitation shall be
applied by taking Options into account in the order in which they were granted. 
 8.12.    Notification of Disqualifying
Disposition 
 If any Grantee shall make any disposition of Shares issued pursuant to the exercise of an Incentive Stock Option under the
circumstances described in Code Section 421(b) (relating to certain disqualifying dispositions), such Grantee shall notify the Company of such disposition within ten (10) days thereof. 
  

	9.	TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS 

 9.1.    Right to Payment and Grant Price. 
 A SAR shall confer on the Grantee to whom it is granted a right to
receive, upon exercise thereof, the excess of (A) the Fair Market Value of one share of Stock on the date of exercise over (B) the grant price of the SAR as determined by the Committee. The Award Agreement for a SAR shall specify the grant
price of the SAR, which shall be at least the Fair Market Value of a share of Stock on the date of grant. SARs may be granted in conjunction with all or part of an Option granted under the Plan or at any subsequent time during the term of such
Option, in conjunction with all or part of any other Award or without regard to any Option or other Award; provided that an SAR that is granted subsequent to the Grant Date of a related Option must have an SAR Price that is no less than the Fair
Market Value of one share of Stock on the SAR Grant Date. 
  

 9 

 9.2.    Other Terms. 
 The Committee shall determine at the date of grant or thereafter, the time or times at which and the circumstances under which an SAR may be exercised in whole or in part (including based on achievement of performance
goals and/or future service requirements), the time or times at which SARs shall cease to be or become exercisable following termination of Service or upon other conditions, the method of exercise, method of settlement, form of consideration payable
in settlement, method by or forms in which Stock will be delivered or deemed to be delivered to Grantees, whether or not an SAR shall be in tandem or in combination with any other Award, and any other terms and conditions of any SAR. 
 9.3.    Term. 
 Each SAR granted under the
Plan shall terminate, and all rights to purchase shares of Stock thereunder shall cease, upon the expiration of ten years from the date such SAR is granted, or under such circumstances and on such date prior thereto as is set forth in the Plan or as
may be fixed by the Committee and stated in the Award Agreement relating to such SAR. 
 9.4.    Transferability of SARS 

 Except as provided in Section 9.5, during the lifetime of a Grantee, only the Grantee (or, in the event of legal incapacity or incompetency,
the Grantee’s guardian or legal representative) may exercise a SAR. Except as provided in Section 9.5, no SAR shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of descent and
distribution. 
 9.5.    Family Transfers. 
 If authorized in the applicable Award Agreement, a Grantee may transfer, not for value, all or part of a SAR to any Family Member. For the purpose of this Section 9.5, a “not for value” transfer
is a transfer which is (i) a gift, (ii) a transfer under a domestic relations order in settlement of marital property rights; or (iii) a transfer to an entity in which more than fifty percent of the voting interests are owned by
Family Members (or the Grantee) in exchange for an interest in that entity. Following a transfer under this Section 9.5, any such SAR shall continue to be subject to the same terms and conditions as were applicable immediately prior to
transfer. Subsequent transfers of transferred SARs are prohibited except to Family Members of the original Grantee in accordance with this Section 9.5 or by will or the laws of descent and distribution. 
  

	10.	TERMS AND CONDITIONS OF RESTRICTED STOCK AND STOCK UNITS 

 10.1.    Grant of Restricted Stock. 
 Awards of Restricted Stock or Stock Units may be made for no consideration
(other than par value of the shares which is deemed paid by Services already rendered). 
 10.2.    Restrictions.

 At the time a grant of Restricted Stock or Stock Units is made, the Committee may, in its sole discretion, establish a period of time (a
“restricted period”) applicable to such Restricted Stock or Stock Units. Each Award of Restricted Stock or Stock Units may be subject to a different restricted period. The Committee may, in its sole discretion, at the time a grant of
Restricted Stock or Stock Units is made, prescribe restrictions in addition to or other than the expiration of the restricted period, including the satisfaction of corporate or individual performance objectives, which may be applicable to all or any
portion of the Restricted Stock or Stock Units in accordance with Section 14.1 and 14.2. Restricted Stock, Stock Units Awards or Other Stock- Based Awards may be granted or sold as described in the preceding sentence in respect of
past or future services and other valid consideration, or in lieu of, or in addition to, any cash compensation due to such Grantee. Restricted Stock for which vesting may be accelerated by achieving performance targets shall not vest in full in less
than one (1) year from the Grant Date. Neither Restricted Stock nor Stock Units may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the restricted period or prior to the satisfaction of any other
restrictions prescribed by the Committee with respect to such Restricted Stock or Stock Units. 
  

 10 

 10.3.    Restricted Stock Certificates. 
 The Company shall issue, in the name of each Grantee to whom Restricted Stock has been granted, stock certificates representing the total number of shares of Restricted
Stock granted to the Grantee, as soon as reasonably practicable after the Grant Date. The Committee may provide in an Award Agreement that either (i) the Secretary of the Company shall hold such certificates for the Grantee’s benefit until
such time as the Restricted Stock is forfeited to the Company or the restrictions lapse, or (ii) such certificates shall be delivered to the Grantee, provided, however, that such certificates shall bear a legend or legends that
comply with the applicable securities laws and regulations and makes appropriate reference to the restrictions imposed under the Plan and the Award Agreement. Notwithstanding any other provision of this Plan to the contrary, the Company may elect to
satisfy any requirement under this Plan for the delivery of stock certificates through the use of book-entry. 
 10.4.    Rights of
Holders of Restricted Stock. 
 Unless the Committee otherwise provides in an Award Agreement, holders of Restricted Stock shall have the right to
vote such Stock and the right to receive any dividends declared or paid with respect to such Stock. The Committee may provide that any dividends paid on Restricted Stock must be reinvested in shares of Stock, which may or may not be subject to the
same vesting conditions and restrictions applicable to such Restricted Stock. All distributions, if any, received by a Grantee with respect to Restricted Stock as a result of any stock split, stock dividend, combination of shares, or other similar
transaction shall be subject to the restrictions applicable to the original Grant. 
 10.5.    Rights of Holders of Stock Units.

 10.5.1    Voting and Dividend Rights. 
 Holders of Stock Units shall have no rights as stockholders of the Company. The Committee may provide in an Award Agreement evidencing a grant of Stock Units that the holder of such Stock Units shall be entitled to
receive, upon the Company’s payment of a cash dividend on its outstanding Stock, a cash payment for each Stock Unit held equal to the per-share dividend paid on the Stock. Such Award Agreement may also provide that such cash payment will be
deemed reinvested in additional Stock Units at a price per unit equal to the Fair Market Value of a share of Stock on the date that such dividend is paid. 
 10.5.2    Creditor’s Rights. 
 A holder of Stock Units shall have no rights other than those
of a general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Award Agreement. 
 10.6.    Termination of Service. 
 Unless the Committee otherwise provides in an Award
Agreement or in writing after the Award Agreement is issued, upon the termination of a Grantee’s Service, any Restricted Stock or Stock Units held by such Grantee that have not vested, or with respect to which all applicable restrictions and
conditions have not lapsed, shall immediately be deemed forfeited. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Restricted Stock and Stock Unit Awards issued pursuant to the Plan, and may
reflect distinctions based on the reasons for termination of Service. Upon forfeiture of Restricted Stock or Stock Units, the Grantee shall have no further rights with respect to such Award, including but not limited to any right to vote Restricted
Stock or any right to receive dividends with respect to shares of Restricted Stock or Stock Units. 
 10.7.    Purchase of
Restricted Stock. 
 The Grantee shall be required, to the extent required by applicable law, to purchase the Restricted Stock from the Company at a
Purchase Price equal to the greater of (i) the aggregate par value of the shares of Stock represented by such Restricted Stock or (ii) the Purchase Price, if any, specified in the Award Agreement relating to such Restricted Stock. The
Purchase Price shall be payable in a form described in Section 11 or, in the discretion of the Committee, in consideration for past or future Services rendered to the Company or an Affiliate. 
  

 11 

 10.8.    Delivery of Stock. 
 Upon the expiration or termination of any restricted period and the satisfaction of any other conditions prescribed by the Committee, the restrictions applicable to
shares of Restricted Stock or Stock Units settled in Stock shall lapse, and, unless otherwise provided in the Award Agreement, a stock certificate for such shares shall be delivered, free of all such restrictions, to the Grantee or the
Grantee’s beneficiary or estate, as the case may be. Neither the Grantee, nor the Grantee’s beneficiary or estate, shall have any further rights with regard to a Stock Unit once the share of Stock represented by the Stock Unit has been
delivered. 
  

	11.	FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK 

 11.1.    General Rule. 
 Payment of the Option Price for the shares purchased pursuant to the exercise of an
Option or the Purchase Price for Restricted Stock shall be made in cash or in cash equivalents acceptable to the Company. 
 11.2.    Surrender of Stock. 
 To the extent the Award Agreement so provides, payment of the Option Price for
shares purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Stock, if any, may be made all or in part through the tender to the Company of shares of Stock, which shall be valued, for purposes of determining the extent
to which the Option Price or Purchase Price has been paid thereby, at their Fair Market Value on the date of exercise or surrender. 
 11.3.    Cashless Exercise. 
 With respect to an Option only (and not with respect to Restricted Stock), to the
extent permitted by law and to the extent the Award Agreement so provides, payment of the Option Price for shares purchased pursuant to the exercise of an Option may be made all or in part by delivery (on a form acceptable to the Committee) of an
irrevocable direction to a licensed securities broker acceptable to the Company to sell shares of Stock and to deliver all or part of the sales proceeds to the Company in payment of the Option Price and any withholding taxes described in
Section 18.3. 
 11.4.    Other Forms of Payment. 
 To the extent the Award Agreement so provides, payment of the Option Price for shares purchased pursuant to exercise of an Option or the Purchase Price for Restricted Stock may be made in any other form that is
consistent with applicable laws, regulations and rules. 
  

	12.	TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS 

 12.1.    Dividend Equivalent Rights. 
 A Dividend Equivalent Right is an Award entitling the recipient to receive
credits based on cash distributions that would have been paid on the shares of Stock specified in the Dividend Equivalent Right (or other award to which it relates) if such shares had been issued to and held by the recipient. A Dividend Equivalent
Right may be granted hereunder to any Grantee. The terms and conditions of Dividend Equivalent Rights shall be specified in the grant. Dividend equivalents credited to the holder of a Dividend Equivalent Right may be paid currently or may be deemed
to be reinvested in additional shares of Stock, which may thereafter accrue additional equivalents. Any such reinvestment shall be at Fair Market Value on the date of reinvestment. Dividend Equivalent Rights may be settled in cash or Stock or a
combination thereof, in a single installment or installments, all determined in the sole discretion of the Committee. A Dividend Equivalent Right granted as a component of another Award may provide that such Dividend Equivalent Right shall be
settled upon exercise, settlement, or payment of, or lapse of restrictions on, such other award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under the same conditions as such other award. A Dividend Equivalent
Right granted as a component of another Award may also contain terms and conditions different from such other award. 
  

 12 

 12.2.    Termination of Service. 
 Except as may otherwise be provided by the Committee either in the Award Agreement or in writing after the Award Agreement is issued, a Grantee’s rights in all
Dividend Equivalent Rights or interest equivalents shall automatically terminate upon the Grantee’s termination of Service for any reason. 
  

	13.	OTHER STOCK-BASED AWARDS 

 The Committee shall have the discretion
and authority to grant to eligible persons an “Other Stock-Based Award,” which shall consist of any right that is (i) not an Award previously described in this Plan and (ii) an Award of Shares or an Award denominated or payable
in, valued in whole or in part by reference to, or otherwise based on or related to, Shares (including, without limitation, securities or rights convertible into Shares), as deemed by the Committee to be consistent with the purposes of the Plan.
Subject to the terms of the Plan and any applicable Award Agreement, the Committee shall determine the terms and conditions of any such Other Stock-Based Award. 
  

	14.	TERMS AND CONDITIONS OF Performance and Annual Incentive Awards 

 14.1.    Performance Conditions 
 The right of a Grantee to exercise or receive a grant or settlement of any
Award, and the timing thereof, may be subject to such performance conditions as may be specified by the Committee. The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any
performance conditions, and may exercise its discretion to reduce the amounts payable under any Award subject to performance conditions, except as limited under Sections 14.2 hereof in the case of a Performance Award or Annual Incentive Award
intended to qualify under Code Section 162(m). If and to the extent required under Code Section 162(m), any power or authority relating to a Performance Award or Annual Incentive Award intended to qualify under Code Section 162(m),
shall be exercised by the Committee and not the Board. 
 14.2.    Performance or Annual Incentive Awards Granted to Designated
Covered Employees 
 If and to the extent that the Committee determines that a Performance or Annual Incentive Award to be granted to a Grantee who is
designated by the Committee as likely to be a Covered Employee should qualify as “performance-based compensation” for purposes of Code Section 162(m), the grant, exercise and/or settlement of such Performance or Annual Incentive Award
shall be contingent upon achievement of pre-established performance goals and other terms set forth in this Section 14.2. 
 14.2.1    Performance Goals Generally. 
 The performance goals for such Performance or Annual Incentive Awards shall
consist of one or more business criteria and a targeted level or levels of performance with respect to each of such criteria, as specified by the Committee consistent with this Section 14.2. Performance goals shall be objective and shall
otherwise meet the requirements of Code Section 162(m) and regulations thereunder including the requirement that the level or levels of performance targeted by the Committee result in the achievement of performance goals being
“substantially uncertain.” The Committee may determine that such Performance or Annual Incentive Awards shall be granted, exercised and/or settled upon achievement of any one performance goal or that two or more of the performance goals
must be achieved as a condition to grant, exercise and/or settlement of such Performance or Annual Incentive Awards. Performance goals may differ for Performance or Annual Incentive Awards granted to any one Grantee or to different Grantees.

 14.2.2    Business Criteria. 
 One or more of the following business criteria for the Company, on a consolidated basis, and/or specified subsidiaries or business units of the Company (except with respect to the total stockholder return and earnings
per share criteria), shall be used by the Committee (and not by the Board) in establishing performance goals for such Performance or Annual Incentive Awards: (1) total stockholder return; (2) such total stockholder return as compared to
total return (on a comparable basis) of a publicly available index such as, but not limited to, the Standard & Poor’s 500 Stock Index; (3) net income; (4) pretax earnings; (5) earnings before interest expense, taxes,
depreciation and amortization, with or without adjustments used from time to time by the Company in its publicly filed financial statements; (6) pretax operating earnings after interest expense and before bonuses, service fees, and
extraordinary or special items; (7) operating 

  

 13 

 
margin; (8) earnings per share; (9) return on equity; (10) return on capital; (11) return on investment; (12) operating earnings;
(13) working capital; (14) ratio of debt to stockholders’ equity (15) revenue; (16) subscribers; (17) conversion ratio; (18) subscriber acquisition cost or cost per gross add; and (19) any other business
criteria used in the Company’s publicly announced guidance. Business criteria may be measured on an absolute basis or on a relative basis (i.e., performance relative to peer companies) and on a GAAP or non-GAAP basis. The Committee may provide,
in a manner that meets the requirements of Code Section 162(m) that any evaluation of performance may include or exclude any of the following events that occur during the applicable performance period: (a) asset write-downs;
(b) litigation or claim judgments or settlements; (c) the effect of changes in tax laws, accounting principles or other laws or provisions affecting reported results; (d) any reorganization or restructuring programs;
(e) extraordinary nonrecurring items; (f) acquisitions or divestitures; and (g) foreign exchange gains and losses. 
 14.2.3.    Timing For Establishing Performance Goals. 
 Performance goals shall be established not later than 90 days
after the beginning of any performance period applicable to such Performance or Annual Incentive Awards, or at such other date as may be required or permitted for “performance-based compensation” under Code Section 162(m). 

14.2.4.    Settlement of Performance or Annual Incentive Awards; Other Terms. 
 Settlement of such Performance or Annual Incentive Awards shall be in cash, Stock, other Awards or other property, in the discretion of the Committee. The Committee may,
in its discretion, reduce the amount of a settlement otherwise to be made in connection with such Performance or Annual Incentive Awards. The Committee shall specify the circumstances in which such Performance or Annual Incentive Awards shall be
paid or forfeited in the event of termination of Service by the Grantee prior to the end of a performance period or settlement of Performance Awards. 
 14.3.    Written Determinations. 
 All determinations by the Committee as to the establishment of performance
goals, the amount of any potential Performance Awards and as to the achievement of performance goals relating to Performance Awards, and the amount of any potential individual Annual Incentive Awards and the amount of final Annual Incentive Awards,
shall be made in writing in the case of any Award intended to qualify under Code Section 162(m). To the extent permitted by Section 162(m), the Committee may delegate any responsibility relating to such Performance Awards or Annual
Incentive Awards. 
 14.4.    Status of Section 14.2 Awards Under Code Section 162(m) 
 It is the intent of the Company that Performance Awards and Annual Incentive Awards under Section 14.2 hereof granted to persons who are designated by the
Committee as likely to be Covered Employees within the meaning of Code Section 162(m) and regulations thereunder shall, if so designated by the Committee, constitute “qualified performance-based compensation” within the meaning of
Code Section 162(m) and regulations thereunder. Accordingly, the terms of Section 14.2, including the definitions of Covered Employee and other terms used therein, shall be interpreted in a manner consistent with Code
Section 162(m) and regulations thereunder. The foregoing notwithstanding, because the Committee cannot determine with certainty whether a given Grantee will be a Covered Employee with respect to a fiscal year that has not yet been completed,
the term Covered Employee as used herein shall mean only a person designated by the Committee, at the time of grant of Performance Awards or an Annual Incentive Award, as likely to be a Covered Employee with respect to that fiscal year. If any
provision of the Plan or any agreement relating to such Performance Awards or Annual Incentive Awards does not comply or is inconsistent with the requirements of Code Section 162(m) or regulations thereunder, such provision shall be construed
or deemed amended to the extent necessary to conform to such requirements. 
  

	15.	PARACHUTE LIMITATIONS 

 Notwithstanding any other provision of this
Plan or of any other agreement, contract, or understanding heretofore or hereafter entered into by a Grantee with the Company or any Affiliate, except an agreement, contract, or understanding that expressly addresses Section 280G or
Section 4999 of the Code (an “Other Agreement”), and notwithstanding any formal or informal plan or other arrangement for the direct or indirect provision of compensation to the Grantee (including groups or classes of Grantees or
beneficiaries 

  

 14 

 
of which the Grantee 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 Grantee (a
“Benefit Arrangement”), if the Grantee is a “disqualified individual,” as defined in Section 280G(c) of the Code, any Option, Restricted Stock or Stock Unit held by that Grantee 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 Grantee under this Plan, all
Other Agreements, and all Benefit Arrangements, would cause any payment or benefit to the Grantee under this Plan to be considered a “parachute payment” within the meaning of Section 280G(b)(2) of the Code as then in effect (a
“Parachute Payment”) and (ii) if, as a result of receiving a Parachute Payment, the aggregate after-tax amounts received by the Grantee 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 Grantee 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 Grantee under any Other Agreement or any Benefit Arrangement would cause the Grantee 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 Grantee as described in clause (ii) of the preceding sentence, then the Grantee shall have the right, in the Grantee’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 Grantee under this Plan be deemed to be a Parachute Payment.

  

	16.	REQUIREMENTS OF LAW 

 16.1.    General.

 The Company shall not be required to sell or issue any shares of Stock under any Award if the sale or issuance of such shares would constitute a
violation by the Grantee, any other individual exercising an Option, or the Company of any provision of any law or regulation of any governmental authority, including without limitation any federal or state securities laws or regulations. If at any
time the Company shall determine, in its discretion, that the listing, registration or qualification of any shares subject to an Award upon any securities exchange or under any governmental regulatory body is necessary or desirable as a condition
of, or in connection with, the issuance or purchase of shares hereunder, no shares of Stock may be issued or sold to the Grantee or any other individual exercising an Option pursuant to such Award unless such listing, registration, qualification,
consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of the Award. Without limiting the generality of the
foregoing, in connection with the Securities Act, upon the exercise of any Option or any SAR that may be settled in shares of Stock or the delivery of any shares of Stock underlying an Award, unless a registration statement under such Act is in
effect with respect to the shares of Stock covered by such Award, the Company shall not be required to sell or issue such shares unless the Committee has received evidence satisfactory to it that the Grantee or any other individual exercising an
Option may acquire such shares pursuant to an exemption from registration under the Securities Act. Any determination in this connection by the Committee shall be final, binding, and conclusive. The Company may, but shall in no event be obligated
to, register any securities covered hereby pursuant to the Securities Act. The Company shall not be obligated to take any affirmative action in order to cause the exercise of an Option or a SAR or the issuance of shares of Stock pursuant to the Plan
to comply with any law or regulation of any governmental authority. As to any jurisdiction that expressly imposes the requirement that an Option (or SAR that may be settled in shares of Stock) shall not be exercisable until the shares of Stock
covered by such Option (or SAR) are registered or are exempt from registration, the exercise of such Option (or SAR) (under circumstances in which the laws of such jurisdiction apply) shall be deemed conditioned upon the effectiveness of such
registration or the availability of such an exemption. 
 16.2.    Rule 16b-3. 
 During any time when the Company has a class of equity security registered under Section 12 of the Exchange Act, it is the intent of the Company that Awards pursuant
to the Plan and the exercise of Options and SARs granted hereunder will qualify for the exemption provided by Rule 16b-3 under the Exchange Act. To the extent that any provision of the Plan or action by the Committee does not comply with the
requirements of Rule 16b-3, it shall be deemed inoperative to the extent permitted by law and deemed advisable by the Committee, and shall not affect the validity of the Plan. In the event that Rule 16b-3 is revised or replaced, the Committee may
exercise its discretion to modify this Plan in any respect necessary to satisfy the requirements of, or to take advantage of any features of, the revised exemption or its replacement. 
  

 15 

	17.	EFFECT OF CHANGES IN CAPITALIZATION 

 17.1.    Changes in Stock. 
 If the number of outstanding shares of Stock is increased or decreased or the shares
of Stock are changed into or exchanged for a different number or kind of shares or other securities of the Company on account of any recapitalization, reclassification, stock split, reverse split, combination of shares, exchange of shares, stock
dividend or other distribution payable in capital stock, or other increase or decrease in such shares effected without receipt of consideration by the Company occurring after the Effective Date, the number and kinds of shares for which grants of
Options and other Awards may be made under the Plan shall be adjusted proportionately and accordingly by the Company. In addition, the number and kind of shares for which Awards are outstanding shall be adjusted proportionately and accordingly so
that the proportionate interest of the Grantee immediately following such event shall, to the extent practicable, be the same as immediately before such event. Any such adjustment in outstanding Options or SARs shall not change the aggregate Option
Price or SAR Exercise Price payable with respect to shares that are subject to the unexercised portion of an outstanding Option or SAR, as applicable, but shall include a corresponding proportionate adjustment in the Option Price or SAR Exercise
Price per share. The conversion of any convertible securities of the Company shall not be treated as an increase in shares effected without receipt of consideration. Notwithstanding the foregoing, in the event of any distribution to the
Company’s stockholders of securities of any other entity or other assets (including an extraordinary dividend but excluding a non-extraordinary dividend of the Company) without receipt of consideration by the Company, the Company shall, in such
manner as the Company deems appropriate, adjust (i) the number and kind of shares subject to outstanding Awards and/or (ii) the exercise price of outstanding Options and Stock Appreciation Rights to reflect such distribution. 

 

	17.2.    Reorganization	 	in Which the Company Is the Surviving Entity Which does not Constitute a Corporate Transaction. 

 Subject to Section 17.3 hereof, if the Company shall be the surviving entity in any reorganization, merger, or consolidation of the Company with one or more
other entities which does not constitute a Corporate Transaction, any Option or SAR theretofore granted pursuant to the Plan shall pertain to and apply to the securities to which a holder of the number of shares of Stock subject to such Option or
SAR would have been entitled immediately following such reorganization, merger, or consolidation, with a corresponding proportionate adjustment of the Option Price or SAR Exercise Price per share so that the aggregate Option Price or SAR Exercise
Price thereafter shall be the same as the aggregate Option Price or SAR Exercise Price of the shares remaining subject to the Option or SAR immediately prior to such reorganization, merger, or consolidation. Subject to any contrary language in an
Award Agreement evidencing an Award, any restrictions applicable to such Award shall apply as well to any replacement shares received by the Grantee as a result of the reorganization, merger or consolidation. In the event of a transaction described
in this Section 17.2, Stock Units shall be adjusted so as to apply to the securities that a holder of the number of shares of Stock subject to the Stock Units would have been entitled to receive immediately following such transaction.

 17.3.    Corporate Transaction. 
 Subject to the exceptions set forth in the last sentence of this Section 17.3 and the last sentence of Section 17.4, upon the occurrence of a Corporate Transaction:  
 (i)    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 and shall remain exercisable for a period of fifteen days, or 
 (B)    the Committee 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 Committee 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. 
  

 16 

 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 Committee 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. This Section 17.3 shall not apply to any Corporate Transaction to the extent that 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
(an “Equivalent Award”), in which event the Plan, Options, SARs, Stock Units and Restricted Stock theretofore granted shall continue in the manner and under the terms so provided. If the Grantee receives an Equivalent Award in connection
with a Corporate Transaction and his employment is terminated by the Company without Cause or by the employee with Good Reason within one year following the Corporate Transaction, the Equivalent Award may be exercised in full beginning on the date
of such termination and for such period as the Committee shall determine. 
 17.4.    Adjustments. 
 Adjustments under this Section 17 related to shares of Stock or securities of the Company shall be made by the Committee, whose determination in that respect
shall be final, binding and conclusive. No fractional shares or other securities shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case by rounding downward to the
nearest whole share. The Committee shall determine the effect of a Corporate Transaction upon Awards other than Options, SARs, Stock Units and Restricted Stock, and such effect shall be set forth in the appropriate Award Agreement. The Committee may
provide in the Award Agreements at the time of grant, or any time thereafter with the consent of the Grantee, for different provisions to apply to an Award in place of those described in Sections 17.1, 17.2 and 17.3. 
 17.5.    No Limitations on Company. 
 The
making of Awards pursuant to the Plan shall not affect or limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure or to merge, consolidate, dissolve,
or liquidate, or to sell or transfer all or any part of its business or assets. 
  

	18.	GENERAL PROVISIONS 

 18.1.    Disclaimer
of Rights 
 No provision in the Plan or in any Award or Award Agreement shall be construed to confer upon any individual the right to remain in the
employ or service of the Company or any Affiliate, or to interfere in any way with any contractual or other right or authority of the Company either to increase or decrease the compensation or other payments to any individual at any time, or to
terminate any employment or other relationship between any individual and the Company. In addition, notwithstanding anything contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement, no Award granted under the
Plan shall be affected by any change of duties or position of the Grantee, so long as such Grantee continues to be a director, officer, consultant or employee of the Company or an Affiliate. The obligation of the Company to pay any benefits pursuant
to this Plan shall be interpreted as a contractual obligation to pay only those amounts described herein, in the manner and under the conditions prescribed herein. The Plan shall in no way be interpreted to require the Company to transfer any
amounts to a third party trustee or otherwise hold any amounts in trust or escrow for payment to any Grantee or beneficiary under the terms of the Plan. 
 18.2.    Nonexclusivity of the Plan 
 Neither the adoption of the Plan nor the submission of the Plan to the
stockholders of the Company for approval shall be construed as creating any limitations upon the right and authority of the Committee to adopt such other incentive compensation arrangements (which arrangements may be applicable either generally to a
class or classes of individuals or specifically to a particular individual or particular 

  

 17 

 
individuals) as the Committee in its discretion determines desirable, including, without limitation, the granting of equity awards otherwise than under the
Plan. 
 18.3.    Withholding Taxes 
 The Company or an Affiliate, as the case may be, shall have the right to deduct from payments of any kind otherwise due to a Grantee any federal, state, or local taxes of any kind required by law to be withheld with respect to the vesting
of or other lapse of restrictions applicable to an Award or upon the issuance of any shares of Stock upon the exercise of an Option or pursuant to an Award. At the time of such vesting, lapse, or exercise, the Grantee shall pay to the Company or the
Affiliate, as the case may be, any amount that the Company or the Affiliate may reasonably determine to be necessary to satisfy such withholding obligation. Subject to the prior approval of the Company or the Affiliate, which may be withheld by the
Company or the Affiliate, as the case may be, in its sole discretion, the Grantee may elect to satisfy such obligations, in whole or in part, (i) by causing the Company or the Affiliate to withhold shares of Stock otherwise issuable to the
Grantee or (ii) by delivering to the Company or the Affiliate shares of Stock already owned by the Grantee. The shares of Stock so delivered or withheld shall have an aggregate Fair Market Value equal to such withholding obligations. The Fair
Market Value of the shares of Stock used to satisfy such withholding obligation shall be determined by the Company or the Affiliate as of the date that the amount of tax to be withheld is to be determined. A Grantee who has made an election pursuant
to this Section 18.3 may satisfy his or her withholding obligation only with shares of Stock that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements. The maximum number of shares of Stock
that may be withheld from any Award to satisfy any federal, state or local tax withholding requirements upon the exercise, vesting, lapse of restrictions applicable to such Award or payment of shares pursuant to such Award, as applicable, cannot
exceed such number of shares having a Fair Market Value equal to the minimum statutory amount required by the Company to be withheld and paid to any such federal, state or local taxing authority with respect to such exercise, vesting, lapse of
restrictions or payment of shares. 
 18.4.    Captions 
 The use of captions in this Plan or any Award Agreement is for the convenience of reference only and shall not affect the meaning of any provision of the Plan or such Award Agreement. 
 18.5.    Other Provisions 
 Each Award
granted under the Plan may contain such other terms and conditions not inconsistent with the Plan as may be determined by the Committee, in its sole discretion. 
 18.6.    Number and Gender 
 With respect to words used in this Plan, the singular form shall include the plural
form, the masculine gender shall include the feminine gender, etc., as the context requires. 
 18.7.    Severability

 If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the
remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction. 
 18.8.    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. 
  

 18 

 18.9.    Section 409A of the Code 
 The Committee intends to comply with Section 409A of the Code (“Section 409A”), or an exemption to Section 409A, with regard to Awards hereunder that
constitute nonqualified deferred compensation within the meaning of Section 409A. To the extent that the Committee determines that a Grantee would be subject to the additional 20% tax imposed on certain nonqualified deferred compensation plans
pursuant to Section 409A as a result of any provision of any Award granted under this Plan, such provision may 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. 
 *    *    * 
  

 19 

 To record adoption of the Plan by the Board in April 2007, and approval of the Plan by the stockholders on May 25,
2007, the Company has caused its authorized officer to execute the Plan. 
  

					
		 		 	XM SATELLITE RADIO HOLDINGS INC.
			
	 	 	 By:
	 	 /s/    Joseph M. Titlebaum

		 	 Title:
	 	General Counsel & Secretary

  

 20Consultancy Agreement

 Consultancy Agreement 
  

	(1)	Cambridge Display Technology Limited 

  

	(2)	Suk-Bae Cha 

 Dated 1 July 2007 

 Contents 
  

			
	 1. Definitions and interpretation
	  	1
	 2. Appointment
	  	2
	 3. Term of appointment
	  	2
	 4. Consultancy services
	  	3
	 5. Commitment
	  	4
	 6. Fee
	  	4
	 7. Termination of appointment
	  	5
	 8. Restrictions
	  	5
	 9. Acknowledgment by the Consultant
	  	6
	 10. Company Property
	  	7
	 11. Intellectual Property
	  	7
	 12. Conflict of interest
	  	8
	 13. Nature of consultancy
	  	8
	 14. General
	  	9
	 15. Notices
	  	10
	 16. Governing law and jurisdiction
	  	10

 This Agreement is made the 1st day of July 2007 
 Between: 
  

	(1)	Cambridge Display Technology Limited whose registered office is at Building 2020, Cambourne Business Park, Cambridgeshire, CB3 6DW (“the Company”); and

  

	(2)	The consultancy business of Suk-bae Cha of Azabu Terrace AP7 #501, 5-16-35 Roppongi, Minatu-Ku, Tokyo, Japan 106-0032 (“the Consultant”).

 It is agreed as follows: 
  

	1.	Definitions and interpretation 

  

	1.1	In this Agreement, unless the context otherwise requires, the following words shall have the following meaning: 

  

			
	“this Agreement”	 	this Agreement (including any schedule or annexure to it and any document in agreed form);
		
	“Businesses”	 	all and any trades or other commercial activities of the Group:
		
		 	 (a)    with which the Consultant shall have been concerned or involved to any material extent at any time during its
engagement by the Company;

		
		 	 (b)    which any Group Company shall at the Termination Date have determined to carry on with a view to profit in the
immediate or foreseeable future and in relation to which the Consultant shall at the Termination Date possess any Confidential Information;

		
	“Confidential Information”	 	all and any, know-how, data and corporate, marketing, financial, personnel and technical and other confidential business information for any type or nature, or in any format (whether or not
recorded in documentary form or on computer disk or tape)
		
		 	 (a)    which the Consultant shall acquire

  

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		 	 at any time during its engagement by the Company but which does not form part of the Consultant’s own stock in trade; and

		
		 	 (b)    which is not readily ascertainable to persons not connected with any Group Company either at all or without a
significant expenditure of labour, skill or money;

		
	“the Group”	 	the group of companies comprising every Group Company;
		
	“Group Companies”	 	the Company, its subsidiaries, affiliates, any holding company and any subsidiary of any such holding Company and “Group Company” means any of them;
		
	“Services”	 	the consultancy services of the Consultant to be provided under this Agreement;
		
	“Termination Date”	 	30 November 2007 the date on which the Consultant shall cease to be engaged by the Company in any of the Businesses, or such earlier date as this agreement is terminated pursuant to
clause 3.2.

  

	2.	Appointment 

  

	2.1	The Company agrees to engage the Consultant and the Consultant agrees to provide the Services to the Company for the purposes of the Businesses on the terms and subject to the
conditions set out below. 

  

	2.2	The Consultant warrants that it has the full power and authority and is free to enter into this Agreement and is not bound by or subject to any court order, arrangement, obligation,
restriction or undertaking (contractual or otherwise) which prohibits or restricts the Consultant from entering into this Agreement and performing the Services. 

  

	3.	Term of appointment 

  

	3.1	The Consultant shall be engaged by the Company (subject as provided) in this Agreement with effect from 1 July 2007 until the Termination Date. The Termination Date may be
extended by written agreement between the parties. 

  

	 3.2
	 This Agreement may be terminated before 30th November 2007 by either party without notice. 

  

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	3.3	Where this Agreement is terminated in accordance with clause 3.2 the Consultant will be paid the relevant fee (subject to clause 6 below) in respect of any work completed prior to
the Termination Date to the reasonable satisfaction of the Company. 

  

	4.	Consultancy services 

  

	4.1	The Consultant shall advise and assist the Company in all aspects of its Strategic and Operational Commercial and Business Development activities, including, in particular ensuring
comprehensive advice on potential revenue and/or funding opportunities in key Asian markets. 

  

	4.2	The Consultant warrants that it has the requisite skill, qualification and experience to perform the Services. 

  

	4.3	The Consultant may appoint such persons as it considers appropriate to provide the Services under this Agreement, subject to the prior written consent of the Company.

  

	4.4	Should the Consultant appoint any person or persons to assist in the provision of Services under this Agreement, the Consultant shall: 

  

	 	(a)	remain at all times wholly responsible for those persons including, but not limited to, any act or omission and the cost of hiring and training such persons;

  

	 	(b)	ensure that any appointed person acts in accordance with this Agreement; 

  

	 	(c)	ensure that any appointed person has the requisite skill, qualification and experience to perform the Services under this Agreement. 

  

	4.5	Although the Consultant shall not be subject to direction from the Company as to the manner in which it shall perform its functions under this Agreement, the Consultant shall
perform such functions as shall be requested of the Consultant by the Company. 

  

	4.6	The Consultant may be required, in pursuance of its obligations under this Agreement, to provide its Services not only to the Company but also to other Group Companies.

  

	4.7	In providing the Services under this Agreement the Consultant shall: 

  

	 	(a)	at all times exercise the highest professional standards; 

  

	 	(b)	comply with all applicable statutory or other reasonable rules and obligations including, but not limited to, those relating to health and safety and information security;

  

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	 	(c)	notify the Company immediately in writing if it should become insolvent, dissolved or subject to a winding up petition; 

  

	 	(d)	not engage in any conduct detrimental to the interests of the Company which includes any conduct tending to bring the Company into disrepute or which results in the loss of custom
or business for the Company; and 

  

	 	(e)	keep the Company fully informed at all times of progress on projects on which the Consultant is engaged from time to time. 

  

	5.	Commitment 

  

	5.1	The Consultant shall provide such Services as the Company may require but the Consultant shall provide no more than 1 day of Services per month or such other hours as the Company
shall from time to time request. All such Services must be agreed in advance with the Company. 

  

	5.2	If the Consultant shall be prevented by illness or injury from performing the Services the Consultant shall report this fact as soon as possible and, if practicable, by 10.00 am BST
or GMT, as the case may be, on the first day of incapacity to the Company and, in the case of an absence of uncertain duration, shall keep the Company informed of the reason for its continued absence and of its expected duration. If the absence
through illness or injury continues for more than 7 consecutive calendar days the Consultant shall provide the Company with a doctor’s certificate for each week of its continued absence. 

  

	6.	Fee 

  

	6.1	The Company shall pay to the Consultant in consideration of the provision of the Services a fee of $750 per day (or such other amount as may be agreed in writing for other specific
project work) together with expenses (other than those incurred in respect of all payments made by the Consultant for its overhead expenses) approved in advance by the Company and reasonably and properly incurred by the Consultant in the provision
of the Services subject to the production to the Company of such vouchers or other evidence of actual payment of the expenses as the Company may reasonably require, and to be payable in arrears in accordance with sub-clause 6.2.

  

	6.2	The Consultant shall render monthly invoices to the Company in respect of the fees and expenses payable in accordance with sub-clause 6.1 by the 10th day of each month. All invoices
should provide details of the hours and dates to which it relates. The amounts so invoiced shall be payable by the Company within 30 days of the date of invoice and the Company shall not account to the Consultant for any fees or expenses save on
receipt of such invoices. All fees shall be payable to the Consultant without deductions of any kind. 

  

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	6.3	Without prejudice to the generality of the provisions of this clause the Company shall make no payment to the Consultant unless the invoice submitted by the Consultant provides full
details of the Services provided or work undertaken by the Consultant and is satisfied that the Services provided or work undertaken have been properly performed. 

  

	6.4	Subject to approval by the Board of Directors and subject to the Rules of the Cambridge Display Technology, Inc 2004 Stock Incentive Plan (the Plan), any awards granted to the
Consultant under the Plan will continue to vest whilst this Agreement remains in force. To the extent that any such awards are not fully vested on the Termination Date of this Agreement, such awards will be forfeit in their entirety on the
Termination Date. 

  

	7.	Termination of appointment 

 Notwithstanding any
other provision of this Agreement, should the Consultant: 
  

	 	(a)	at any time be unable to provide its services under this Agreement for a period or periods aggregating at least 3 days in any period of 12 consecutive calendar months;

  

	 	(b)	fail or neglect efficiently and diligently to comply with the terms of this Agreement or be guilty of any material or persistent breach or non-observance of any of the provisions of
this Agreement; 

  

	 	(c)	be guilty of any other conduct calculated or likely to affect prejudicially the interests of any Group Companies; or 

  

	 	(d)	become insolvent, dissolved or subject to a winding up petition 

 then the Company may by written notice to the Consultant immediately terminate this Agreement, provided that any such termination shall be without prejudice to any other rights or remedies of the Company. 
  

	8.	Restrictions 

  

	8.1	The Consultant shall not, nor shall it induce any third party to, during or for a period of 6 months after termination of this Agreement in any capacity: 

 

	 	(a)	 without the prior written consent of the Company, seek, canvass, solicit or deal with, or attempt to do so, the business or custom of any person who was a customer
or client or 

  

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prospective customer or client of the Company at any time during the 12 months prior to the termination of this Agreement and with whom the Consultant has
had dealings; 

  

	 	(b)	without the prior written consent of the Company, seek, canvass, solicit or deal with, or attempt to do so, the business or custom of any person who, at any time during the 12
months prior to the termination of this Agreement, was a competitor or display licensee of the Company or was a party to a collaboration agreement or joint development agreement with the Company; and, 

  

	 	(c)	entice or try to entice away from any Group Companies or any person who at any time within the 12 months prior to termination was a director, officer, consultant or employee of any
Group Companies engaged in skilled or managerial work and with whom the Consultant dealt with during the currency of this Agreement; 

  

	8.2	The Consultant shall not (and shall ensure that any person or persons which he may have consulted or engaged to assist in the provision of Services under this Agreement
(“Engaged Person(s)”) does not) during the term of this Agreement, or at any time after its termination, in any capacity directly or indirectly, disclose to any person or make use of any Confidential Information other than for
providing the Services, which has not entered into the public domain (which, for the avoidance of doubt, shall not include any such Confidential Information which has entered into the public domain as a result of the negligence or deliberate actions
of the Consultant any Engaged Person(s)). 

  

	9.	Acknowledgment by the Consultant 

  

	9.1	The Consultant acknowledges that: 

  

	 	(a)	each Group Company possesses a valuable body of Confidential Information; 

  

	 	(b)	the Company will give it access to Confidential Information in order that it may carry out the duties of its appointment; 

  

	 	(c)	the duties of its appointment include, without limitation, a duty of trust and confidence and a duty to act at all times in the best interests of the Company; and

  

	 	(d)	the disclosure of any Confidential Information to any customer or actual or potential competitor of any Group Company would place such company at a serious competitive disadvantage
and would cause immeasurable (financial and other) damage to the Businesses. 

  

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	10.	Company Property 

  

	10.1	The Consultant will have access to Company property and Confidential Information to assist in the performance of the Services under this Agreement. The Consultant must return to the
Company immediately on termination of this Agreement or on the Company’s request, if earlier, any Company property together with any Confidential Information which is in the Consultant’s possession or control in any format (whether
prepared by the Consultant or any other person and whether stored electronically on paper on audio or audio visual tape or otherwise). The Consultant must not retain any copy or extract of such information in any format. 

  

	11.	Intellectual Property 

  

	11.1	All intellectual property rights (including without limitation rights in inventions, patents, registered designs, unregistered designs, copyright, technical information or know how
or similar rights as well as the right to apply for registered protection for any such rights) arising in the course of or as a consequence of the Services carried out by the Consultant or any person or persons appointed by it shall belong to the
Company. To the extent these do not automatically vest in the Company, the Consultant shall hold them on trust for the Company and will sign such documents as are necessary to vest them in the Company. The Company owns (i) all concepts, works,
inventions, information, software, and other materials developed by Consultant either alone or with others, that result from or relate to any work performed under this Agreement (collectively, “Work Product”) and (ii) all marks, trade
secrets, copyrights, patents, and other intellectual property rights (“Proprietary Rights”) in such Work Product. Work Product does not include any inventions or developments made by Contractor prior to the Effective Date.

  

	11.2	The Consultant shall immediately communicate to the Company full details of any Work Product, inventions or discoveries and any designs or other matters made, devised or discovered
by the Consultant during the course of this Agreement whether alone or with others, and shall not disclose them (or any proposals the Company communicates to the Consultant) to any third party without the Company’s prior written consent. The
Company shall own all documents, drawings, models, samples, prototypes and the like prepared by the Consultant or any person appointed on its behalf and which relate to such rights. 

  

	11.3	The Consultant hereby assigns (in so far as title does not automatically vest in the Company) to the Company by way of future assignment all copyright, designs and other proprietary
rights arising in any Work Product, works or material produced by the Consultant or any person appointed by it throughout the term of this Agreement and waive all moral rights arising from any such works or material. 

  

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	12.	Conflict of interest 

  

	12.1	The Consultant agrees that during the currency of this Agreement, it shall not without the Company’s prior written consent act in any capacity for any person which:

  

	 	(a)	is or shall be in competition with any of the Businesses; 

  

	 	(b)	impairs or might reasonably be thought by the Company to impair its ability to act at all times in the best interests of the Company; or 

  

	 	(c)	requires or might reasonably be thought by the Company to require it to disclose any Confidential Information in order properly to discharge its duties to or to further its interest
in such person, firm or company. 

  

	13.	Nature of Consultancy 

  

	13.1	Nothing in this Agreement shall render the Consultant or any person appointed by it an employee, agent or partner of the Company and the Consultant shall not hold itself out as
such. The Company shall not be liable for any of the acts or omissions of the Consultant. The Consultant shall not pledge the credit of the Company nor sign any document, enter into any agreement or make any undertaking on behalf of the Company.
Consultant shall be and act as an independent contractor (and not as the employee, agent, or representative of Company) in the performance of services for Company. Since Consultant will not be an employee of Company, Consultant will not be entitled
to any of the benefits that Company may make available to its employees, such as vacation pay, sick leave, insurance programs, including group health insurance or retirement benefits. In addition, Consultant acknowledges that as an independent
contractor, he/she is not eligible to recover worker’s compensation benefits in the event of injury. 

  

	13.2	Consultant will be solely responsible for and will file, on a timely basis, all tax returns and payments required to be filed with or made to any federal, state or local tax
authority with respect to Consultant’s performance of the Services and receipt of fees under this Agreement. Consultant will be solely responsible for and must maintain adequate records of expenses incurred in the course of performing the
Services under this Agreement. No part of Consultant’s compensation will be subject to withholding by the Company for the payment of any social security, federal, state or any other employee payroll taxes. 

  

	13.3	Subject to the restrictions and other obligations of the Consultant contained in this Agreement, nothing in this Agreement shall prevent the Consultant from engaging in other
consultancy activities or in part-time employment. 

  

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	14.	General 

  

	14.1	Entire agreement and conflicts 

 This
Agreement sets out the entire agreement and understanding between the parties in respect of the subject matter of this Agreement. 
  

	14.2	Assignment 

 This Agreement shall be binding
upon and endure for the benefit of the successors in title of the parties but shall not be assignable by any party without the prior written consent of the other provided however, that the Company may assign this ‘Agreement’ to any
purchaser of all or substantially all of its business. 
  

	14.3	Variation 

 No purported variation of this
Agreement shall be effective unless it is in writing and signed by or on behalf of each of the parties. 
  

	14.4	Invalidity 

 To the extent that any provision
of this Agreement is found by any court or competent authority to be invalid, unlawful or unenforceable in any jurisdiction, that provision shall be deemed not to be a part of this Agreement, it shall not affect the enforceability of the remainder
of this Agreement nor shall it affect the validity, lawfulness or enforceability of that provision in any other jurisdiction. 
  

	14.5	Accrued Rights 

 The expiration or
termination of this Agreement however arising shall not operate to affect such of the provisions of this Agreement as are expressed to operate or have effect after then and shall be without prejudice to any accrued rights or remedies of the parties.

  

	14.6	Indemnity 

  

	 	(a)	The Consultant will indemnify the Company from and against all actions, claims, costs, proceedings, expenses, loss or damage (including, without limitation, legal costs)which may
arise directly or indirectly from the unauthorised disclosure or use of the Confidential Information by the Consultant or from any other breach of the terms of this Agreement. 

  

	 	(b)	The Consultant shall at all times and at its expense procure and maintain appropriate insurance cover, including public liability, professional and other indemnity and property
insurance fully protecting the Company against all or any loss or damage which may arise in connection with the provision of the Services. 

  

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	 	(c)	The Consultant shall furnish or cause to be furnished to the Company satisfactory evidence of all insurance maintained by the Consultant pursuant to the provisions of sub-clauses
(a) and (b), which insurance policy shall be provided to the satisfaction of the Company and placed with insurance companies of good repute. 

  

	14.7	Releases and waivers 

  

	 	(a)	The rights, powers and remedies conferred on any party by this Agreement and remedies available to any party are cumulative and are additional to any right, power or remedy which it
may have under general law or otherwise. 

  

	 	(b)	Any party may, in whole or in part, release, compound, compromise, waive or postpone, in its absolute discretion, any liability owed to it or right granted to it in this Agreement
by any other party or parties without in any way prejudicing or affecting its rights in respect of that or any other liability or right not so released, compounded, compromised, waived or postponed. 

  

	 	(c)	No single or partial exercise, or failure or delay in exercising any right, power or remedy by any party shall constitute a waiver by that party of, or impair or preclude any
further exercise of, that or any right, power or remedy arising under this Agreement or otherwise. 

  

	15.	Notices 

  

	15.1	Any notice to a party under this Agreement shall be in writing signed by or on behalf of the party giving it and shall, unless delivered to a party personally, be left at, or sent
by prepaid first class post, prepaid recorded delivery or facsimile to the address of the party as set out on page 1 of this Agreement or as otherwise notified in writing from time to time. 

  

	16.	Governing law and jurisdiction 

  

	16.1	This Agreement shall be governed by and construed in accordance with the law of Delaware. 

 This Agreement is effective as of the date appearing at the head of page 1 
  

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	 Signed by Michael Black
	  	) /s/ Michael Black
	 for and on behalf of
	  	)
	 Cambridge Display Technology Inc
	  	)
	 in the presence of:
	  	)

 Signature of witness: /s/ Emma Jones 
 Name: E Jones 
 Address: 2 College Farm Court, Barton, Cambs 
 Occupation: VP, HR 
  

			
	 Signed by Suk-Bae Cha
	  	) /s/ SB Cha
	 in the presence of:
	  	)

 Signature of witness: /s/ Miki Ihara 
 Name: Mike Ihara 
 Address: 5-6-35, Roppongi, Minato-Ku, Tokyo, 106-0032, JPN 
 Occupation: President TRES INC. 
 July 30, 2007 
  

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