Document:

EXHIBIT 10.20

 

AMENDED AND RESTATED CBOE HOLDINGS, INC.

LONG-TERM INCENTIVE PLAN

 

CBOE Holdings, Inc.
has established this Amended and Restated CBOE Holdings, Inc. Long-Term
Incentive Plan to provide an additional inducement for Eligible Individuals to
provide services to the Corporation or an Affiliate as an Employee or
non-employee Director, to reward such Eligible Individuals by providing an
opportunity to acquire incentive awards, and to provide a means through which
the Corporation may attract able persons to enter the employment of or
engagement with the Corporation or one of its Affiliates.  Awards may, in the discretion of the Board or
Committee, and subject to such restrictions as the Board or Committee may determine
or as provided herein, consist of Non-Qualified Stock Options, Restricted
Stock, Restricted Stock Units, or any combination of the foregoing.

 

ARTICLE
1

DEFINITIONS

 

Whenever used in
the Plan, the following terms have the meanings set forth below, and when the
meaning is intended, the initial letter of the word is capitalized:

 

“Affiliate” means a Person that directly, or
indirectly through one or more intermediaries, controls, or is controlled by,
or is under common control with, the Corporation.  For purposes of the preceding sentence, the
word “control” (by itself and as used in the terms “controlling,” “controlled
by” and “under common control with”) means the possession, direct or indirect,
of the power to direct or cause the direction of the management and policies of
a Person, whether through the ownership of voting securities, by contract, or
otherwise.

 

“Award” means a Non-Qualified Stock Option,
Restricted Stock, or Restricted Stock Unit award granted under the Plan.

 

“Award
Agreement” means
an agreement entered into between the Corporation and the applicable
Participant, setting forth the terms and provisions applicable to the Award
then being granted under the Plan, as further described in Section 4.2 of
the Plan.

 

“Award
Date” means, with
respect to any Award, the date of the grant or award specified by the Committee
in a resolution or other writing, duly adopted, and as set forth in the Award
Agreement, provided that such Award Date will not be earlier than the date of
the Committee action.

 

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

 

“Cause” has the meaning set forth in
any employment, consulting, or other written agreement between the Participant
and the Corporation or an Affiliate.  If
there is no employment, consulting, or other written agreement between the Corporation
or an Affiliate and the Participant or if such agreement does not define “Cause,”
then “Cause” will have the meaning specified in the Award Agreement, provided
that if the Award Agreement does not so specify, 

 

 

“Cause”
will mean, as determined by the Committee in its sole discretion and solely
with respect to the Plan and any Award made hereunder, the Participant’s (a) willful
and continued failure to perform his or her material duties with the
Corporation or an Affiliate, or the commission of any activities constituting a
violation or breach under any Federal, state or local law or regulation
applicable to the activities of the Corporation or an Affiliate, (b) fraud,
breach of fiduciary duty, dishonesty, misappropriation or other action that causes
damage to the property or business of the Corporation or an Affiliate, (c) repeated
absences from work such that the Participant is unable to perform his or her
employment or other duties in all material respects, other than due to becoming
Disabled, (d) admission or conviction of, or plea of nolo contendere to, any felony, or any
other crime that, in the reasonable judgment of the Board or Committee,
adversely affects the Corporation’s or an Affiliate’s reputation or the
Participant’s ability to carry out the obligations of his or her employment or
Service, (e) loss of any license or registration that is necessary for the
Participant to perform his or her duties for the Corporation or an Affiliate, (f) failure
to cooperate with the Corporation or an Affiliate in any internal investigation
or administrative, regulatory or judicial proceeding or, (g) act or
omission in violation or disregard of the Corporation’s or an Affiliate’s
policies, including but not limited to the Corporation’s or an Affiliate’s harassment
and discrimination policies and standards of conduct then in effect, in such a
manner as to cause loss, damage or injury to the property, reputation or
employees of the Corporation or an Affiliate. 
In addition, the Participant’s Service will be deemed to have terminated
for Cause if, after the Participant’s Service has terminated, facts and
circumstances are discovered that would have justified a termination for
Cause.  Any act, or failure to act, based
upon authority given pursuant to a resolution duly adopted by the Board or
based upon the advice of counsel for the Corporation or an Affiliate will be
conclusively presumed to be done, or omitted to be done, in good faith and in
the best interests of the Corporation or an Affiliate.

 

“Change
in Control” means
the first to occur of the following:

 

(a)                                 The acquisition by any Person of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under
the Exchange Act) of voting securities of the Corporation where such
acquisition causes such Person to own 35% or more of the combined voting power
of the then outstanding voting securities of the Corporation entitled to vote
generally in the election of directors (the “Outstanding Voting Securities”);
provided that for purposes of this paragraph (a), the following acquisitions
will not be deemed to result in a Change in Control: (i) any acquisition
directly from the Corporation, (ii) any acquisition by the Corporation, (iii) any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Corporation or any Affiliate of the Corporation or (iv) any
acquisition by any corporation or entity pursuant to a transaction that
complies with clauses (A), (B) and (C) of paragraph (c) of this
definition below; and provided further that if any Person’s beneficial
ownership of the Outstanding Voting Securities reaches or exceeds 50% as a
result of a transaction described in clause (i) or (ii) above, and
such Person subsequently acquires beneficial ownership of additional voting
securities of the Corporation, such subsequent acquisition will be treated as
an acquisition that causes such Person to own 35% or more of the Outstanding
Voting Securities;

 

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(b)                                 Individuals who, as of the Effective
Date, constitute the Board (the “Incumbent Board”) cease for any reason to
constitute at least a majority of the Board, provided that any individual
becoming a director subsequent to the date hereof whose election, or nomination
for election by the Corporation’s stockholders, was approved by a vote of at
least a majority of the directors then comprising the Incumbent Board will be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board;

 

(c)                                  The approval by the stockholders of the
Corporation and consummation of (i) a reorganization, merger or
consolidation, or sale or other disposition of all or substantially all of the
assets of the Corporation or (ii) the acquisition of assets or stock of
another corporation in exchange for voting securities of the Corporation (each
of (i) and (ii), a “Business Combination”); excluding, however, such a
Business Combination pursuant to which (A) all or substantially all of the
individuals and entities who were the beneficial owners of the Outstanding
Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 50% of, respectively, the
then-outstanding shares of common stock and the combined voting power of the
then-outstanding voting securities entitled to vote generally in the election
of directors, as the case may be, of the corporation resulting from such
Business Combination (including, without limitation, a corporation that as a
result of such transaction owns the Corporation or all or substantially all of
the Corporation’s assets either directly or through one or more subsidiaries)
in substantially the same proportions as their ownership, immediately prior to
such Business Combination of the Outstanding Voting Securities, (B) no
Person (excluding any employee benefit plan (or related trust) of the
Corporation or such corporation resulting from such Business Combination)
beneficially owns, directly or indirectly (except to the extent that such
ownership existed prior to the Business Combination), an amount of,
respectively, the then-outstanding shares of common stock of the corporation
resulting from such Business Combination or the combined voting power of the
then outstanding voting securities of such corporation representing 20%
thereof; and (C) at least a majority of the members of the board of
directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Board, providing for such Business
Combination; or

 

(d)                                 Approval by the stockholders of the
Corporation of a complete liquidation or dissolution of the Corporation.

 

Notwithstanding the
foregoing, (i) unless a majority of the Incumbent Board determines
otherwise, no Change in Control will be deemed to have occurred with respect to
a particular Participant if the Change in Control results from actions or
events in which such Participant is a 

 

3

 

participant in a capacity
other than solely as an Officer, Employee or Director of the Corporation, and (ii) a
Public Offering will not constitute a Change in Control.

 

“Code” means the Internal Revenue Code of 1986,
as amended.  A reference to any provision
of the Code will include reference to any successor provision of the Code.

 

“Committee” means the Compensation Committee of the
Board, if any, or such similar or successor committee appointed by the
Board.  If the Board has not appointed a
Committee, the Board will function in place of the Committee.

 

“Corporation” means CBOE Holdings, Inc. or any
successor corporation thereto.

 

“Director” means any individual who is a member of
the Board on or after the Effective Date.

 

“Disabled” means the Participant:

 

(a)                                 becomes unable
to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in
death or that has lasted or can be expected to last for a continuous period of
not less than 12 months; or

 

(b)                                 by reason of
any medically determinable physical or mental impairment that can be expected
to result in death or can be expected to last for a continuous period of not
less than 12 months, receives income replacement benefits for a period of not
less than three months under an accident and health plan of the Corporation or
an Affiliate, as applicable.

 

“Dividend
Equivalent Right”
means a right to receive, with respect to any dividends or other distributions
on a share of Stock underlying a Restricted Stock Unit, dividend equivalents on
the share of Stock, as though such share of Stock had been issued and
outstanding, fully vested, and held by the Participant on the record date of
payment of such dividends.  Subject to Section 7.4,
Dividend Equivalent Rights may be provided in connection with an Award of
Restricted Stock Units under the Plan, but not in connection with an Award of
Restricted Stock or Options.

 

“Effective
Date” has the meaning set forth in Section 10.3 of the Plan.

 

“Eligible
Individual” means
any Employee or non-employee Director.

 

“Employee” means any person treated as a common law
employee in the records of the Corporation or one of its Affiliates.  The Corporation shall determine in good faith
and in the exercise of its discretion whether an individual has become or has
ceased to be an Employee and the effective date of such individual’s employment
or termination of employment, as the case may be.  For purposes of an individual’s rights, if
any, under the terms of the Plan as of the time of the Corporation’s
determination of whether or not the individual is an Employee, all such
determinations by the Corporation shall be final, binding and conclusive as to
such rights, if any, notwithstanding that the Corporation or any court of law
or governmental agency subsequently makes a contrary determination as to such
individual’s status as an Employee.

 

4

 

“Exchange
Act” means the
Securities Exchange Act of 1934, as amended. 
A reference to any provision of the Exchange Act will include reference
to any successor provision of the Exchange Act.

 

“Exercise
Price” means the
purchase price at which an Option may be exercised, subject to the provisions
of Article 5.

 

“Fair
Market Value”
means, as of any date:

 

(a)                                 if the Stock is readily tradeable on a
national or regional securities exchange or market system, or is quoted on the
Over the Counter Bulletin Board (OTCBB), the Fair Market Value of a share of
Stock will be the sales price at close of the Stock on the Award Date, time of
exercise, or other date of calculation (or on the last preceding trading date
if Stock was not traded on such date) as quoted on such national or regional
securities exchange or market system or the OTCBB (whichever constitutes the
primary market for the Stock), as reported by the Consolidated Tape
Association, the OTCBB or such other source as the Committee deems reliable;

 

(b)                                 if the Stock is not readily tradeable on
a national or regional securities exchange or market system and is not quoted
on the OTCBB, the fair market value as determined in good faith by the Board or
the Committee, by the reasonable application of a reasonable valuation method
in accordance with Section 409A and Treasury Regulation Section 1.409A-1(b)(5)(iv)(B) (or
any similar or successor provision), thereunder, as the Board or the Committee
will in its discretion select and apply at the time of the Award Date, time of
exercise, or other date of calculation; or

 

(c)                                  if Stock is issued on or
before the date of the initial Public Offering, including at any time prior to
the time at which the initial Public Offering is closed, the fair market value will be the price of the Corporation’s
stock to public in the initial Public Offering of the Corporation.

 

“Insider” means an Officer, Director, or other
person whose transactions in Stock are subject to Section 16 of the
Exchange Act.

 

“Insider Trading Policy” means the written policy of the
Corporation pertaining to the purchase, sale, transfer or other disposition of
the Corporation’s equity securities by Directors, Officers, Employees or other
service providers who may possess material, nonpublic information regarding the
Corporation or its securities.

 

“Non-Qualified
Stock Option”
means an Option that is not intended to (as set forth in the Award Agreement)
or that does not qualify as an “incentive stock option” within the meaning of
Code Section 422.

 

“Officer” means any person designated by the Board
as an officer of the Corporation.

 

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“Option” means an option to purchase Stock at an
Exercise Price determined on the Award Date, subject to the applicable
provisions of Article 5, awarded in accordance with the terms and
conditions of the Plan.

 

“Participant” means an Eligible Individual to whom the
Committee has made one or more Awards under the Plan in accordance with Section 4.1
of the Plan.

 

“Performance
Goals” will mean
performance goals established by the Committee prior to the grant of an Award
and based on the attainment of one or any combination of the following, in each
case of the Corporation, an Affiliate, or business unit by or within which the
Participant is primarily employed or a combination thereof, and that are
intended to qualify under Section 162(m): (a) net earnings; (b) operating
earnings or income; (c) earnings growth; (d) net income; (e) net
income per share; (f) gross revenue or revenue by pre-defined business
segment; (g) revenue backlog; (h) pre- or post-tax profit margins; (i) cash
flow, including operating cash flow, free cash flow, discounted cash flow
return on investment, and cash flow in excess of cost of capital; (j) earnings
per share; (k) return on stockholders’ equity; (l) stock price; (m) return
on common stockholders’ equity; (n) return on capital; (o) return on
assets; (p) economic value added (income in excess of cost of capital); (q) customer
satisfaction; (r) cost control or expense reduction; (s) ratio of
operating expenses to operating revenues; (t) market share; (u) volume;
and (v) revenue per contract, in each case, absolute or relative to
peer-group comparative.

 

The Committee also may
benchmark Performance Goals under one or more of the measures described above
relative to the performance of other corporations.  The Committee will set such Performance Goals
within the time prescribed by Section 162(m).  The Committee will have the discretion to
adjust targets set for pre-established performance objectives as it deems appropriate
to reflect the inclusion or exclusion of the impact of extraordinary or unusual
items, events or circumstances in accordance with Section 162(m).  If the Committee determines it is advisable
to grant Awards that will not qualify for the performance-based exception of Section 162(m),
the Committee may grant Awards that do not so qualify.

 

“Performance
Period” means a period of one or more years, as determined by the Committee.

 

“Person”
means a “person”
as such term is used in Sections 13(d) and 14(d)(2) of the Exchange
Act.

 

“Plan” means the CBOE Holdings, Inc.
Long-Term Incentive Plan, as set forth herein, as the same may be amended,
administered or interpreted from time to time.

 

“Public
Offering” means
any sale of any class of the Corporation’s equity securities pursuant to an
effective registration statement under Section 12 of the Exchange Act
filed with the SEC on Form S-1 (or any successor form adopted by the SEC),
provided that the following will not be considered a public offering: (a) any
issuance of common equity securities by the Corporation as consideration for a
merger or acquisition, (b) any issuance of common securities to employees,
directors or consultants of any of the Corporation or any of its Affiliates as
part of an incentive or compensation plan, (c) any issuance of common
equity securities as part of a unit with debt or preferred stock or any similar
structure in which the common equity securities are being offered primarily as
a means of enhancing the Corporation’s ability to sell the debt or preferred
stock and 

 

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(d) the
issuance of Stock by the Corporation upon conversion of any preferred stock of
the Corporation.

 

“Restricted
Stock” means an
award of shares of Stock delivered under the Plan subject to the requirements
of Article 6 and such other restrictions as the Committee deems
appropriate or desirable.  The
restrictions on, and risk of forfeiture of, Restricted Stock generally will
expire on a specified date, upon the occurrence of an event or achievement of
Performance Goals, or on an accelerated basis under certain circumstances
specified in the Plan or the Award Agreement.

 

“Restricted
Stock Unit” means
a notional account established pursuant to an Award granted to a Participant,
as described in Article 7, that is (a) valued solely by reference to
shares of Stock, (b) subject to restrictions specified in the Award
Agreement, and (c) payable in Stock or cash, in the Committee’s sole
discretion.  The restrictions on, and risk
of forfeiture of, Restricted Stock Units generally will expire on a specified
date, upon the occurrence of an event or achievement of Performance Goals, or
on an accelerated basis under certain circumstances specified in the Plan or
the Award Agreement.

 

“Rule 16b-3” means Rule 16b-3 under the Exchange
Act, as amended, and any guidance issued thereunder by the SEC.

 

“Sarbanes-Oxley
Act” means the
Sarbanes-Oxley Act of 2002.  A reference
to any provision of the Sarbanes-Oxley Act will include reference to any
successor provision of the Sarbanes-Oxley Act.

 

“SEC” means the United States Securities and
Exchange Commission.

 

“Section 162(m)” means Code Section 162(m), as
amended, and any proposed and final regulations and other guidance issued
thereunder by the U.S. Department of Treasury and/or the Internal Revenue
Service.

 

“Section 409A” means Code Section 409A, as
amended, and any proposed and final regulations and other guidance issued
thereunder by the U.S. Department of Treasury and/or the Internal Revenue
Service.

 

“Securities
Act” means the
Securities Act of 1933, as amended.  A
reference to any provision of the Securities Act will include reference to any
successor provision of the Securities Act.

 

“Service”
means the
provision of personal services to the Corporation or its Affiliates in the
capacity of (a) an Employee, (b) a Director, or (c) a
consultant.  A Participant’s Service
shall not be deemed to have terminated merely because of a change in the
capacity in which the Participant renders Service to the Corporation or its
Affiliates, a transfer of the Participant among the Corporation and its
Affiliates,  or a change in the Corporation or
Affiliate for which the Participant renders such Service, provided in each case
that there is no interruption or termination of the Participant’s Service.  Additionally, a Participant’s Service shall
not be deemed to have terminated if the Participant takes any military leave,
sick leave, or other bona fide leave of absence approved by the Corporation,
provided that if any such leave taken by a Participant exceeds 90 days, then on
the 91st day immediately following such 90-day period, the Participant’s
Service shall be deemed to have terminated, unless the Participant’s right to
return to 

 

7

 

Service is
guaranteed by statute or contract. 
Notwithstanding the foregoing, unless otherwise designated by the
Corporation, a leave of absence authorized by the Corporation shall be treated
as Service for purposes of determining vesting under the Award Agreement.  A Participant’s Service shall be deemed to
have terminated either upon an actual termination of Service or upon the time
that the entity for which the Participant performs Service ceases to be an
Affiliate of the Corporation.  Subject to
the foregoing, the Corporation, in its discretion, shall determine whether the
Participant’s Service has terminated and the effective date of and reason for
such termination.

 

“Stock” means the “Unrestricted Common Stock” of
the Corporation (as defined in Article Fourth (a)(i) of the Amended
and Restated Certificate of Incorporation of the Corporation).

 

“Voting Stock” means the outstanding capital stock of
the Corporation entitled to vote for the election of Directors.

 

ARTICLE
2

PLAN
ADMINISTRATION

 

Section 2.1                                   Administration. 
The Committee will administer the Plan. 
The Committee will interpret the Plan and any Award Agreement or other
form of agreement or other document used by the Corporation in the
administration of the Plan or of any Award, and prescribe such rules,
regulations, and procedures in connection with the operation of the Plan, as it
deems to be necessary and advisable for the administration of the Plan
consistent with the purposes of the Plan. 
Without limiting the foregoing, the Committee will have the authority
and complete discretion to:

 

(a)                                 Prescribe, amend, and rescind rules and
regulations relating to the Plan and any Awards;

 

(b)                                 Select Eligible Individuals (including
members of the Committee) to receive Awards, as provided in Section 4.1 of
the Plan;

 

(c)                                  Determine the form and terms of Awards;

 

(d)                                 Determine the number of shares of Stock
or other consideration subject to Awards, as provided in Articles 5 through 9
of the Plan;

 

(e)                                  Determine whether Awards will be granted
singly, in combination or in tandem with, in replacement of, or as alternatives
to, other Awards under the Plan or grants or awards under any other incentive
or compensation plan of the Corporation;

 

(f)                                   Construe and interpret the Plan, any
Award Agreement in connection with an Award and any other agreement or document
executed pursuant to the Plan;

 

(g)                                  Correct any defect or omission, or
reconcile any inconsistency in the Plan, any Award or any Award Agreement;

 

(h)                                 Accelerate or, with the consent of the
Participant, defer the vesting of any Award or the exercise date of any Award,
subject to the limitations of Section 409A;

 

8

 

(i)                                     Authorize any person to execute on behalf
of the Corporation any instrument required to effectuate the grant of an Award
and delegate to Officers of the Corporation the authority to perform
administrative functions under the Plan subject to any legal requirements that
the Committee as a whole take action with respect to such function, other than
any such delegation that would cause Awards or other transactions under the
Plan to cease to (i) be exempt from Section 16(b) of the
Exchange Act, (ii) satisfy the independent director requirements of the
applicable national or regional securities exchange or market system, or (iii) qualify
as “performance-based compensation” under Section 162(m);

 

(j)                                    To the extent permissible under Section 141(c) and
Section 157(c) of the Delaware General Corporation Law and other
applicable laws, regulations and stock exchange rules, the Board and the
Committee may each, in their discretion, delegate to another committee or one
or more officers of the Corporation, any or all of the authority and
responsibility of the Committee with respect to awards to Employees who are not
subject to Section 16 of the Exchange Act at the time any such delegated
authority or responsibility is exercised. 
To the extent that the Board or the Committee has delegated to such
other committee or to one or more officers of the Corporation, the authority
and responsibility of the Committee pursuant to the foregoing, all references
to the Committee in the Plan shall be deemed to refer to such other committee
or to such officer or officers;

 

(k)                                 Amend, modify, extend, cancel or renew
any Award, and authorize the exchange, substitution, or replacement of Awards,
provided that (i) no such amendment, modification, extension,
cancellation, renewal, exchange, substitution, or replacement will be to the
detriment of a Participant with respect to any Award previously granted without
the affected Participant’s written consent, (ii) any such amendment,
modification, extension, cancellation, renewal, exchange, substitution or
replacement must satisfy the requirements for exemption under Section 409A,
and (iii) in no event will the Committee be permitted to reduce the
Exercise Price of any outstanding Option or to exchange or replace an
outstanding Option with a new Option with a lower Exercise Price, except
pursuant to Section 5.2;

 

(l)                                     Determine whether a Participant has
engaged in the operation or management of a business that is in competition
with the Corporation or any of its Affiliates, or whether a Participant has
violated the restrictive covenants referred to in Section 10.12; and

 

(m)                             Make all other determinations deemed
necessary or advisable for the administration of the Plan.

 

The Committee will keep
records of action taken at its meetings. 
A majority of the Committee will constitute a quorum at any meeting, and
the acts of a majority of the members present at any meeting at which a quorum
is present, or acts approved in writing by a majority of the Committee, will be
the acts of the Committee.

 

9

 

Section 2.2                                   Administration with Respect
to Insiders.  With respect to Eligible Individuals who are
Insiders, at any time that any class of equity security of the Corporation is
registered under Section 12 of the Exchange Act, the Plan shall be
administered in compliance with the requirements, if any, of Rule 16b-3.

 

Section 2.3                                   Indemnification. 
Each person who is or has been a member of the Committee or the Board,
and any individual or individuals to whom the Committee has delegated authority
under this Article 2, will be indemnified and held harmless in accordance
with the Corporation’s Certificate of Incorporation.

 

ARTICLE
3

AUTHORIZED
SHARES

 

Section 3.1                                   Shares Available Under
the Plan.  Subject to adjustment as set forth in Section 3.2,
the maximum number of shares of Stock that may be issued or delivered and as to
which Awards may be granted under the Plan will be equal to the sum of: (a) 2.67%
of the shares of capital stock of the Corporation outstanding as of the date
and time of the demutualization of the Chicago Board Options Exchange,
Incorporated (on a fully-diluted basis, counting all shares of Stock subject to
Awards under this Plan as outstanding); (b) any shares of Stock subject to
an Award under the Plan that expire without being exercised, or are forfeited,
canceled, settled or otherwise terminated without a distribution of Stock to
the Participant; (c) shares of Stock not delivered to the Participant
because the Award is exercised through a reduction of shares subject to the
Award (i.e., “net exercised”); and (d) shares
of Stock delivered (either actually or by attestation) to or withheld by the
Corporation in connection with the exercise of an Option awarded under the
Plan, or in payment of any required income tax withholding for the exercise of
an Option or the vesting of Restricted Stock awarded under the Plan.  The shares that may be issued or delivered
under the Plan may be either authorized but unissued shares, repurchased
shares, or partly each.

 

If any Award granted
under the Plan is canceled by mutual consent or terminates or expires for any
reason without having been exercised in full, or, if and to the extent that an
Award of Restricted Stock Units is paid in cash rather than the issuance of
shares of Stock, the number of shares subject to such Award (or in the case of
Restricted Stock Units, the number of shares of Stock for which payment was
made in cash) will again be available for purposes of the Plan.

 

If, in connection with an
acquisition of another company or all or part of the assets of another company
by the Corporation or an Affiliate, or in connection with a merger or other
combination of another company with the Corporation or an Affiliate, the
Corporation either (i) assumes stock options or other stock incentive
obligations of such other company, or (ii) grants stock options or other
stock incentives in substitution for stock options or other stock incentive
obligations of such other company, then none of the shares of Stock that are
issuable or transferable pursuant to such stock options or other stock incentives
that are assumed or granted in substitution by the Corporation will be charged
against the limitations set forth in this Section 3.1.

 

Section 3.2                                   Adjustment and
Substitution of Shares. 
If a
dividend or other distribution will be declared upon the Stock, payable in
shares of Stock, the number of shares of Stock then subject to any outstanding
Award or by reference to which the amount of any other Award is determined and
the number of shares that may be issued or delivered under the Plan will be 

 

10

 

adjusted by adding
thereto the number of shares that would have been distributable thereon if such
shares had been outstanding on the date fixed for determining the stockholders
entitled to receive such dividend or distribution.

 

If the outstanding shares
of Stock will be changed into or exchangeable for a different number or kind of
shares of Stock or other securities of the Corporation or another corporation,
whether through reorganization, reclassification, recapitalization, stock
split-up, combination of shares, merger or consolidation, then the Committee
will substitute for each share of Stock subject to any then-outstanding Award
and for each share of Stock, which may be issued or delivered under the Plan
but is not then subject to an outstanding Award, the number and kind of shares
of Stock or other securities into which each outstanding share of Stock is so
changed or for which each such share is exchangeable, provided that in the
event of a merger, acquisition or other business combination of the Corporation
with or into another entity, any adjustment provided for in the applicable
agreement and plan of merger (or similar document) will be conclusively deemed
to be appropriate for purposes of this Section 3.2.

 

In the case of any
adjustment or substitution as provided for in this Section 3.2, the
aggregate Exercise Price for all shares subject to each then-outstanding Option
prior to such adjustment or substitution will be the aggregate Exercise Price
for all shares of Stock or other securities (including any fraction) to which
such shares will have been adjusted or which will have been substituted for
such shares.  Any new Exercise Price per
share will be carried to at least three decimal places with the last decimal
place rounded upwards.

 

No adjustment or
substitution provided for in this Section 3.2 will require the Corporation
to issue or sell a fraction of a share or other security.  Accordingly, all fractional shares or other
securities that result from any such adjustment or substitution will be
eliminated and not carried forward to any subsequent adjustment or
substitution.

 

If any adjustment or
substitution would cause a modification, extension or renewal of an Option
within the meaning of Section 409A, the Committee may elect that such
adjustment or substitution not be made but rather will use reasonable efforts
to effect such other adjustment of each then-outstanding Option as the
Committee in its sole discretion will deem equitable and that will not result
in any such modification, extension or renewal under Section 409A.

 

ARTICLE
4

ELIGIBILITY
AND AWARDS

 

Section 4.1                                   Eligibility.  Subject to the provisions of the Plan, the Committee
will have full and final authority, in its discretion, to grant Awards as
described herein and to determine the Eligible Individuals to whom Awards will
be granted.

 

Section 4.2                                   Award Agreement.  Each Award granted under the Plan will be evidenced by
a written or electronic Award Agreement, in a form approved by the Committee.  Such Award Agreement will be subject to and
incorporate the express terms and conditions, if any, required under the Plan
or as required by the Committee for the form of Award granted and such other
terms and conditions as the Committee may specify, and will be executed by the
Chief Executive Officer, the President (if other than the Chief Executive
Officer), or any person designated as an executive Officer by the Board for Section 16
purposes, on behalf of the Corporation, and by the 

 

11

 

Participant to whom such
Award is granted.  The Board may at any
time and from time to time amend an outstanding Award Agreement in a manner
consistent with the Plan.

 

Section 4.3                                   Corporation’s Obligation
to Deliver Stock.  The obligation of the Corporation to issue or
deliver shares of Stock under the Plan will be subject to (a) the
effectiveness of a registration statement under the Securities Act, with
respect to such shares, if deemed necessary or appropriate by counsel for the
Corporation; (b) the condition that the shares will have been listed (or
authorized for listing upon official notice of issuance) upon each stock
exchange on which such shares may then be listed; and (c) all other
applicable laws, regulations, rules and orders that may then be in effect.

 

ARTICLE
5

STOCK
OPTIONS

 

Section 5.1                                   Grant of Stock Options.  The Committee will have authority, in its discretion,
to grant Non-Qualified Stock Options. 
Options granted under the Plan will be subject to the following terms
and conditions of this Article 5.

 

Section 5.2                                   Exercise Price.  Subject to adjustment as set forth in Section 3.2,
the Exercise Price will be such price as the Committee, in its discretion, will
determine and set forth in the Award Agreement, except that, the Exercise Price
will not be less than one hundred percent (100%) of the Fair Market Value per
share of Stock covered by the Option as determined on the Award Date.

 

Section 5.3                                   Payment of Exercise Price.  The Exercise
Price will be payable in full in any one or more of the following ways:

 

(a)                                 in cash, check, bank draft, money order
or wire transfer payable to the Corporation;

 

(b)                                 by delivery to the Corporation (either by
actual delivery or by attestation) of shares of Stock (which are owned by the
Participant free and clear of all liens and other encumbrances and which are
not subject to the restrictions set forth in Article 6) having an
aggregate Fair Market Value on the date of exercise of the Option equal to the
Exercise Price for the shares being purchased;

 

(c)                                  by requesting that the Corporation
withhold such number of shares of Stock then issuable upon exercise of the
Option as will have an aggregate Fair Market Value equal to the Exercise Price
for the shares being acquired upon exercise of the Option (and any applicable
withholding taxes);

 

(d)                                 by a “net exercise” arrangement under
which the Corporation will reduce the number of shares of Stock issued upon
exercise by the largest whole number of shares with a Fair Market Value that
does not exceed the aggregate Exercise Price; provided that the Corporation
shall accept a cash or other payment from the Participant to the extent of any
remaining balance of the aggregate Exercise Price not satisfied by such
reduction in the number of whole shares to be issued; and provided further that
shares of Stock will no longer be outstanding under an Option and will not be
exercisable thereafter to the extent that (i) shares are used

 

12

 

to pay the Exercise Price
pursuant to the “net exercise,” (ii) shares are delivered to the
Participant as a result of such exercise, and (iii) shares are withheld to
satisfy tax withholding obligations;

 

(e)           provided that a public market for the Corporation’s
stock exists, and to the extent permitted by the Sarbanes-Oxley Act:

 

(i)            through a “same day sale” commitment from the
Participant and a broker-dealer that is a member of the Financial Industry
Regulatory Authority (a “FINRA Dealer”) whereby the Participant irrevocably
elects to exercise the Option and to sell a portion of the shares so purchased
to pay the Exercise Price (or a larger number of the shares so purchased), and
whereby the FINRA Dealer irrevocably commits upon receipt of such shares to forward
the Exercise Price directly to the Corporation (and any excess to the
Participant);

 

(ii)           through a “margin” commitment from the Participant and
a FINRA Dealer whereby the Participant irrevocably elects to exercise the
Option and to pledge the shares so purchased to the FINRA Dealer in a margin
account as security for a loan from the FINRA Dealer in the amount of the
Exercise Price, and whereby the FINRA Dealer irrevocably commits upon receipt
of such shares to forward the Exercise Price directly to the Corporation; or

 

(f)            by any combination of the foregoing.

 

If the Exercise Price is
paid in whole or in part in shares of Stock, any portion of the Exercise Price
representing a fraction of a share will be paid in cash.  The date of exercise of an Option will be
determined under procedures established by the Committee, and the Exercise
Price will be payable at such time or times as the Committee, in its
discretion, will determine.  No shares
will be issued or delivered upon exercise of an Option until full payment of
the Exercise Price has been made.  When
full payment of the Exercise Price has been made, the Participant will be
considered for all purposes to be the owner of the shares with respect to which
payment has been made.

 

Section 5.4            Exercisability,
Expiration, and Term of Options.  Subject to this Section 5.4 and Section 2.1,
Options may be exercised at such times, in such amounts and subject to such
restrictions as will be determined by the Committee, in its discretion.  An Option may be exercised (a) at such
time as the Option vests, or (b) if and to the extent set forth in the
applicable Award Agreement, prior to the date on which the Option vests,
provided that such Stock obtained will be subject to the same requirements that
are applicable to grants of Restricted Stock set forth in Article 6 and in
the applicable Award Agreement.  After an
Option is granted, the Committee, in its sole discretion, may accelerate the
exercisability of the Option. 
Restrictions and conditions on the exercise of an Option need not be the
same for each Award or for each Participant.

 

13

 

Each Option will
terminate not later than the expiration date specified in the Award Agreement
pertaining to such Option, provided that the expiration date with respect to an
Option shall not be later than the 10th anniversary of its Award Date.

 

Except as otherwise
provided in the Award Agreement, the vesting conditions on an Option will lapse
upon the date that a Participant dies or becomes Disabled.  Except as otherwise provided in the Award
Agreement, a Participant (or his or her beneficiary, as applicable) must
exercise any outstanding Option, if any, within one year following the Participant’s
death or Disability (or by the 10th anniversary of the Option’s Award Date, if
earlier).  If the Participant does not
exercise any outstanding Option within one year from the Participant’s death or
Disability (or by the 10th anniversary of the Option’s Award Date, if earlier),
the outstanding Option will be cancelled and forfeited.

 

Subject to the preceding
paragraph, unless otherwise determined by the Committee and set forth in an
Award Agreement or an amendment thereto, following a Participant’s termination
of Service for any reason other than Cause, such Participant must exercise any
outstanding Option, if at all, within 90 days from the date of termination of
Service (or by the 10th anniversary of the Option’s Award Date, if
earlier).  If the Participant does not
exercise any outstanding Option within 90 days from the date of termination of
Service (or by the 10th anniversary of the Option’s Award Date, if earlier),
the outstanding Option will be cancelled and forfeited.  All Options, including vested Options, will
be cancelled and forfeited immediately upon a Participant’s termination of
Service for Cause.

 

Notwithstanding any
contrary provision of this Section 5.4, if, on the date an outstanding
Option would expire, the exercise of the Option would violate applicable
securities laws, the expiration date applicable to the Option will be extended
to a date that is 30 calendar days after the date the exercise of the Option
would no longer violate applicable securities laws.

 

ARTICLE 6

RESTRICTED STOCK

 

Section 6.1            Award.  Subject to the terms and provisions of the Plan, the
Committee may award, at any time, shares of Restricted Stock to any Eligible
Individual in the number and form, and subject to such restrictions on
transferability and other restrictions as the Committee may determine in its
discretion and set forth in the Award Agreement, including without limitation
the achievement of Performance Goals. 
Restricted Stock also may be received by a Participant as the result of
an exercise of an Option, when such award has not vested.

 

Section 6.2            Vesting and Restrictions
on Transfer.  Shares issued pursuant to any Restricted
Stock Award shall be made subject to vesting conditions based upon the
satisfaction of such Service requirements, conditions, restrictions or
Performance Goals as the Committee shall establish and set forth in the Award
Agreement.  During any period in which
shares acquired under a Restricted Stock Award remain subject to vesting
conditions, such shares may not be sold, exchanged, transferred, pledged,
assigned or otherwise disposed of. 
Except as otherwise provided in the Award Agreement, the vesting
conditions on any shares of Restricted Stock will expire and the restrictions
on shares of Restricted Stock will lapse upon the date that a Participant dies
or becomes Disabled.  Upon request by the
Corporation, each Participant shall execute any agreement evidencing such
transfer restrictions prior to the receipt of shares of Stock 

 

14

 

hereunder and shall
promptly present to the Corporation any and all certificates representing
shares of Stock acquired hereunder for the placement on such certificates of
appropriate legends evidencing any such transfer restrictions.

 

Section 6.3            Termination of Service.  Except as otherwise provided in Section 6.2
above, if a Participant’s termination of Service occurs for any reason before
the expiration of the vesting conditions, all shares of Restricted Stock that
remain subject to vesting conditions will be forfeited by the Participant as of
the Participant’s termination of Service, unless the Committee otherwise
determines.  In the case of Restricted
Stock purchased through the exercise of an Option, the Corporation will refund
the Exercise Price paid on the exercise of the Option.  Such forfeited shares of Restricted Stock
will again become available for award under the Plan.

 

Section 6.4            Voting Rights; Dividends
and Distributions.  Except as provided in this Section 6.4
or the Award Agreement, during any period in which shares acquired pursuant to
a Restricted Stock Award remain subject to vesting conditions, the Participant
shall have all of the rights of a stockholder of the Corporation holding shares
of Stock, including the right to vote such shares and to receive all dividends
and other distributions paid with respect to such shares.  However, in the event of a dividend or
distribution paid in shares of Stock or other property or any other adjustment
made upon a change in the capital structure of the Corporation as described in Section 3.2,
any and all new, substituted or additional securities or other property (other
than normal cash dividends) to which the Participant is entitled by reason of
the Participant’s Restricted Stock Award shall be immediately subject to the
same vesting conditions as the shares subject to the Restricted Stock Award
with respect to which such dividends or distributions were paid or adjustments
were made.

 

ARTICLE
7

RESTRICTED
STOCK UNIT AWARDS

 

Section 7.1            Award.  Subject to the terms and provisions of the Plan, the
Committee may award, at any time, Restricted Stock Units to any Eligible
Individual in the number and form, and subject to such restrictions on
transferability and other restrictions as the Committee may determine in its
discretion and set forth in the Award Agreement, including without limitation
the achievement of Performance Goals.

 

Section 7.2            Purchase Price.  No monetary
payment (other than applicable tax withholding, if any) shall be required as a
condition of receiving a Restricted Stock Unit Award, the consideration for
which shall be services actually rendered to or for the benefit of the
Corporation or an Affiliate.

 

Section 7.3            Vesting.  Restricted
Stock Unit Awards shall be made subject to vesting conditions based upon the
satisfaction of such Service requirements, conditions, restrictions or
Performance Goals as the Committee shall establish and set forth in the Award
Agreement.  Except as otherwise provided
in the Award Agreement, the vesting conditions on any Restricted Stock Unit
Award will expire and the Restricted Stock Unit will become fully vested upon
the date that a Participant dies or becomes Disabled.

 

15

 

Section 7.4            Voting Rights, Dividend
Equivalent Rights and Distributions.  Participants shall have no voting rights with
respect to shares of Stock represented by Restricted Stock Units until the date
of the issuance of such shares (as evidenced by the appropriate entry on the
books of the Corporation or of a duly authorized transfer agent of the
Corporation).

 

The Committee, in its
discretion, may provide in the Award Agreement evidencing any Restricted Stock
Unit Award that the Participant shall be entitled to receive Dividend
Equivalent Rights during the period beginning on the date a Restricted Stock
Unit Award is granted and ending, with respect to each share of Stock
underlying the Award, on the earlier of the date the Award vests or the date on
which it is terminated.  However, in the
event of a dividend or distribution paid in shares of Stock or other property
or any other adjustment made upon a change in the capital structure of the
Corporation as described in Section 3.2, any and all new, substituted or
additional securities or other property (other than normal cash dividend equivalents)
to which the Participant may be entitled by reason of the Participant’s
Restricted Stock Unit Award shall be immediately subject to the terms and
conditions and shall be settled in the same manner and at the same time as the
Restricted Stock Unit Award with respect to which such Dividend Equivalent
Rights were paid or adjustments were made.

 

Section 7.5            Effect of Termination of
Service.  Except as otherwise provided in Section 7.3
above or by the Committee and set forth in the Award Agreement evidencing a
Restricted Stock Unit Award, if a Participant’s Service terminates for any
reason, whether voluntary or involuntary, then the Participant shall forfeit
any Restricted Stock Units that remain subject to vesting conditions as of the
date of the Participant’s termination of Service.

 

Section 7.6            Settlement of Restricted
Stock Unit Awards.  The Corporation shall issue to a Participant
on the date on which Restricted Stock Units subject to the Participant’s
Restricted Stock Unit Award vest or on such other date determined by the
Committee, in its discretion, and set forth in the Award Agreement one share of
Stock (and/or any other new, substituted or additional securities or other
property pursuant to an adjustment described in Section 3.2) for each
Restricted Stock Unit then becoming vested or otherwise to be settled on such
date, subject to the withholding of applicable taxes, if any.  If permitted by the Committee, the
Participant may elect, consistent with the requirements of Section 409A
and in accordance with such procedures as the Committee may specify from time
to time, to defer receipt of all or any portion of the shares of Stock or other
property otherwise issuable to the Participant pursuant to this Section 7.6.  Notwithstanding the foregoing, the Committee,
in its discretion, may provide in any Award Agreement for settlement of any
Restricted Stock Unit Award by payment to the Participant in cash of an amount
equal to the Fair Market Value on the vesting date of the shares of Stock or
other property otherwise issuable to the Participant pursuant to this Section 7.6.  Notwithstanding the foregoing, any stock
issued or cash paid to the Participant in settlement of the Restricted Stock
Units will be issued or paid, as applicable, as soon as administratively
practicable following the applicable vesting date but in no event later than March 15th
of the year following such vesting date (unless such Restricted Stock Unit has
been deferred as permitted by the Committee under this Section 7.6).

 

16

 

ARTICLE 8

CHANGE IN CONTROL

 

Section 8.1            Accelerated Vesting.  The Committee
will have the discretion to provide in applicable Award Agreements that, in the
event of a Change in Control, the following provisions will apply:

 

(a)           each outstanding Option will immediately become vested
and exercisable in full; and

 

(b)           the vesting conditions on each share of Restricted
Stock or Restricted Stock Unit will lapse,

 

provided that full
vesting of all such outstanding Awards will be immediate unless the Corporation
is the surviving entity and any adjustments necessary to preserve the value of
the Participant’s outstanding Awards have been made, or the Corporation’s
successor at the time of the Change in Control irrevocably assumes the
Corporation’s obligations under the Plan or replaces each Participant’s
outstanding Award with an award of equal or greater value and having terms and
conditions no less favorable to the Participant than those applicable to the
Participant’s Award immediately prior to the Change in Control.

 

In the event of a Change
in Control that is a merger or consolidation in which the Corporation is not
the surviving corporation or that results in the acquisition of substantially
all the Corporation’s outstanding Stock by a single person or entity or by a
group of persons or entities acting in concert, or in the event of a sale or
transfer of all or substantially all of the Corporation’s assets (a “Covered
Transaction”), the Committee will have the discretion to provide for the
termination of all outstanding Options as of the effective date of the Covered
Transaction, provided that no Option will be so terminated (without the consent
of the Participant) prior to the expiration of 20 days following the later of (i) the
date on which the Award became fully exercisable and (ii) the date on
which the Participant received written notice of the Covered Transaction.

 

Section 8.2            Excess Parachute Payment.  In the event
that any acceleration of vesting pursuant to an Award and any other payment or
benefit received or to be received by a Participant would subject the
Participant to any excise tax pursuant to Code Section 4999 due to the
characterization of such acceleration of vesting, payment or benefit as an
excess parachute payment under Code Section 280G, the Participant may
elect, in his or her sole discretion, to reduce the amount of any acceleration
of vesting called for under the Award in order to avoid such
characterization.  To aid the Participant
in making any election made under this Section 8.2, no later than the date
of the occurrence of any event that might reasonably be anticipated to result
in an excess parachute payment to the Participant, the Corporation shall
request a determination in writing by independent experts selected by the
Corporation.  As soon as practicable
thereafter, the independent experts shall determine and report to the
Corporation and the Participant the amount of such acceleration of vesting,
payments and benefits that would produce the greatest after-tax benefit to the
Participant.  For the purposes of such
determination, the independent experts may rely on reasonable, good faith
interpretations concerning the application of Code Sections 280G and 4999.  The Corporation and the Participant shall
furnish to the independent experts such information and documents as the
experts may reasonably 

 

17

 

request in order to make
their required determination.  The
Corporation shall bear all fees and expenses the independent experts may
reasonably charge in connection with their services contemplated by this Section 8.2,
and any excise tax, income tax, interest, or penalties imposed on the
Participant as a result of a successful Internal Revenue Service claim that,
contrary to the determination and report of the independent experts, the
Participant must pay an excise tax under Code Section 4999 due to the
characterization of such acceleration of vesting, payment or benefit as an
excess parachute payment under Code Section 280G.

 

ARTICLE
9

CERTIFICATES FOR AWARDS OF STOCK

 

Section 9.1            Stock Certificates.  Except as otherwise provided in this Section 9.1,
each Participant entitled to receive shares of Stock under the Plan will be
issued a certificate for such shares. 
Such certificate will be registered in the name of the Participant and
will bear an appropriate legend reciting the terms, conditions and
restrictions, if any, applicable to the Stock and will be subject to
appropriate stop-transfer orders.  To the
extent that the Plan provides for issuance of stock certificates to reflect the
issuance of shares of Stock, the issuance may be effected on a non-certificated
basis, to the extent not prohibited by applicable law or the applicable rules of
any stock exchange or market system.  If
the issuance of shares under the Plan is effected on a non-certificated basis,
the issuance of shares to a Participant will be reflected by crediting (by
means of a book entry) the applicable number of shares of Stock to an account
maintained by the Corporation in the name of such Participant, which account
may be an account maintained by the Corporation for such Participant under any
dividend reinvestment program offered by the Corporation.  The Committee may require, under such terms
and conditions as it deems appropriate or desirable, that the certificates for
Restricted Stock delivered under the Plan be held in custody by a bank or other
institution, or that the Corporation may itself hold such shares in custody
until the vesting conditions expire or until restrictions thereon otherwise
lapse, and may require, as a condition of any receipt of Restricted Stock, that
the recipient will have delivered a stock power endorsed in blank relating to
the Restricted Stock.  Certificates for
shares of unrestricted Stock may be delivered to the Participant after, and
only after, the vesting conditions will have expired without forfeiture in
respect of such shares of Restricted Stock.

 

Section 9.2            Compliance With Laws and
Regulations.  The grant of Awards and the issuance of
shares of Stock pursuant to an Award shall be subject to compliance with all
applicable requirements of Federal, state, local and foreign law with respect
to such securities and the requirements of any stock exchange or market system
upon which the Stock may then be listed. 
In addition, no Award may be exercised or shares of Stock issued
pursuant to an Award unless (a) a registration statement under the
Securities Act shall at the time of such exercise or issuance be in effect with
respect to the shares issuable pursuant to the Award, or (b) in the
opinion of legal counsel to the Corporation, the shares issuable pursuant to
the Award may be issued in accordance with the terms of an applicable exemption
from the registration requirements of the Securities Act.  The inability of the Corporation to obtain
from any regulatory body having jurisdiction the authority, if any, deemed by
the Corporation’s legal counsel to be necessary to the lawful issuance and sale
of any shares hereunder shall relieve the Corporation of any liability in
respect of the failure to issue or sell such shares as to which such requisite
authority shall not have been obtained. 
As a condition to issuance of any Stock, the Corporation may require the
Participant to satisfy any qualifications that may be necessary or 

 

18

 

appropriate, to evidence
compliance with any applicable law or regulation and to make any representation
or warranty with respect thereto as may be requested by the Corporation.

 

Section 9.3            Restrictions. 
All certificates for shares of Stock delivered under the Plan (and all
non-certificated shares credited to a Participant’s account as provided in Section 9.1)
also will be subject to such stop-transfer orders and other restrictions as the
Committee may deem advisable under the rules, regulations and other
requirements of the SEC, any stock exchange or quotation system upon which the
Stock is then listed and any applicable Federal or state securities laws; and
the Committee may cause a legend or legends to be placed on any such
certificates to make appropriate reference to such restrictions.  The foregoing provisions of this Section 9.3
will not be effective if and to the extent that the shares of Stock delivered
under the Plan are covered by an effective and current registration statement
under the Securities Act, or if and so long as the Committee determines that
application of such provisions is no longer required or desirable.  In making such determination, the Committee
may rely upon an opinion of counsel for the Corporation.

 

Section 9.4            Rights of Stockholders.  Except as otherwise provided herein, no Participant
awarded an Option or Restricted Stock Unit will have any right as a stockholder
with respect to any shares subject to such Award prior to the date of issuance
to him or her of a certificate or certificates for such shares, or if
applicable, the crediting of non-certificated shares to an account maintained
by the Corporation in the name of such Participant.  No adjustment shall be made for dividends,
distributions or other rights for which the record date is prior to the date
such shares are issued, except as provided in Sections 3.2, 6.4, 7.4, or
another provision of the Plan.

 

ARTICLE 10

MISCELLANEOUS

 

Section 10.1         Effect of the Plan on the Rights of
Employees and Employer.  Neither the
adoption of the Plan nor any action of the Board or the Committee pursuant to
the Plan will be deemed to give any Eligible Individual any right to be granted
an Award and nothing in the Plan, in any Award granted under the Plan or in any
Award Agreement will confer any right to any Participant to continue in the
employment of the Corporation or any Affiliate or to continue to be retained to
provide Services to the Corporation or any Affiliate as a Director, or
consultant or interfere in any way with the rights of the Corporation or any
Affiliate to terminate a Participant’s Service at any time.

 

Section 10.2         Amendment.  The Board specifically reserves the right to alter and
amend the Plan at any time and from time to time and the right to revoke or
terminate the Plan or to suspend the granting of Awards pursuant to the Plan;
provided that no such alteration, amendment, revocation, termination, or suspension
will terminate any outstanding Award theretofore granted under the Plan, unless
there is a liquidation or a dissolution of the Corporation; and provided
further that no such alteration or amendment of the Plan will, without prior
stockholder approval (a) increase the total number of shares that may be
issued or delivered under the Plan; (b) make any changes in the class of
Eligible Individuals; (c) extend the period set forth in the Plan during
which Awards may be granted; or (d) make any changes that require
stockholder approval under the rules and regulations of any securities
exchange or market on which the Stock is traded.  No alteration, amendment, revocation or
termination of the Plan or suspension of any Award will 

 

19

 

materially adversely
affect, without the written consent of the holder of an Award theretofore
granted under the Plan, the rights of such holder with respect to such
Award.  The Committee may not amend any
Award to extend the exercise period beyond a date that is later than the
earlier of the latest date upon which the Award could have expired by its
original terms under any circumstances or the 10th anniversary of the original
date of grant of the Award, or otherwise cause the Award to become subject to Section 409A.  However, if the exercise period of an Option
is extended at a time when the Exercise Price of the Option equals or exceeds
the Fair Market Value of the Stock that could be purchased, such extension will
not be considered an extension of the original Award.

 

Section 10.3         Effective Date and Duration of Plan.  The Plan will be effective January 13, 2010 (the “Effective
Date”), the date of its adoption by the Board. 
The Plan will remain in effect until the earliest of the date (a) all
shares authorized to be issued or transferred hereunder have been issued or
transferred (b) the Plan is terminated by the Board, or (c) the 10th
anniversary of the Effective Date, and will continue in effect thereafter with
respect to any Awards outstanding at the time of such termination.

 

Section 10.4         Unfunded Status of Plan.  The Plan will be unfunded.  The Corporation will not be required to
establish any special or separate fund nor to make any other segregation of
assets to assume the payment of any benefits under the Plan.  With respect to any payments not yet made to
a Participant pursuant to an Award, nothing contained in the Plan or any Award
will give any such Participant any rights that are greater than those of a
general unsecured creditor of the Corporation, provided that the Committee may
authorize the creation of trusts or make other arrangements to meet the
Corporation’s obligations under the Plan to deliver cash, shares or other
property pursuant to any Award, which trusts or other arrangements will be
consistent with the “unfunded” status of the Plan unless the Committee
otherwise determines.

 

Section 10.5         Tax Withholding.  Whenever the Corporation proposes or is required to
distribute Stock under the Plan, the Corporation may require the recipient to
remit to the Corporation an amount sufficient to satisfy any Federal, state and
local tax withholding requirements prior to the delivery of any certificate for
such shares or, in the discretion of the Committee, the Corporation may withhold
from the shares to be delivered the minimum number of shares sufficient to
satisfy all or a portion of such tax withholding requirements.  Whenever payments under the Plan are to be
made in cash, such payments may be net of an amount sufficient to satisfy any
Federal, state and local tax withholding requirements.

 

Any Award may provide
that the Participant may elect, in accordance with any conditions set forth in
such Award, to pay any withholding taxes in shares of Stock, provided that the
Participant, by accepting the Award will be deemed to instruct and authorize
the Corporation or its delegatee for such purpose to sell on his or her behalf
a whole number of shares of Stock from those shares of Stock issuable to the
Participant in payment of vested shares of Restricted Stock or Restricted Stock
Units as the Corporation or its delegatee determines to be appropriate to
generate cash proceeds sufficient to satisfy the minimum tax withholding
obligation.  This direction and
authorization is intended to comply with the requirements of Rule 10b5-1(c)(1)(i)(B) of
the Exchange Act, and to be interpreted to comply with the requirements of Rule 10b5-1(c) of
the Exchange Act.  Such shares will be
sold on the day the Restricted Stock or Restricted Stock Units become vested,
which is the date the tax withholding obligation arises, or as soon thereafter
as practicable.  Unless otherwise
provided by the Committee, the Participant 

 

20

 

will be responsible for
all brokerage fees and other costs of sale, and the Participant will agree to
indemnify and hold the Corporation harmless from any losses, costs, damages, or
expenses relating to any such sale.  To
the extent the proceeds of such sale exceed the Participant’s minimum tax
withholding obligation (e.g., because of the need to sell whole
shares), the Corporation or its delegatee will pay such excess in cash to the
Participant through payroll as soon as practicable.  The Corporation is under no obligation to
arrange for such sale at any particular price. 
The Participant agrees to pay to the Corporation as soon as practicable,
including through additional payroll withholding, any amount of the tax
withholding obligation that is not satisfied by the sale of shares described
above.

 

Section 10.6         Benefits. 
Amounts received under the Plan are not to be taken into account for
purposes of computing benefits under other plans.

 

Section 10.7         Successors and Assigns.  The terms of the Plan will be binding upon the
Corporation and its successors and assigns.

 

Section 10.8         Headings.  Captions preceding the sections hereof are inserted
solely as a matter of convenience and in no way define or limit the scope or
intent of any provision hereof.

 

Section 10.9         Federal and State Laws, Rules and
Regulations.  The Plan and the grant of Awards will be
subject to all applicable Federal, state, and local laws, rules and
regulations and to such approval by any government or regulatory agency as may
be required.

 

Section 10.10       Governing Law. 
To the extent not preempted by Federal law, the Plan, any Award
Agreement, and documents evidencing Awards or rights relating to Awards will be
construed, administered and governed in all respects under and by the laws of
the State of Delaware, without giving effect to its conflict of laws
principles.  If any provision of the Plan
will be held by a court of competent jurisdiction to be invalid or
unenforceable, the remaining provisions hereof will continue to be fully effective.  The jurisdiction and venue for any disputes
arising under, or any action brought to enforce (or otherwise relating to), the
Plan will be exclusively in the courts in the State of Illinois, County of
Cook, including the Federal Courts located therein (should Federal jurisdiction
exist).

 

Section 10.11       Beneficiary Designation. 
Each Participant may name, from time to time, any beneficiary or
beneficiaries (who may be named contingently or successively) to whom any
benefit under the Plan is to be paid in case the Participant should die or become
Disabled before receiving any or all of his or her Plan benefits.  Each beneficiary designation will revoke all
prior designations by the same Participant, must be in a form prescribed by the
Committee, and must be made during the Participant’s lifetime.  If the Participant’s designated beneficiary
predeceases the Participant or no beneficiary has been designated, benefits
remaining unpaid at the Participant’s death will be paid to the Participant’s
estate or other entity described in the Award Agreement.

 

Section 10.12       Forfeiture Events.

 

(a)           The Committee may specify in the Award Agreement that
the Participant’s rights, payments, and benefits with respect to an Award shall
be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence
of specified events, in addition to any otherwise applicable vesting or
performance conditions of an 

 

21

 

Award.  Such events may include, but shall not be
limited to, termination of Service for Cause or any act by a Participant,
whether before or after termination of Service, that would constitute Cause for
termination of Service.

 

(b)           The Award Agreement may provide that, notwithstanding
any other provision of the Plan to the contrary, if the Participant breaches
the non-compete, non-solicitation, non-disclosure or other restrictive
covenants of the Award Agreement, whether during or after termination of
Service, in addition to any other penalties or restrictions that may apply
under any employment agreement, state law, or otherwise, the Participant will
forfeit:

 

(i)            any and all Awards granted to him or her under the
Plan, including Awards that have become vested and exercisable; and/or

 

(ii)           the profit the Participant has realized on the
exercise of any Options, which is the difference between the Exercise Price and
the Fair Market Value of the Option that the Participant exercises after
terminating Service and within the six-month period immediately preceding the
Participant’s termination of Service (the Participant may be required to repay
such difference to the Corporation).

 

Section 10.13       Notice. 
Any notice or other communication required or permitted under the Plan
must be in writing and must be delivered personally, sent by certified,
registered or express mail, or sent by overnight courier, at the sender’s
expense.  Notice will be deemed given (a) when
delivered personally or, (b) if mailed, three days after the date of
deposit in the United States mail or, (c) if sent by overnight courier, on
the regular business day following the date sent.  Notice to the Corporation should be sent to
CBOE Holdings, Inc., 400 South LaSalle Street, Chicago, Illinois 60605,
Attention: General Counsel.  Notice to
the Participant should be sent to the address set forth on the Corporation’s
records.  Either party may change the
address to which the other party must give notice under this Section 10.13
by giving the other party written notice of such change, in accordance with the
procedures described above.

 

Section 10.14       Awards Not Transferable. 
Except as otherwise provided in the Award Agreement, no Option,
Restricted Stock Award, or Restricted Stock Unit (or the right to receive
shares of Stock under such Award) may be sold, transferred, exchanged, pledged,
assigned, garnished, or otherwise alienated or hypothecated, other than by will
or by the laws of descent and distribution, or pursuant to a domestic relations
order (as defined in Code Section 414(p)). 
The Committee may require, in its discretion, a Participant’s guardian
or legal representative to supply it with the evidence the Committee deems
necessary to establish the authority of the guardian or legal representative to
act on behalf of the Participant.  The
Award Agreement for a grant of Non-Qualified Stock Options may permit or may be
amended to permit the Participant who received the Option, at any time prior to
the Participant’s death, to assign all or any portion of the Option granted to
him or her to (a) the Participant’s spouse or lineal descendants; (b) the
trustee of a trust for the primary benefit of the Participant, the Participant’s
spouse or lineal descendants, or any combination thereof; (c) a
partnership of which the Participant, the Participant’s spouse and/or lineal
descendants are the only partners; (d) custodianships for lineal
descendants under the Uniform Transfers to Minors Act or any other similar
statute; or (e) upon the termination of a trust by the custodian or
trustee thereof or the dissolution or other 

 

22

 

termination of the family
partnership or the termination of a custodianship under the Uniform Transfers
to Minors Act or other similar statute, to the person or persons who, in
accordance with the terms of such trust, partnership or custodianship are
entitled to receive Options held in trust, partnership or custody.  In such event, the spouse, lineal descendant,
trustee, partnership or custodianship will be entitled to all of the
Participant’s rights with respect to the assigned portion of such Option, and
such portion of the Option will continue to be subject to all of the terms,
conditions and restrictions applicable to the Option, as set forth herein and
in the related Award Agreement.  Any such
assignment will be permitted only if (i) the Participant does not receive
any value or consideration thereof and (ii) the assignment is expressly
permitted by the applicable Award Agreement. 
The Committee’s approval of the Award Agreement with assignment rights
will not require the Committee to include such assignment rights in the Award
Agreement with any other Participant. 
Any such assignment will be evidenced by an appropriate written document
executed by the Participant, and the Participant will deliver a copy thereof to
the Committee on or prior to the effective date of the assignment.  An assignee or transferee of an Option must
sign an agreement with the Corporation to be bound by the terms of the
applicable Award Agreement.

 

Section 10.15       Awards to Foreign Nationals and
Employees Outside the United States.  To the extent
the Committee deems it necessary, appropriate or desirable to comply with
foreign law of practice and to further the purposes of the Plan, the Committee
may, without amending the Plan, (a) establish rules applicable to
Awards granted to Participants who are foreign nationals, are employed outside
the United States, or both, including rules that differ from those set
forth in the Plan, and (b) grant Awards to such Participants in accordance
with those rules.

 

Section 10.16       Compliance With Section 409A. 
Notwithstanding any provision of the Plan to the contrary, the Plan is,
and all Awards made under the Plan are, intended to comply with Section 409A,
including the exceptions for stock rights, short-term deferrals, separation pay
arrangements, reimbursements, and in-kind distributions, and shall be
construed, interpreted and administered accordingly.  If any provision of the Plan or the Award
Agreement needs to be revised to satisfy the requirements of Section 409A,
then such provision shall be modified or restricted to the extent and in the
manner necessary to be in compliance with such requirements of Section 409A
and any such modification will attempt to maintain the same economic results as
were intended under the Plan and Award Agreement.  The Corporation cannot guarantee that the
Awards, payments and benefits that may be made or provided under the Plan will
satisfy all applicable provisions of Section 409A.  Payments made to a Participant under the Plan
or the Award Agreement in error shall be returned to the Corporation and do not
create a legally binding right to such payments.

 

Section 10.17       Severability. 
If any
provision of the Plan or any Award Agreement is determined to be invalid,
illegal or unenforceable in any jurisdiction, or as to any person, or would
disqualify the Plan or any Award Agreement under any law deemed applicable by
the Committee, such provision shall be construed or deemed amended to conform
to applicable laws, or, if it cannot be so construed or deemed amended without,
in the Committee’s determination, materially altering the intent of the Plan or
the Award Agreement, such provision shall be stricken as to such jurisdiction,
person or Award Agreement, and the remainder of the Plan and any such Award
Agreement shall remain in full force and effect.

 

23

 

Section 10.18       Employment Agreement. 
Notwithstanding
any provision of the Plan or an Award Agreement to the contrary, to the extent an employment agreement between a Participant and the
Corporation or an Affiliate provides vesting terms with respect to an Award
that are more favorable to the Participant than those set forth in the Plan or
an Award Agreement, the vesting terms in such employment agreement shall
control.

 

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  Exhibit 10.46    
    

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

Avail-TVN  

 TVN—CSB ADULT VOD SERVICES AGREEMENT  

        This agreement (the "Agreement"), dated as of April 8, 2010 (the
"Effective Date"), is entered into by and between COLORADO SATELLITE BROADCASTING, INC., a
Colorado corporation ("CSB"), with offices located at 7007 Winchester Circle, Suite 200, Boulder, CO 80301, and TVN
ENTERTAINMENT CORPORATION, a Delaware corporation doing business as Avail-TVN ("TVN"), with offices located at 15301
Ventura Boulevard, Building E, Suite 3000, Sherman Oaks, CA 91403 (each, a "Party" and collectively, the
"Parties"). 

        WHEREAS, CSB is the producer, owner, license holder and/or distributor of entertainment programming, and wishes to distribute certain
programming to owners/operators of cable, telco, and DBS systems and other systems which distribute video programming to subscribers/customers for use on a video-on-demand
basis; 

        WHEREAS, TVN is engaged in the business of, among other things, acquisition, delivery and management
(e.g., encoding, asset and platform management, and digital file transport) of video grade digital files for use in video distribution systems offering
content on a VOD basis, as well as sales and licensing of VOD programming offerings to Operators; 

        WHEREAS, the Parties are parties to that certain LICENSING, ENCODING AND TRANSPORT AGREEMENT FOR VIDEO ON DEMAND (VOD) dated
April 1, 2003, as amended by that certain AMENDMENT TO LICENSING, ENCODING AND TRANSPORT AGREEMENT FOR VIDEO ON DEMAND dated June 29, 2007 (together with any other existing agreements
between TVN and CSB, and any agreements between CSB and Avail Media, Inc., the "Prior Agreements"), and wish to enter into a new agreement for
the continued provision of services by TVN to CSB for [***] Content (defined below) under the terms and conditions of this Agreement, which, together with the
[***] Content Agreement (defined below) shall collectively supersede and replace the Prior Agreements as of the Effective Date; and 

        NOW, THEREFORE, in consideration of the premises and the mutual and several promises contained herein, TVN and CSB hereby agree to the
following terms and conditions: 

	1.
	DEFINITIONS. Capitalized terms used in this Agreement shall have the meanings set forth below, unless
otherwise defined in this Agreement.

	1.1
	"A La Carte" means the offering of a VOD program to customers/subscribers on a [***]
basis.

	1.2
	"[***]  Content" and "[***]  Programming" mean programming that consists of [***]
content commonly referred to or recognized as rated
[***], including without limitation programming commonly referred to or recognized as [***], but not including [***] Content.

	1.3
	"Agreement" has the meaning set forth in the first paragraph above.

	1.4
	"Authorized Systems" means those TVN Systems that are authorized by CSB (or TVN, subject to  Section 2.2 below) to receive the VOD Titles that comprise a specified
VOD Package.

	1.5
	"[***]"
or "[***]" is defined in Section 5.2.1 below. 

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

	1.6
	"Carriage Agreement" means the agreement (whether between TVN and an Operator, or CSB and an Operator)
governing the terms for carriage of the CSB VOD Service.

	1.7
	"Content Provider Requirements" or "CPR" means that set of
specifications, processes and procedures published and updated by TVN from time to time, which content providers must follow.

	1.8
	"CSB Direct Licensee" means an Operator who licenses the CSB VOD Service via a Carriage Agreement between
that Operator and CSB.

	1.9
	"CSB VOD Affiliate" means an Operator who carries the CSB VOD Service either as a TVN Sublicensee or as a
CSB Direct Licensee.

	1.10
	"CSB VOD Service" means the collection of all of CSB's VOD [***] Programming
services and encompasses all [***] Programming distributed by CSB for use on a VOD basis.

	1.11
	"Delivery Carve-out Operators" is defined as [***].

	1.12
	"Distribution System" means the plant, system, mechanism or other means that is used to distribute
multichannel video programming to subscribers.

	1.13
	"FOD" means the offering of a program to VOD Enabled Subscribers on a free on demand basis
(i.e., with no associated charges).

	1.14
	"Gross Revenues" is defined as [***].

	1.15
	"Group 1 Operators" is defined as all Operators except for [***].

	1.16
	"Group 2 Operators" is defined as the following Operators: [***].

	1.17
	"Law", for purposes hereof, means all laws, statutes, ordinances, codes, regulations, rules, orders,
judgments, rulings, writs, injunctions, court and administrative decrees and other requirements imposed by any court, administrative agency or commission, governmental franchising or licensing
authority or other governmental authority or instrumentality, whether local, state or federal and other pronouncements having the effect of law of any such entity or any other laws or reported
decisions of any court thereof, including principles of common law.

	1.18
	"[***]
Content" or "[***]  Programming" means programming that depicts [***] which do not include [***].

	1.19
	"Metadata" means descriptive data associated with a VOD Title, which may vary in depth from merely
identifying the associated Package, title or information to populate an electronic program guide, to providing a complete index of different scenes in a movie or providing terms detailing how the VOD
Title and/or associated VOD Package may be displayed, copied, or sold, and, for the purposes of this Agreement, it shall conform to [***] specifications (and updates thereto as
specified by TVN).

	1.20
	"Minimum Terms" is defined in Section 8.1 below.

	1.21
	"[***]" is defined in  Section 9.1.2 below.

	1.22
	"Monthly Transmission Planner" or "MTP" means the list of
VOD Titles that CSB plans to distribute for a particular month, the template for which is provided in the CPR.

	1.23
	"Net Revenues" is defined as [***].

	1.24
	"Operational Requirements" is defined in  Section 3.4.5 below.

	1.25
	"Operator" means the entity that, directly or indirectly, owns or controls one or more Distribution
System(s). 

2

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

	1.26
	"Party" or "Parties" is defined in the first paragraph of
this Agreement.

	1.27
	"Pre-Existing TVN Sublicensees" means Operators who are TVN Sublicensees as of
[***], as identified in Schedule D.

	1.28
	"Pre-Existing CSB Direct Licensees" means Operators who are CSB Direct Licensees as of
[***], as identified in Schedule D.

	1.29
	"Provider Remote Interface" or "PRI" is defined in  Section 5.6 below.

	1.30
	"Reserve Capacity" means transport capacity that TVN has reserved for the CSB VOD Service, which TVN will
make available for the VOD Titles.

	1.31
	"[***]" means the [***] of [***]
payable by an Operator to the entity (either TVN or CSB) licensing the CSB VOD Service to such Operator.

	1.32
	"SVOD" means a package of programming offered to VOD Enabled Subscribers where,
[***], the subscriber can watch [***] with "on demand" functionality over a set period of time as often as desired on a [***]
basis. "SVOD Subscriber" and "SVOD Subscription" means a VOD-Enabled Subscriber who
[***] for access to such [***] offered on [***] basis, as the context may require.

	1.33
	"Term", "Initial Term" and "Renewal
Term" are defined in Section 13.1 below.

	1.34
	"Territory" means [***], and the territories and possessions of each.

	1.35
	"TVN Affiliate Agreement" means the agreement between TVN and an Operator pursuant to which TVN delivers
VOD programming to the Operator, and the Operator makes such VOD programming available to its VOD Enabled Subscribers via its VOD Servers.

	1.36
	"TVN Equipment" means the receiving and/or management equipment (i.e., hardware and/or software)
that is owned or otherwise configured and managed remotely by TVN, including, without limitation revisions and upgrades thereto, which is used by TVN in connection with the delivery and/or management
of VOD programming, and which is located in the facilities of Operators.

	1.37
	"TVN Sublicensee" means an Operator who sublicenses the CSB VOD Service via a Carriage Agreement between
such Operator and TVN.

	1.38
	"TVN System" means a Distribution System which is (i) owned or operated by a cable, local exchange
carrier (LEC) or long distance carrier of telephony and/or telecommunications services (including, without limitation, [***]), a company providing video programming via
internet protocol, and/or a DBS Operator, (ii) located or operating in the Territory, and (iii) served by a VOD receive site(s) where the TVN Equipment is deployed.

	1.39
	"[***]  Systems" means the Distribution Systems owned and operated by
[***].

	1.40
	"Video On Demand" or "VOD" means the distribution of video
programming on an "on demand" basis, such that a VOD Enabled Subscriber can select a program, and begin viewing the program [***], including on [***]
basis, as applicable.

	1.41
	"VOD Distribution Services" means the collection of services offered by TVN for the acquisition, delivery
and management (e.g., encoding, asset and platform management, and digital file transport) of [***] files for use in
Distribution Systems.

	1.42
	"VOD Enabled Subscriber" means any person or entity who has the capability to receive VOD programming
through or from a Distribution System. 

3

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the
Securities and Exchange Commission together with such request for confidential treatment.

	1.43
	"VOD Package" refers to the mapping or routing structure through which VOD programming is delivered
[***] to Operators, where each VOD Package is comprised of VOD Titles which have a common: (i) Provider Content Tier, (ii) unique distribution site list reachable
via a common multicast pitch, and (iii) unique package parameters (e.g., poster art format and codec); and where each new VOD Package requires a setup process in order to set and
coordinate the package parameters with the local system configurations at the relevant Operators prior to TVN delivering VOD programming as part of that VOD Package.

	1.44
	"VOD Program" means each separate piece of [***] Content for which CSB owns,
controls, manages, or licenses the VOD rights, or is otherwise a part of the CSB VOD Service, including without limitation ancillary or related content (e.g., promotional or other supporting
programming) which is otherwise a part of the CSB VOD Service.

	1.45
	"VOD Server" means the hardware and software system(s) that ingests VOD programming directly or indirectly
from the TVN Equipment and facilitates or enables playback of VOD programming, and which is/are located at the VOD receive site(s) of Operators.

	1.46
	"VOD Services Provider" or "VSP" means a company that
provides digital file transport of VOD programming to Operators, such as [***].

	1.47
	"VOD Title" means each [***] version of a VOD Program. A VOD Title has an
associated [***]. Each [***] for the [***] VOD Program constitutes a [***] VOD Title. For example,
[***]. A VOD Title may also be referred to in this Agreement as a "file". 

2.     GRANT OF RIGHTS  

	2.1
	Authorized Systems. CSB hereby grants to TVN the non-transferable, non-assignable,
limited license to deliver VOD Titles to the Authorized Systems for the applicable VOD Package(s), as identified in Schedule A, which Schedule is
incorporated herein by reference and which may be expanded by CSB (or by TVN under Section 2.2 below) from time to time to include additional
Authorized Systems. Notwithstanding the foregoing or any other provision set forth in this Agreement, under no circumstances shall TVN designate a Delivery Carve-Out Operator to be an
Authorized System unless approved in advance by CSB. With respect to adding Authorized Systems, in order for a Distribution System to be considered an Authorized System(s) for a particular VOD
Package(s) (such Distribution Systems referred to herein as "Authorized Systems"): (i) CSB shall provide TVN with written notice that CSB has
authorized such Distribution System to receive the applicable VOD Package(s) (or if TVN is authorizing the Distribution System, then TVN shall notify CSB of such in accordance with  Section 2.2
below), and (ii) the Operator of such Distribution System(s) shall provide authorization to TVN for delivery of the VOD Titles
comprising the applicable VOD Package(s) to such Distribution System(s), at which time Schedule A shall be deemed automatically amended to
include such Distribution System as an additional Authorized System(s). TVN will add such Authorized Systems to its multicast delivery for the applicable VOD Package(s) no later than ten
(10) business days from receipt of such authorizations. A list of existing Authorized Systems and VOD Packages as of the Effective Date can be found in the PRI toolset, which will be updated
throughout the Term to reflect the latest list of Authorized Systems.

	2.2
	TVN's Rights to Sublicense the CSB VOD Service. CSB hereby grants to TVN the rights to
sub-license the CSB VOD Service to Operators, subject to the terms set forth in Section 8 below (Sublicensing and Standard Terms).
The applicable systems of the TVN Sublicensees shall be deemed Authorized Systems under Schedule A, which Schedule shall be automatically amended
to include such systems upon the commencement of the applicable sublicense. TVN 

4

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

will
keep CSB apprised in writing (including e-mail) and reasonably in advance of all TVN Sublicensees that TVN adds to Schedule A
under this section.  

	2.3
	Ownership of Program Copyrights. TVN acknowledges that, as between TVN and CSB, the copyrighted material,
trademarks, service marks, and other intellectual property included in the VOD Programs, including the names of the VOD Programs, are the property of CSB (or its suppliers) and that TVN has not and
shall not acquire any proprietary rights therein by reason of this Agreement.

	2.4
	Reservation of Rights. CSB reserves all rights in and to the VOD Programs and other intellectual property of
CSB for its own use, except for the specific rights that are expressly granted to TVN under this Agreement. 

3.     CSB OPERATIONAL REQUIREMENTS  

	3.1
	VOD Title Selection and VOD Packages. CSB shall, in CSB's sole discretion, determine the VOD Programs and
VOD Titles that it makes available as part of the CSB VOD Service and each of the VOD Packages offered thereunder. CSB may launch additional VOD Packages during the Term by providing TVN with
[***] written notice.

	3.2
	Content Provider Requirements. CSB acknowledges that TVN's role as a VOD distributor requires programming
distributed by TVN to be compliant with TVN's Content Provider Requirements (the "CPR") and applicable Operator specifications. CSB shall comply with
the CPR and any modifications made thereto; provided that (i) CSB will not be required to comply with any new or revised terms to the CPR until [***] receipt of such
modifications to the CPR, and (ii) any amended requirements in the CPR that are applicable to CSB will be [***] applied to all other Adult Content VOD networks using TVN
for their VOD distribution.

	3.3
	Monthly Transmission Planner. [***] prior to the first day of each month during the
Term, CSB shall provide to TVN a Monthly Transmission Planner (the "MTP"), as described in the CPR, setting forth CSB's needs for the applicable month,
including, for each VOD Title to be distributed by TVN in such month: [***]. In the event that CSB has not provided an MTP to TVN [***] prior to the
beginning of the applicable month, unless waived in writing by TVN, CSB will pay TVN the MTP late fee described in Subsection 2.3 of Section D of
Schedule C.

	3.4
	Delivery of Titles to TVN.

	3.4.1
	Delivery and Timing. CSB shall deliver to TVN [***] (i) the VOD Programs
and/or VOD Titles and (ii) all associated Metadata, each in accordance with the then-current CableLabs specification and TVN's CPR, at least twenty-one (21) days
in advance for pre-encoded VOD Titles, and thirty (30) days in advance for VOD Titles requiring TVN encoding or transcoding, of each applicable VOD Title's exhibition start date as
that date is set forth in the applicable Metadata.

	3.4.2
	Qualification. CSB may deliver to TVN VOD Titles that have been pre-encoded
in-house by CSB or by a third party authorized by CSB (each such third party encoding provider, a "Third Party Encoder"), provided that CSB
or such third party has successfully completed TVN's pre-qualification process (used to verify compliance with TVN and industry standards, and is consistently applied) for each unique
codec, bitrate, and collection of encoder settings used in the encoding of the VOD Titles prior to TVN providing the VOD Distribution Services with respect to such VOD Titles. It is acknowledged that
as of the Effective Date, CSB has been qualified as an encoder for [***]. CSB acknowledges that in the event it intends to distribute VOD Titles encoded at other bitrates, in
other codecs, or with alternative encoder settings, CSB would need 

5

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

to
be re-qualified prior to providing such VOD Titles. For the qualification of any Third Party Encoder, CSB shall pay TVN a Third Party Encoder Qualification Fee as set forth
in Section C Subsection 1.3 of Schedule C.  

	3.4.3
	Delivery of Pre-Encoded Content. Any entity delivering pre-encoded VOD Titles to
TVN shall (i) deliver the pre-encoded VOD Titles via a TVN-approved FTP site, and (ii) be responsible for generating a verifiable date and timestamp for the
complete transfer of all pre-encoded VOD Titles to TVN. CSB shall also ensure that the encoding rate used for any pre-encoded HD VOD Titles complies with the requirements of
each applicable Authorized System.

	3.4.4
	Closed Captioning and Other Authorized System Requirements. CSB shall ensure that each VOD Program and VOD
Title delivered to TVN hereunder is in compliance with the closed captioning requirements and any other requirements (and any exceptions thereto) of the applicable Authorized Systems.

	3.4.5
	Delivery Errors. In the event that VOD Programs or VOD Titles are received by TVN out of compliance with
the operational requirements described in this Section 3.4 (the "Operational Requirements") on a
frequent or repeated basis, it shall be considered a "Delivery Error." In such case, TVN will promptly inform CSB, and give CSB an opportunity to
respond and address the issue. If the Delivery Error(s) continue, or in the event that TVN is compelled to perform quality control ("QC") activities due
to such prior repeated non-compliance, TVN may charge and CSB will pay the applicable Delivery Error fee; it being understood that QC activities will only be performed until TVN reasonably
ascertains that the applicable Delivery Errors have been satisfactorily addressed. 

4.     ADDITIONAL ADULT CONTENT PROVIDER CONSIDERATIONS  

	4.1.
	Editing Standards. CSB shall ensure that all VOD Titles delivered to TVN pursuant to this Agreement shall
be limited to [***] editing standards, as commonly understood in the cable television industry, and appropriately classified, consistent with the following editing
standards:

	4.1.1.
	With
respect to the editing standard currently known as "[***]", the VOD Titles may depict [***];
however, [***] VOD Titles shall not depict [***].

	4.1.2.
	With
respect to the editing standard currently known as "[***]", the VOD Titles may depict [***];
however, "[***]" VOD Titles shall not depict [***].

	4.1.3.
	With
respect to the editing standard currently known as "[***]", the VOD Titles may depict [***];
however, "[***]" VOD Titles shall not depict [***].

	4.1.4.
	With
respect to the editing standard currently known as "[***]", the VOD Titles may depict [***].

	4.2.
	Restricted Content. CSB shall not deliver to TVN any VOD Title that depicts [***].
CSB assumes all responsibility for ensuring that the VOD Titles comply with this Section 4.2 and  Section 4.1 above.

	4.3.
	Additional CSB Responsibilities. CSB shall be responsible for all of the
following:

	4.3.1.
	Obtaining
clearances of all necessary rights and licenses with respect to the production, distribution, and exhibition of all VOD Titles to be
distributed under this Agreement; and

	4.3.2.
	Ensuring
that all VOD Titles made available as part of the CSB VOD Service comply with the requirements of each CSB VOD Affiliate(s), including
compliance with all 

6

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

ratings/classifications/editing
standards and restrictions and all rules regarding title naming and use of restricted words; and ensuring that the VOD Titles are appropriately classified and comply
with all Laws and government regulations (including labeling, recordkeeping and other compliance with 18 U.S.C. Sections 2257 and 2257A, to the extent required thereunder), and obtaining
approvals from any applicable governing bodies and review boards.  

	4.4.
	Operator Guidelines and Right to Reject. Operators may reject (and therefore not offer to their
subscribers) any VOD Title(s), and nothing herein may be interpreted to require such offering of any VOD Title(s). CSB may provide, in its sole discretion, alternative VOD Titles for any rejected
ones. In addition, CSB shall ensure that its standards and practices guidelines (the "Guidelines"), used in association with production and distribution
of the VOD Titles comprising the CSB VOD Service, include, at a minimum, guidelines that ensure compliance with (i) all applicable Laws, rules and regulations and the editing standards
described in Sections 4.1, 4.2 and 4.3 above, and (ii) the naming convention and any other rules enacted by each applicable Operator with
respect to [***] Content. CSB shall provide TVN with a copy of the Guidelines prior to the Effective Date and within [***] of any material updates or
modifications thereto. Should any VOD Title materially fail to conform to the Guidelines, or this Agreement, in TVN's reasonable judgment, TVN may refuse to deliver the non-conforming VOD
Title. Should a determination be made by either TVN and/or an Operator that a delivered VOD Title is materially non-conforming or an Operator does not want to distribute a VOD Title
because of its concerns about community standards, either TVN and/or the affected Operator may delete the VOD Title(s) at issue from the applicable Equipment and/or VOD Server(s). Any failure to
delete or not distribute the non-conforming or other applicable VOD Title(s) shall not relieve CSB of its obligations under this Agreement. 

5.     TVN'S VOD DISTRIBUTION SERVICES  

	5.1
	VOD Distribution Services. TVN shall provide the VOD Distribution Services set forth on the
attached Schedule B.

	5.2
	Encoding Services. Should CSB require encoding services in the future, TVN provides encoding services as
follows:

	5.2.1
	For
[***].

	5.2.2
	For
[***].

	5.2.3
	For
[***]. For any [***]; provided that TVN will support applicable Operator encoding rate requirements
which may differ from this rate, provided that any such alternative rates are (i) agreed to in writing between CSB and the applicable Operator and (ii) communicated by CSB to TVN prior
to TVN performing encoding; provided further that TVN shall not be required to encode [***] VOD Programs at more than [***] encoding rates across the
CSB VOD Titles in any given [***] (for example, [***], TVN will not be required to accommodate CSB's request to encode at any additional
[***] encoding rates in that [***]). CSB shall be responsible for ensuring that any alternative [***] encoding rate complies
with the requirements of each applicable Authorized System.

	5.2.4
	For
other VOD encoding specifications, the Parties will negotiate in good faith the terms under which TVN may provide such other encoding services. 

7

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

	5.3
	TVN Delivery of Titles.

	5.3.1
	For
all VOD Programs and/or VOD Titles delivered to TVN in accordance with the Operational Requirements, TVN will deliver the applicable VOD Titles and
the associated Metadata to the TVN Equipment at the applicable Authorized Systems, pursuant to the terms and conditions of this Agreement and in accordance with TVN's multicast delivery, in advance of
each applicable VOD Title's exhibition start date.

	5.3.2
	TVN
will ensure the VOD Titles are delivered to the TVN Equipment and made ready for hand-off to the VOD Server at the Authorized Systems;
provided, however, that TVN shall not be responsible for delivery to any Authorized System which is unwilling or unable to accept the VOD Titles or has disabled the TVN Equipment, due to reasons
outside the immediate control of TVN.

	5.3.3
	TVN
shall perform a Metadata quality control ("QC") review against the XML files provided by CSB to verify that the Metadata is compliant with
[***] and the CPR and will communicate any errors to CSB in a timely manner. TVN shall make no editorial changes to any CSB Metadata.

	5.3.4
	In
the event that TVN does not, in all material respects, meet all of the requirements of Sections 3.5.1 and
3.5.2 on a [***] basis and fails to cure the same [***] after notice of such failure to TVN, and such performance issues are not
due to the acts or omissions of CSB or the Authorized Systems or due to an un-communicated or mutually agreed upon change in formats or standards or other reasons outside of the immediate
control of TVN, it shall be considered a material breach of this Agreement.

	5.4
	Operator Instructions. If TVN is notified by an Operator to not deliver one or more VOD Titles to one or
more of its systems, TVN shall notify CSB of such instructions promptly, and will comply with such instructions until such time that Operator notifies TVN otherwise. Nothing herein shall require TVN
to violate its obligations set forth in a TVN Affiliate Agreement.

	5.5
	Requests Outside of Normal Operational Processes. Should CSB request TVN to encode and/or deliver a VOD
Title other than as outlined in the Operational Requirements, TVN will, in its sole discretion, determine if it can meet CSB's request.

	5.6
	Provider Remote Interface. During the Term, TVN will provide CSB access to TVN's web-based asset
management toolset, the Provider Remote Interface ("PRI"), through which CSB will be able to view asset states and delivery confirmations.

	5.7
	Centralized Storage. As an optional service, TVN will provide near-line centralized storage of
VOD Titles at TVN's facility at the rate set forth in Section 1 of Section C of Schedule C. CSB shall notify TVN in writing of its
desire to utilize this option on a [***] basis. 

6.     RESERVE CAPACITY  

	6.1
	Reserve Capacity. TVN will initially reserve [***] transport capacity each
[***] for the CSB VOD Titles (the "Reserve Capacity"). CSB may increase (or decrease) the Reserve Capacity by providing
[***] written notice to TVN, in which case the [***] (as set forth in Section 9.1.2) shall
[***]. TVN shall not refuse any Reserve Capacity requests made by CSB during the Term, provided that CSB has provided [***] written notice of any such
increase to the Reserve Capacity. 

8

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

7.     CSB'S USE OF TVN'S VOD DISTRIBUTION SERVICES  

	7.1
	Encoding Services. It is acknowledged that as of the Effective Date CSB encodes its VOD Titles itself
"in-house". In the event that CSB decides to outsource some or all of its encoding/transcoding work in the future, it may, in its sole election, use TVN; or a Third Party Encoder in
accordance with Section 3.4, provided that such Third Party Encoder is able to meet the Operational Requirements.

	7.2
	Transport Services. CSB shall use TVN's transport services for all delivery of VOD Titles to TVN Systems in
the Territory (including the [***] Systems at such time as all VOD systems comprising the [***] Systems become TVN Systems), subject to the following
permitted exceptions:

	7.2.1
	Carve-Out Operators: [***].

	7.2.2
	[***] Systems: [***].

	7.2.3
	Hospitality Network: [***].

	7.3
	Scope. This Agreement contemplates that the VOD Titles will be offered on [***]
basis only with [***]. In the event that the Parties agree to include [***] content in the VOD Titles or otherwise within the CSB VOD Service offered to
Group 1 Operators only, the Parties will negotiate how the Parties will share the [***] attributable to such [***], with it being understood that any
such [***] between CSB and TVN will be based upon [***] received by CSB from such [***], [***]. In the
event that CSB wishes to offer the VOD Titles to Group 1 Operators (i) under a different business model, such as on [***] basis, with [***], or
(ii) as part of a broader relationship with one or more Operator(s) whereby CSB gains carriage of its VOD Titles in exchange for [***], the Parties hereto shall
negotiate in good faith with respect to such additional or revised terms to this Agreement with respect to such VOD Titles as may be mutually agreed upon in writing (including by confirmed email) in
order for TVN to provide distribution for such VOD Titles under such new business model. Notwithstanding anything to the contrary contained in this Agreement, the Parties acknowledge that this
Agreement does not apply to content other than [***] Content or ancillary or supporting programming which is [***] and otherwise a part of the CSB VOD
Service (e.g., trailers or other content promoting the VOD Titles). 

8.     LICENSING, STANDARD TERMS, AND AFFILIATE SALES  

	8.1.
	TVN Sublicensing Rights. TVN shall have the right to sublicense the CSB VOD Service (including each of the
VOD Packages offered by CSB) to (i) Pre-existing TVN Sublicensees and (ii) any Operator who at the commencement of such sublicense is not licensing the CSB VOD Service
directly from CSB; provided that, unless otherwise mutually agreed, TVN will not sublicense the CSB VOD Service to an Operator for a [***] of less than
[***] (the "Minimum Terms").

	8.2.
	Pre-existing Licensing Relationships. It is acknowledged by the Parties that, as of the
Effective Date, TVN sublicenses the CSB VOD Service to certain Operators, and CSB licenses the CSB VOD Service directly to other Operators. A list of Pre-existing TVN Sublicensees and
Pre-existing CSB Direct Licensees is shown on Schedule D. The Parties agree that neither Party will actively pursue direct licensing
agreements for the CSB VOD Service with Operators who at such time license the CSB VOD Service from the other Party, unless otherwise mutually agreed.

	8.3.
	Sales Coordination. TVN and CSB will use [***] efforts to conduct
[***] sales calls or meetings to provide status updates, share market feedback, and coordinate efforts. In addition 

9

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

to
the foregoing, TVN shall, subject to confidentiality obligations with Operators, content providers, and/or other business partners/customers, confer in person, by e-mail or by telephone
at such time as it is notified by an Operator, other than a Group 2 Operator or a Delivery Carve-out Operator, that such Operator: (i) intends to drop CSB or intends to reduce the
[***] Programming it receives from CSB; or (ii) is creating or changing category menu structures or pricing, in a manner which affects CSB.  

	8.4.
	Additions to the CSB VOD Service and Additional Packages. In the event that CSB launches any new VOD
Packages or otherwise expands the CSB VOD Service, CSB shall communicate such modifications/additions, and provide any marketing materials and related details, to TVN's affiliate sales team
[***] prior to launch, so TVN can support such new VOD Packages at TVN Sublicensees.

	8.5.
	Additional Affiliate Sales Considerations.

	8.5.1.
	Subject
to Section 8.5.2 and also to the notification requirements of Section 8.3, TVN will use [***] efforts to
promote CSB's [***] Content to cable Operators to a similar extent that it promotes competitive [***] Content.

	8.5.2.
	TVN
will not encourage Operators to cease carrying or reduce the volume of CSB VOD Titles they carry on their Distribution Systems and shall use
reasonable efforts to discourage Operators from doing so. To the extent that TVN is notified by an Operator that such Operator is seeking to increase the amount of [***]
Programming they make available, TVN will ensure that such Operator has been made aware of the various VOD offerings available through CSB, and CSB agrees to make available enough
[***] Programming on an ongoing basis to fill any carriage opportunities that arise from such activities. In addition, at Operators where TVN (as opposed to the Operator)
controls what [***] content is carried, TVN will not remove or reduce the volume of CSB VOD Titles carried by such Operator(s).

	8.6.
	Linear Channel Opportunities. For Operator systems in which TVN secures carriage of a local playback linear
PPV [***] channel (i.e., the Operators receives VOD Titles via the TVN platform, then plays back a linear channel comprised of those Titles, such channel a  "Local Playback Channel"), the first such
Local Playback Channel offered and licensed to an Operator by TVN will be comprised
[***] of CSB VOD Titles, unless the CSB Local Playback Channel or the terms which CSB is willing to accept are rejected by such Operator (a "CSB
Channel"). CSB will grant TVN all rights associated with this opportunity, and the Parties will share [***], received by TVN with respect to such CSB
Channel. The Parties agree to negotiate in good faith for additional such Local Playback Channel opportunities beyond the initial "channel". 

9.     ECONOMICS  

        Each month, TVN shall earn both (i) [***] and
(ii) [***], as each is set forth below: 

	9.1
	[***].

	9.1.1
	[***]. [***].

	9.1.2
	[***]. [***].

	9.1.3
	[***]. [***].

	9.1.4
	Acknowledgement. It is acknowledged that the [***] described in this  Section 9.1 and in
Schedule C are provided as consideration in part for CSB's commitments
and the overall terms of this Agreement. [***]. 

10

 

  

 Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

	9.2
	[***]. [***].

	9.3
	[***]. [***].

	9.4
	Taxes. All charges are exclusive of applicable federal, state, and local sales, use, excise, gross receipts,
and other taxes ("Taxes") that may apply. Taxes due by Law must be properly invoiced at the same time as the fees or charges on which such Taxes are
based. In no event will Taxes include any taxes or tax-like surcharges determined by TVN's income, net worth, franchise or property. If CSB provides TVN with a duly authorized exemption
certificate, TVN will exempt CSB in accordance with Law. 

10.   PAYMENTS AND REPORTING  

	10.1
	Fees. TVN shall invoice CSB [***] for the applicable [***]
owed to TVN for services rendered by TVN and other fees incurred by CSB [***]. CSB shall remit to TVN the invoiced fees on or before [***] following the
date of the invoice from TVN. TVN may charge CSB and CSB shall pay interest at the lesser of (i) [***] or (ii) the maximum percentage allowable under applicable
Law, on fees not paid, unless such invoice is subject to a valid payment dispute.

	10.2
	[***].

	10.2.1
	CSB Payments to TVN. For all applicable Net Revenues payable to CSB, CSB shall pay
[***], on a [***] basis, the appropriate [***], along with a complete report (the
"[***] Report") detailing the calculation of [***] for such [***], within
[***] following CSB's actual receipt of the applicable revenue and/or the applicable reporting information. The [***] Report shall include, unless not
provided to CSB by an Operator (it being understood that CSB shall require the Operator provide such information in all Carriage Agreements with Operators), [***], during the
applicable period. The [***] Report shall be provided in TVN's standard reporting format (the "Affiliate Revenue Report" or
"ARR," as updated from time to time). TVN may charge CSB and CSB shall pay interest at the lesser of (i) [***] or
(ii) the maximum percentage allowable under applicable Law, on [***] not paid on time, unless such invoice is subject to a valid payment dispute.

	10.2.2
	TVN Payments to CSB. For all applicable revenues payable to TVN, TVN shall pay CSB, on a
[***] basis, CSB's applicable share of such revenues along with a [***] Report (consistent with the format of the ARR) within
[***] following receipt of the applicable revenue and reporting information. CSB may charge TVN and TVN shall pay interest at the lesser of
(i) [***] or (ii) the maximum percentage allowable under applicable Law, on [***] not paid on time, unless such invoice is subject to a
valid payment dispute.

	10.3
	Audit Rights. Each Party shall keep and maintain, and require its Operators to keep and maintain, complete
and accurate books and records for determining the [***] owed to each respective Party, as applicable. For a period of [***] following each
[***] Report, as applicable, each Party's books and records specific to the determination of amounts due to the other Party for that particular month shall be available for
inspection and audit by an independent, nationally recognized, certified accounting firm at the auditing Party's expense and at the audited Party's offices. Such audit shall be conducted in accordance
with generally accepted accounting principles without any unusual cost or expense. Any inspection or audit will be conducted no more than [***] with at least
[***] prior written notice to the audited Party, the scope of which audit shall be specifically limited to items materially relevant to the economic terms of this Agreement.
Should the audit reveal a discrepancy of more than [***] of a shortfall in payment by the audited Party to the auditing Party, then the audited Party 

11

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

shall
pay, in addition to paying any amounts owed to the auditing Party as a result of the discrepancy, the reasonable expenses associated with such audit. Notwithstanding the foregoing, if a Party
hereto intends to conduct an examination of the books and records of an Operator of such Party as the same pertains to the amounts due to the Parties hereunder, the auditing Party shall give the other
Party notice of the auditing Party's intention to do so and the other Party shall have the right to participate in said examination, if permitted by the Operator, provided that the other Party shall
share the costs of such examination with the auditing Party in proportion to the Parties' respective recoveries resulting therefrom. Once a period has been audited, the auditing Party shall not have
the right to audit the same period again. 

11.   PUBLIC ANNOUNCEMENTS  

        The Parties agree to issue a joint press release announcing this Agreement. Thereafter, neither Party shall issue a news release concerning this Agreement without
the prior written approval of the other, such approval not to be unreasonably withheld, conditioned or delayed. The aforementioned prohibition shall not be construed as limiting CSB's right to make
public disclosure as may be required
by the United States Securities and Exchange Commission or as otherwise may be required by applicable Law. 

12.   REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION  

	12.2
	Each
Party represents and warrants to the other Party that (i) such Party has the right to enter into this Agreement and to perform fully all of its
obligations under the Agreement; (ii) there are no claims, litigation or other proceedings pending or threatened that would adversely affect the other Party's rights or interests hereunder; and
(iii) it is under no contractual or other legal obligation that in any way interferes with its ability to fully, promptly and completely perform hereunder.

	12.3
	CSB
represents and warrants that it is a corporation duly organized and validly existing under the Laws of the State of Colorado. CSB further represents
and warrants that: (i) CSB has the right to grant the rights hereunder free and clear of any and all claims by any third party, (ii) it will have obtained at the time of production
appropriate releases from all persons appearing in or providing services in connection with each VOD Title; (iii) all performers in each VOD Title appearing nude and/or engaging in any form of
sexual conduct will have been older than eighteen (18) years of age; (iv) each VOD Title will have been produced and records are kept in accordance with, and each VOD Title contains the
appropriate notice required by, The Child Protection Restoration and Penalties Enhancement Act of 1990, and hereby certifies that each VOD Title will be in compliance with the labeling requirements of
Sections 2257 and 2257A of Title 18, United States Code and any amendments thereto; and (v) none of the VOD Titles provided by CSB to TVN under this Agreement will: (a) be
libelous, slanderous, obscene, or defamatory or illegally indecent; or (b) violate or infringe any civil or property rights, copyrights (including, without limitation, music synchronization,
master recording, and music performance rights through to the viewer, and dramatic and non-dramatic music rights), trademark rights, patent rights, rights of privacy, or other rights of
any person or entity; or (c) violate any Law or the closed captioning requirements of the Authorized Systems.

	12.4
	CSB
hereby agrees to indemnify, defend, and forever hold harmless TVN, its parents, subsidiaries and related entities, and the CSB VOD Affiliates, and each
of their respective present and former members, partners, directors, officers, employees, shareholders, agents, successors and assigns (collectively, the "TVN
Indemnitees") from and against any and all losses, liabilities, claims, costs, damages and reasonable expenses, including fines, forfeitures, 

12

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

penalties,
reasonable attorneys' fees, disbursements and court or administrative costs (collectively, "Liabilities"), incurred as a result of a third
party claim that arises out of (i) any breach by CSB of any term of this Agreement, including its Schedules, or any warranty, covenant or representation contained herein by CSB; (ii) the
content of the CSB VOD Service, the CSB Packages, VOD Programs and/or VOD Titles (including music performance rights through to the viewer), including, without limitation, a third party claim that the
programming content contained in any VOD Program or VOD Title constitutes an infringement of any copyright or trademark or a violation of a right of publicity, privacy, or other right of any third
party; (iii) CSB's failure to comply with all applicable Laws to which it is subject or any other failure on CSB's part that causes TVN and any TVN Indemnitee to violate any Law;
(iv) CSB's failure to have acquired at the pertinent time when all or part of the VOD Title is made available to TVN or to any CSB VOD Affiliate or to any subscriber/customer, good title to,
and/or each and every property right or other right necessary for it to satisfy the obligations imposed on it pursuant to the Agreement; (v) any civil or criminal violations of Law occurring as
a result of the acts or omissions of CSB, and/or (vi) the use of intellectual property pertaining to encoding or digital video standards, formats, processes or technology used with respect to
the VOD Titles, including without limitation the exhibition thereof and the end-user transactions for same; and shall reimburse the TVN Indemnitees for any and all legal, accounting and
other fees, costs and expenses (collectively, "Expenses") reasonably incurred by any of them in connection with investigating, mitigating or defending
any such Liabilities, and will pay all damages and costs finally awarded against TVN or any TVN Indemnitee in any such suit or proceeding or settlement thereof, provided that TVN (a) promptly
notifies CSB in writing of any such suit or proceeding; provided, however, that any failure to promptly provide such notice shall not relieve CSB of its obligations hereunder, except to the extent
that such delay has materially prejudiced CSB's ability to defend such suit or proceeding; (b) provides CSB with control over the defense or settlement of any such claim or action (except that
CSB shall not, without TVN's prior written consent, settle any claim that imposes any (1) equitable remedy against any TVN Indemnitee, (2) financial obligation for which a TVN Indemnitee
is not otherwise indemnified hereunder, or (3) any other liability or obligation upon any TVN Indemnitee (including any admission of wrongdoing by any TVN Indemnitee) which could be reasonably
expected to have an adverse effect upon the TVN Indemnitee's business, reputation or prospects; and (c) provides reasonable information and assistance, at CSB's cost and expense, in the defense
or settlement of any such claim or action. TVN may participate in any such suit or proceeding through counsel of its choice at TVN's own expense, provided that the costs associated with TVN's counsel
shall not be deemed damages or costs for purposes of CSB's indemnity hereunder. [***].  

	12.5
	TVN
represents and warrants that it is not party to any agreements for transport services for Adult Content VOD titles with any third party Adult Content
providers which contain a "most favored nations" clause.

	12.6
	TVN
hereby agrees to indemnify, defend, and forever hold harmless CSB, its parents, subsidiaries and related entities, and each of their respective present
and former members, partners, directors, officers, employees, shareholders, agents, successors and assigns (collectively, the "CSB Indemnitees") from
and against any Liabilities incurred as a result of a third party claim that arises out of any breach by TVN of any term of this Agreement, including its Schedules, or any warranty, covenant or
representation contained herein by TVN; and shall reimburse the CSB Indemnitees for any and all Expenses reasonably incurred by any of them in connection with investigating, mitigating or defending
any such Liabilities, and will pay all damages and costs finally awarded against CSB or any CSB Indemnitee in any such suit or proceeding or settlement thereof, provided that CSB (a) promptly
notifies TVN in writing of any such suit or proceeding; provided, however, that any failure to promptly provide 

13

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

such
notice shall not relieve TVN of its obligations hereunder, except to the extent that such delay has materially prejudiced TVN's ability to defend such suit or proceeding; (b) provides TVN
with control over the defense or settlement of any such claim or action (except that TVN shall not, without CSB's prior written consent, settle any claim that imposes any (1) equitable remedy
against any CSB Indemnitee, (2) financial obligation for which a CSB Indemnitee is not otherwise indemnified hereunder, or (3) any other liability or obligation upon any CSB Indemnitee
(including any admission of wrongdoing by any CSB Indemnitee) which could be reasonably expected to have an adverse effect upon the CSB Indemnitee's business, reputation or prospects; and
(c) provides reasonable information and assistance, at TVN's cost and expense, in the defense or settlement of any such claim or action. CSB may participate in any such suit or proceeding
through counsel of its choice at CSB's own expense, provided that the costs associated with CSB's counsel shall not be deemed damages or costs for purposes of TVN's indemnity hereunder.
[***].  

	12.7
	EXCEPT
WITH RESPECT TO THE INDEMNIFICATION AND CONFIDENTIALITY PROVISIONS SET FORTH IN THIS AGREEMENT, NEITHER PARTY SHALL, FOR ANY REASON OR UNDER ANY
LEGAL THEORY, BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES OR FOR LOSS OF PROFITS, REVENUES, DATA OR SERVICES, REGARDLESS OF WHETHER SUCH DAMAGES OR LOSS WAS
FORESEEABLE AND REGARDLESS OF WHETHER SUCH PARTY WAS INFORMED OR HAD DIRECT OR IMPUTED KNOWLEDGE OF THE POSSIBILITY OF SUCH DAMAGES OR LOSS IN ADVANCE. 

13.   INSURANCE REQUIREMENT  

        CSB shall procure and maintain [***], at CSB's sole expense, the following insurance coverage from a nationally-recognized insurance
carrier and in accordance with industry standards: (i) Commercial General Liability insurance that, at a minimum, covers Premises and Operations, Products and Completed Operations, Blanket
Contractual Liability for both Oral and Written Contracts and Broad Form Property Damage at liability limits of [***] each occurrence for Bodily Injury and Property Damage,
[***] each occurrence and [***] in the aggregate for Products and Completed Operations, and [***] policy General Aggregate; and
(ii) Media Perils Liability insurance (Broadcasters' Liability/Errors and Omissions) that, at a minimum, covers CSB's media activities, including production of programming, the VOD Programs and
VOD Titles and all elements thereof and all programming licensed to TVN by CSB pursuant to this Agreement (including original programming, marketing activities, sales promotions and other activities),
with coverage for, at a minimum, the offenses of defamation of character or reputation, invasion of privacy, infringement of trademark, title, slogan, trade name or service mark, infringement of
copyright or misappropriation of ideas, and at a liability limit of [***] in any [***] policy period and a maximum self-insured retention of
[***]. Each insurance policy required by this Section 13 shall be endorsed to provide that (a) TVN and the CSB VOD
Affiliates are named as additional insureds, that the proceeds thereof are payable to TVN and the CSB VOD Affiliates, as the case may be, and that the policy provides primary and
non-contributory coverage to TVN and the CSB VOD Affiliates, irrespective of any other insurance carried by TVN or any CSB VOD Affiliate, whether it be primary, excess, contingent or on
any other basis; (b) the insurer waives any rights of subrogation it may have against TVN and/or any CSB VOD Affiliate; and (c) the policy provides coverage on an "occurrence," and not a
"claims-made" basis for the Commercial General Liability insurance, and on a "claims-made" basis for the Media Perils Liability insurance. CSB shall provide to TVN standard
ACORD certificates of insurance as evidence of maintenance of all insurance policies required by this Section 13 upon the execution of the
Agreement by CSB. Such certificates shall indicate that the pertinent insurance policy shall not be canceled or modified except upon delivery of [***] prior written notice to
TVN and CSB; provided, however, that CSB shall not make any revisions to any policy that could adversely affect TVN's or any CSB VOD Affiliate's rights 

14

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

pursuant
to this Section 13 without TVN's prior written consent. In addition, such certificates shall indicate coverage for the
[***], or CSB shall provide to TVN, [***] prior to the expiration of any policy, a subsequent certificate of insurance as evidence that the pertinent
insurance continues in full force and effect. 

14.   TERM; TERMINATION  

	14.2
	Initial Term. The initial term of this Agreement shall be for [***] beginning with
the Effective Date of this Agreement (the "Initial Term"). Further, the Term shall automatically be extended for additional
[***] periods (each [***] period a "Renewal Term"), unless written notice of termination is given by
either Party [***] prior to the end of the then current Initial Term or Renewal Term. The Initial Term and each Renewal Term are collectively referred to herein as the
"Term".

	14.3
	Termination and Additional Remedies for Breach. Either Party shall have the right to terminate this
Agreement by giving written notice to the other Party if the other Party has materially breached this Agreement and has failed to cure such breach within [***] of receipt of
written notice thereof specifying the breach (it being understood that cure of a breach by TVN for failure to timely deliver a VOD Title to an Operator shall be to effect delivery of such VOD Title as
soon as practicable following notice and to use reasonable efforts to cause the Operator to make available to its Subscribers such VOD Title for the time period originally contemplated), , including
pursing its other available rights and remedies at law, in equity or otherwise. In the event of termination, TVN shall retain and distribute to the Authorized Systems, and the Authorized Systems will
have the right to continue to exhibit, any and all VOD Titles in TVN's possession until the end of each such VOD Title's license end date. Each and all of each Party's respective legal rights and
remedies provided for in this Agreement shall be construed as being cumulative, and no one of them shall be deemed to be exclusive of the others or of any right or remedy allowed by law. The exercise
by either Party of such rights or remedies hereunder shall not release or relieve the breaching Party from its performance obligations or liabilities hereunder.

	14.4
	Termination for Financial Impairment. If a Party (i) makes a general assignment for the benefit of
creditors, (ii) has appointed, voluntarily or involuntarily, any trustee, receiver, to it or a substantial part of its property, (iii) files, or has filed against it, a voluntary or
involuntary petition in bankruptcy, or (iv) makes any arrangement or otherwise becomes subject to any proceedings under the bankruptcy, insolvency, reorganization or similar Laws of the United
States or any state, and the Party fails to have any involuntary proceeding dismissed within ninety (90) days of service on the Party of notice of such involuntary proceeding, then the other
Party shall have the right at any time thereafter to terminate this Agreement by giving written notice to such Party.

	14.5
	Surviving Clauses. [***], and all provisions of this Agreement which may reasonably
be interpreted or construed as surviving the expiration or termination of this Agreement, shall survive the expiration or earlier termination of this Agreement for any reason.

	14.6
	Obligations Upon Termination. Upon the termination of this Agreement, any amounts then due hereunder shall
become immediately due and payable. Upon the expiration or earlier termination of this Agreement, TVN shall immediately discontinue the delivery of the VOD Titles. Not later than
[***] after the expiration or earlier termination of this Agreement, any copies of the VOD Titles in TVN's possession shall be destroyed or erased. 

15

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

15.   CHOICE OF LAW / DISPUTES  

	15.2
	Governing Law. This Agreement shall be construed in accordance with applicable federal Laws of the United
States of America, and the Laws of the State of California applicable to contracts entered into and to be performed therein without regard to principles of conflict of Laws, and excluding the 1980
United Nations Convention on Contracts for the International Sale of Goods and any amendments or updates thereto.

	15.3
	Disputes. The Parties hereto agree that any dispute relating to this Agreement will be submitted in writing
to a panel of two persons, one representing TVN and one representing CSB, who shall promptly meet and confer in an effort to resolve such dispute. Each representative shall be identified by notice to
the other side and may be changed at any time thereafter also by notice to the other. Any unanimous decisions of the representatives will be final and binding on TVN and CSB. In the event the
representatives are unable to resolve any dispute within [***] after submission to them, then either TVN or CSB may then refer such dispute to arbitration in accordance
with Section 15.4 below.

	15.4
	Arbitration. Except for an action pursuant to the provisions of  Section 15.7 below, the Parties
agree that all disputes that are not resolved pursuant to the procedure set forth in  Section 15.2 above and which relate to or arise out of this Agreement shall be submitted to arbitration before a
single arbitrator in Los Angeles
County in the State of California. The arbitration shall be conducted through ADR Services, Inc. ("ADR Services") or JAMS in accordance with the
applicable ADR Services or JAMS arbitration rules. The arbitration shall be heard before a retired federal court judge or an experienced attorney with experience in or knowledge of the business in
which the Parties are primarily engaged. The Parties shall select an arbitrator by mutual agreement through ADR Services or JAMS within thirty (30) days of the date the demand for arbitration
is filed. If the Parties are unable to agree on the selection of an arbitrator within such time, the administrator of ADR Services or JAMS, as the case may be, shall select an independent arbitrator.
The Parties agree that (a) they shall be entitled to conduct such reasonable discovery as the arbitrator may allow; (b) except as provided to the contrary in this Agreement to which this
arbitration provision is a part, the arbitrator shall be entitled to award the full range of relief as would be available to the prevailing Party in a court of law; (c) the arbitrator shall not
have the power to commit errors of Law or legal reasoning, and the award may be vacated or corrected on appeal to a court of competent jurisdiction for any such error; (d) the prevailing Party
in any proceeding brought under this paragraph or in any proceeding brought to enforce an arbitration award hereunder shall be entitled to its costs and to its reasonable attorneys fees incurred in
connection with the preparation and conduct of any such arbitration and/or any other proceeding hereunder, and (e) the arbitration shall be final and binding on all Parties and their respective
heirs, executors, administrators, successors and assigns. Any action to secure judicial confirmation of the arbitration award may be brought in any state or federal court of competent jurisdiction.

	15.5
	Court Action. If any Party to this Agreement brings an action in a state or federal court to enforce rights
hereunder (other than pursuant to Section 15.7 below), such action shall be barred as a result of the exclusive remedy provided in  Section 15.4
above, and the prevailing Party in any such action shall be entitled to recover its costs and expenses, including reasonable
attorneys' fees, incurred in connection with such lawsuit.

	15.6
	WAIVER OF CERTAIN RIGHTS. THE PARTIES EACH ACKNOWLEDGE AND AGREE THAT BY SELECTING ARBITRATION AS THE SOLE
AND EXCLUSIVE REMEDY FOR RESOLVING ALL DISPUTES AMONG THEM, THEY ARE WAIVING THEIR RIGHT TO A JURY TRIAL TO WHICH THEY MAY OTHERWISE BE ENTITLED. THE PARTIES HERETO ALSO WAIVE THE RIGHT TO ASSERT THE
DOCTRINE OF FORUM NON  

16

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules
and Regulations under the Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the
Securities and Exchange Commission together with such request for confidential treatment.

CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS AGREEMENT. SERVICE OF PROCESS, SUFFICIENT FOR PERSONAL JURISDICTION IN ANY
ACTION, MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE ADDRESSES FOR THE PARTIES SET FORTH IN SECTION 19  BELOW.  

	15.7
	Prearbitral or Related Awards. By this Agreement, the Parties do not intend to deprive any court of its
jurisdiction to issue a prearbitral injunction, prearbitral attachment or other order in aid of arbitration proceedings and enforcement of the award, including without limitation, injunctive relief
for the protection of intellectual property, enforcement of Section 16 (Confidentiality) below, enjoining any other Party in any action brought
by or against a third party with respect to the subject matter of the arbitration, or filing legal action to compel arbitration or selection of a neutral arbitrator under the arbitration provisions
hereof. 

16.   CONFIDENTIALITY  

        The terms and conditions of this Agreement, other than the existence of this Agreement, shall be kept confidential by the parties hereto and shall not be
disclosed by either Party to any third party except: (i) as may be required by any court of competent jurisdiction, governmental agency, Law or regulation (in such event, the disclosing Party
shall notify the other Party and redact to the extent possible before disclosing the Agreement); (ii) as part of the normal reporting or review procedure to a Party's accountants, auditors,
agents, legal counsel, and employees of partners, parent and subsidiary companies or lenders, potential financing entities or purchasers so long as all such entities and persons are bound by
confidentiality obligations that are no less restrictive than those contained in this Section 16; (iii) in connection with a sale,
acquisition, merger, joint venture or takeover; provided such third parties involved in such events are bound by confidentiality obligations that are no less restrictive than those contained in this  Section 16; and (iv) to enforce any of a Party's rights pursuant to this Agreement. The parties recognize and agree that the nature of the
services that TVN provides to CSB hereunder require TVN to share information and to maintain full and strong communications with Operators, other [***] Content providers and
other participants in the industry. To the extent that CSB desires to provide confidential information to TVN which it does not want TVN to communicate to CSB competitors, CSB shall clearly indicate
which information it wishes to keep confidential by confirmed email communication or other written means to TVN, in which case TVN shall not share such confidential information with CSB competitors
(and TVN may refuse to accept such information if it believes that it should not have such information). As used herein, "confidential information" shall not include information which (1) is or
becomes generally available to the public other than in violation of this confidentiality provision, or (2) is or becomes available to TVN on a non-confidential basis from a source
which, to the knowledge of TVN, is entitled to disclose it, or (3) was known to TVN prior to disclosure of such information by CSB, or (4) is developed by TVN without the benefit of the
information provided by CSB. 

17.   INDEPENDENT CONTRACTOR  

        The Parties hereto are independent contractors. Nothing in this Agreement may be construed to make the Parties partners or joint venturers, agents or fiduciaries
of the other, or to make either Party liable for the obligations, acts or activities of the other. 

18.   ASSIGNMENT  

        This Agreement, including both its obligations and benefits, shall inure to the benefit of and be binding upon the Parties and their respective successors,
transferees and assigns, except that neither this Agreement nor either Party's rights or obligations hereunder shall be assigned or transferred by either Party without the prior written consent of the
other Party, such consent not to be unreasonably 

17

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

withheld,
conditioned or delayed; provided, however, no consent shall be necessary in the event of an assignment to a successor or transferee entity resulting from a merger, acquisition, consolidation
or sale of substantially all assets by CSB or assignment to an entity under common control with, controlled by or in control of CSB, unless such successor or transferee is a material, direct
competitor of TVN, in which case TVN's prior written consent shall be required. 

19.   NOTICES  

        For all administrative and operational matters under this Agreement, notices shall be given to (i) Josh Rosenblatt on behalf of TVN, and (ii) Bill
Mossa on behalf of CSB, (or such other designee as TVN or
CSB may provide, as applicable). For all matters intended to have a legal effect with respect to this Agreement, or to provide financial information, unless otherwise stated herein, written notices
shall be delivered by hand, postage pre-paid mail or national overnight private mail delivery or by fax or email (with contemporaneous delivery by one of the foregoing means) to the
persons and at the addresses as set forth below and shall be deemed given upon transmission in the case of fax or email or otherwise upon delivery. Either Party may change its address for receipt of
notice to the other Party by delivering written notice of such change pursuant to this Section. 

 

 

			
	If to TVN:	 	If to CSB:
	
 James P. Riley

Chief Revenue Officer

TVN Entertainment Corp.

15301 Ventura Blvd.

Building E, Suite 3000

Sherman Oaks, CA 91403

Fax: 818-526-5001

jriley@tvn.com	
 	
Ken Boenish

President

Colorado Satellite Broadcasting, Inc.

7007 Winchester Circle, Suite 200

Boulder, CO 80301

Fax: 303-444-0848

ken@noof.com
	
 With a copy to:	
 	
With a copy to:
	
 General Counsel

TVN Entertainment Corp.

15301 Ventura Blvd.

Building E, Suite 3000

Sherman Oaks, CA 91403	
 	
General Counsel

Colorado Satellite Broadcasting, Inc.

7007 Winchester Circle, Suite 200

Boulder, CO 80301
	
 Fax: 818-526-5003

legal@tvn.com	
 	
Fax: 303-381-2369

legal@noof.com

 

 With
respect to financial matters: 

 

 

			
	If to TVN:	 	If to CSB:
	
 Controller

TVN Entertainment Corp.

15301 Ventura Blvd.

Building E, Suite 3000

Sherman Oaks, CA 91403

Fax: 818-526-5007

finance@tvn.com	
 	
Chief Financial Officer

Colorado Satellite Broadcasting, Inc.

7007 Winchester Circle, Suite 200

Boulder, CO 80301

Fax: 303-444-0734

gwilliams@noof.com

 

 18

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

20.   AMENDMENTS; WAIVER  

        This Agreement may be amended or modified and any term hereof may be waived only be a written instrument executed by all of the Parties hereto or, in the case of
a waiver, by the Party waiving compliance. Any waiver by any Party of any condition, or of the breach of any provision, term, covenant, representation or warranty contained herein, in any one or more
instances, shall not be deemed to be nor be construed as a further or continuing waiver of any such condition or of the breach of any other provision, term, covenant, representation or warranty. 

21.   SEVERABILITY  

        The invalidity under applicable Law of any provision of this Agreement shall not affect the validity of any other provision of this Agreement, and in the event
that any provision hereof would be determined to be invalid or otherwise illegal, this Agreement shall remain effective and shall be construed in accordance with its terms as if the invalid, illegal
or unenforceable provision were not contained herein. 

22.   FORCE MAJEURE  

        In the event that either Party is unable to perform any of its obligations under this Agreement (other than each Party's payment and reporting obligations as set
forth in Sections 9 and 10 above and/or elsewhere as part of this Agreement) or to enjoy any of its benefits because of the
non-operation of facilities (including any satellite or transponder not owned or controlled by the affected Party) due to any force majeure event beyond the reasonable control of the
affected Party, such as natural disaster, acts of God, inevitable accident, fire, lockout, strike or other labor dispute, riot or civil commotion, acts of terrorism, actions or decrees of governmental
bodies, failure of communication or electrical lines, or any other event beyond such Party's reasonable control (a "Force Majeure Event"), the Party who
has been so affected shall promptly give written notice to the other Party and shall use its commercially reasonable best efforts to resume performance. Upon receipt of such notice, all obligations
under this Agreement shall be immediately suspended for the duration of such Force Majeure Event, excluding the obligation to make payment when due. 

23.   CAPTIONS; HEADINGS; SCHEDULES  

        The captions and headings are inserted in this Agreement for convenience only, and shall in no event be deemed to define, limit or describe the scope or intent of
this Agreement, or of any provision hereof, nor in any way affect the interpretation of this Agreement. All references to Schedules contained in this Agreement refer to the Schedules attached to this
Agreement, which Schedules are incorporated into this Agreement where referenced in this Agreement. 

24.   NO INFERENCE AGAINST AUTHOR  

        TVN and CSB each acknowledge and agree that this Agreement was fully negotiated by the Parties and, therefore, no provision of this Agreement shall be interpreted
against any Party because such Party or its legal representative drafted such provision. 

25.   ENTIRE AGREEMENT  

        This Agreement contains the entire understanding of the Parties relating to the subject matter hereof and supersedes all Prior Agreements, which Prior Agreements
shall be deemed terminated as of the Effective Date of this Agreement. 

19

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

        This
Agreement is duly executed as of the date first written above when signed by the authorized representatives of CSB and TVN, respectively. 

 

 

			
	Agreed to and Accepted by:	 	Agreed to and Accepted by:
	
 COLORADO SATELLITE BROADCASTING, INC.	
 	
TVN ENTERTAINMENT CORPORATION
	
 /s/ KEN BOENISH
 

  Name: Ken Boenish

Title: President	
 	
/s/ JAMES P. RILEY

  James P. Riley

Chief Revenue Officer

 

 20

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

 SCHEDULE A

Authorized Systems  

[Full
list available via PRI] 

21

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

 SCHEDULE B

Standard Services  

        TVN's Standard VOD Distribution Services include the following: 

        [***]. 

22

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

 SCHEDULE C

OTHER SERVICE FEES  

        [***]. 

23

 

Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the
Securities Exchange Act. Omitted information, marked "[***]" in this Exhibit, has been filed with the Securities and Exchange Commission together with such request for
confidential treatment.

 SCHEDULE D

Pre-Existing Licensing Relationships  

        [***]. 

24

QuickLinks

Exhibit 10.46

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