Document:

ex1016.htm

    
      
        Exhibit
          10.16

      

       

       

      As
        of
        December 15, 1998

       

          The
        following
        shall constitute the principal terms of a "first look" agreement between
        the
        parties identified below, it being the intent of the parties to enter into
        a
        more formal, long-form agreement with respect to the option, purchase and
        sale
        of any particular property (or properties) as contemplated below, which
        agreement shall include the terms and conditions provided for herein (where
        applicable), and such other terms and conditions
        as are customary for such agreements in the motion picture industry taking
        into
        account the stature of Platinum Studios, LLC ("Platinum")
        and Scott
        Mitchell Rosenberg therein (including, without limitation, accounting and
        audit rights provisions, late payment financing charges, related party
        transactions, etc.) to be negotiated in good faith between the
        parties.

       

      1.             First
        Look.

       

      A.             Dimension's
        Rights. For the Term hereof (as extended,
        if extended, as provided below), Miramax Film Corp. (including Dimension
        Films)
        (hereafter, collectively, "Dimension") shall have an exclusive "first look"
        and
        option to

      purchase
        (for the option fees and purchase prices as set forth below) any and all
        properties, subject to Platinum's exclusions as set forth below, which are
        solely owned and controlled by Platinum
        (provided that if and to the extent any rights to any such properties are
        not
        solely owned and controlled by Platinum, then such rights therein as are
        solely
        owned and controlled by Platinum shall be subject to said "first look"),
        from
        the "Platinum Library" (as defined below), which Dimension desires to develop
        as
        a live-action feature film intended for initial theatrical release ("Feature
        Film") anywhere in the universe. Upon payment of the applicable portion of
        the
        purchase price (as provided in paragraph 4.B. (i) below, Platinum shall assign
        to Dimension (to the extent that said rights are owned and controlled by
        Platinum) the sole and exclusive (subject to paragraph C.(i) below) right
        under
        copyright and otherwise, to develop, produce, distribute, advertise, promote
        and
        otherwise exploit a Feature Film based on the property purchased hereunder,
        in
        any language, in perpetuity '(subject to Platinum's reserved rights and
        reversion right as set forth below), in any and all territories throughout
        the
        universe, and by any and all means and methods now or hereafter known
        (including, but not limited to, Theatrical, Non-Theatrical, Television, Home
        Video (encompassing videocassette, videodisc, all other forms of videograms
        whether now known or hereafter devised), any computer-assisted media (including,
        but not limited to, CD-ROM and similar disc systems (but not CD-I), DVD,
        Internet distribution, cable-modem and any other devices or methods now existing
        or hereafter devised) provided that the version of the Feature Film exploited
        via any such computer-assisted media must be essentially the same version
        exploited
        in the other media (i.e., in a consecutive linear format and not an interactive
        format) and certain allied and ancillary rights, including music, music
        publishing, screenplay publishing and soundtrack rights (subject to Platinum's
        reserved rights and administrative rights as set forth below) (collectively,
        the "Rights"). The Rights shall also include the right to produce and exploit
        Feature Film sequels, prequels and/or remakes (as such terms are customarily
        understood in the motion
        picture industry, i.e., with respect to sequels and/or prequels, Feature
        Films
        in which any of the characters appearing in
        the
        first Feature Film based on a property are depicted in new or different events
        than those in which such characters participated
        in such first Feature Film, and with respect to remakes, Feature Films in
        which
        the characters appearing in the first
        Feature Film based on a property are depicted as participating for the most
        part
        in the same events in which said characters participated in such First Feature
        Film) of any Feature
        Film produced pursuant hereto, subject to the payment of the
        applicable option fees and purchase prices and Platinum's reversion rights
        as
        set forth below.

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      B.            First
        Look Submissions/Dimension Response Period.

       

              (i)              The
        Parties acknowledge that the "Platinum Library"
        consists of hundreds of comics, graphic novels, serializations,
        storybooks, etc. During the Term (as defined in paragraph 2.C below), Platinum
        shall select and present properties from the Platinum Library for Dimension's
        first look consideration hereunder, provided that Platinum shall present
        no less
        than twenty-five (25) such properties in each year of the Term. The first
        such
        presentation shall consist of no less than ten
        (10)
        such properties. Those properties in the Platinum Library not so selected
        and
        presented by Platinum shall not be presented
        (i.e., "pitched") by Platinum to third parties other -
        than
        talent (i.e., writers, directors and/or actors) during the Term, except that
        Platinum shall have the right to present to any third parties those properties
        that Platinum wishes to develop for
        initial release in television and/or as animation (as opposed to live-action)
        projects, provided that Platinum informs such parties of Dimension's Feature
        Film "first look" rights hereunder with respect thereto.

       

              (ii)'                Within
        ten (10) business days of Platinum's presentation
        of a Platinum property to Dimension as provided above (provided that the
        property in question is either an English-language property or an
        English-language translation thereof is provided to Dimension by Platinum,
        and,
        if not, then Dimension shall have twenty (20) business days to respond)
        (hereinafter, the "Dimension Response Period"), Dimension shall notify
        Platinum in writing as to whether or not it will option such property hereunder.
        Dimension's failure to provide any written
        notice to Platinum within the Dimension Response Period (or
        notice that it will not option such property) shall constitute a rejection
        of
        said property hereunder, giving Platinum the right to develop and/or produce
        the
        property elsewhere without any further obligation to Dimension; provided,
        however, that Platinum shall not submit more than ten (10) properties for
        Dimension's consideration hereunder within any consecutive ten (10) business
        day
        period (a "Bulk Submission"), unless the parties have mutually agreed in
        good
        faith on the time period in which Dimension must respond to the properties
        included in such Bulk Submission. If Dimension notifies Platinum in writing
        within the Dimension Response Period that it will option such property
        hereunder, Dimension shall be obligated to pay the applicable option fee
        as and
        when provided for in paragraph 4 below (i.e., upon Platinum's furnishing
        to
        Dimension of a short- form option agreement and Dimension's approval of chain
        of
        title for the applicable property, subject to the additional terms and
        conditions set forth in paragraph 4.A below), failing which Platinum shall
        have
        the right to develop and/or produce the property elsewhere without any further
        obligation to Dimension.

       

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      C.             Platinum's
        Reserved Rights.

       

              (i)              Platinum
        hereby reserves (a) "television program
        rights" (defined as the right to develop, produce, distribute, advertise,
        promote and otherwise exploit any property as a television pilot,
        movie-of-the-week, special or episodic series for initial exhibition in any
        television medium, and not to be released theatrically unless the parties
        otherwise mutually agree in writing on the terms of such theatrical exploitation
        or unless and until Dimension's rights with respect to such property terminate
        or revert to Platinum as provided for herein), subject to paragraph C.(ii)
        and
        (iii) below, (b) all print publication rights in any and all properties other
        than screenplay

      publishing,
        subject to paragraph C.(iv) below,(c) all interactive
        rights, (d) theme rights, (e) live theater and radio rights and (vi) all
        animation rights, subject to paragraph C.(iii) below. Any rights not
        specifically granted to Dimension herein are reserved to Platinum. Without
        limiting the generality of the foregoing, Dimension hereby acknowledges and
        agrees that it shall only acquire non-exclusive rights with respect to the
        characters appearing in any Feature Film produced pursuant hereto, and that
        Platinum shall have the right to use and exploit such characters (whether
        or not
        included in the original property) in connection with the exercise of any
        of
        Platinum's reserved (and/or reverted) rights hereunder, subject to paragraph
        C.
        (v) below. For the avoidance of doubt, if the property purchased by Dimension
        hereunder is a serial (e.g., a comic book or strip with more than one episode,
        volume or issue), Dimension's
        rights to the elements appearing in the property (e.g., characters, settings,
        devices, etc.) shall be negotiated in good faith as part of the long-form
        option
        agreement to be entered into with respect to such property pursuant hereto
        (i.e., the
        parties shall mutually agree on which elements of such property shall be
        exclusively granted to Dimension for purposes of exercising Dimension's Rights,
        subject always to Platinum's reserved rights as provided herein, and provided
        that in no event shall Dimension's Rights include any elements which appear
        in
        the serial after the date of Dimension's purchase of such property hereunder,
        all right, title and interest to which shall be reserved to Platinum). In
        the
        event that the parties are unable to so mutually agree with respect to such
        elements, then Platinum shall have the right to withdraw said property from
        this
        first look agreement, and Platinum shall have the right to develop and/or
        produce the property elsewhere without any further obligation to
        Dimension.

       

              (ii)                other
        than half-hour animated television series
        rights which are addressed in paragraph C.(iii) below, the television program
        rights to properties purchased by Dimension hereunder shall be subject to
        a
        first negotiation/first refusal right in favor of Dimension. For purposes
        hereof, said first negotiation/first refusal right shall mean the following:
        Platinum and Dimension shall negotiate in good faith for a period of ten
        (10)
        business days, and in the event that the parties cannot reach agreement within
        said period on the terms and conditions of Dimension's acquisition of any
        such
        television program rights, then Platinum may negotiate with third parties
        regarding such television program rights, but before Platinum may enter into
        any
        agreement with respect thereto on financial terms which are (on the whole)
        equal
        or less favorable to Platinum than the terms last offered by Dimension, Platinum
        shall inform Dimension in writing of the principal terms of the less favorable
        offer that Platinum is prepared to accept ("Acceptable offer"), and Dimension
        shall have the option ("Acceptable Offer Matching Right") to acquire the
        television program rights which are the subject of said Acceptable Offer
        under
        the same terms and - conditions set forth in the Acceptable Offer (provided
        that
Dimension
        shall not have to match non-financial terms which other third parties cannot
        match), provided that Dimension must notify Platinum in writing of its election
        to exercise such Acceptable Offer Matching Right as aforesaid within five
        (5)
        business days of its receipt of the terms of the applicable Acceptable offer;
        otherwise, Platinum shall be free to accept the Acceptable Offer. In the
        event
        that Platinum does conclude an agreement for the disposition of such television
        program rights with a third party pursuant to the foregoing, such agreement
        must
        provide for an 18 month holdback period on the exploitation of said rights
        commencing from the earlier of (a) the date of the actual initial release
        of the
        Dimension Feature Film (in any medium) and (b) the date which is two (2)
        years
        from the date of the payment by Dimension of the option fee for the applicable
        property hereunder.

      
        

      

              (iii)  all
        half-hour animated television series rights to the properties in the Platinum
        Library are reserved to Platinum, and Platinum shall be free to exploit same
        in
        Platinum's sole discretion without any obligation to Dimension whatsoever.
        All
        other animation rights to any properties purchased by Dimension hereunder
        shall
        be "frozen" and neither party shall have the right to exploit same unless
        the
        parties mutually agree otherwise in writing.

       

              (iv)  the
        novelization rights with respect to any Feature Film produced pursuant hereto
        shall be subject to a first negotiation/first refusal right in favor of
        Dimension on the same terms and conditions as set forth in paragraph C.(ii)
        above.

       

      
        

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

                (v)        If,
          in connection with the development and/or production of a property after
          the
          option and/or acquisition thereof
          by Dimension hereunder, a new character is created by or at
          the
          direction of Dimension and/or any xecutives and/or employees
          of Dimension (as opposed to an "evolution" of an original
          character (or of a group or "race" of characters (e.g., "Klingons")),
          such as a reverse gender or reverse race character or a character that
          is
          created with a reasonably discernable link between the original character
          and
          the evolved character (including,
          without limitation, and for purposes of illustration only, a character
          is
          "aged", is given a new power or ability, is introduced as related to or
          a part
          of a family or recognized group
          or
          race of characters (e.g., "Supergirl", "Batgirl", etc.), the character's
          name
          reuses a name or part of a name such that it appears to be derived from
          or
          connected with the original character
          (e.g., the "Franklin Richards" character, which is introduced
          as the son of Reed and Sue Richards of the "Fantastic Four")), and as opposed
          to
          a character created by or at the direction
          of Platinum and/or any executives and/or employees of Platinum ("New
          Dimension-created Character"), then Dimension shall
          own  the rights to said character (subject to the other terms
          and
          conditions of this agreement), provided that Platinum shall
          have the right to utilize any such New Dimension-created Character(s)
          in connection with its exercise/exploitation of its reserved rights hereunder,
          subject to the following: (i) with respect
          to the merchandising of said character, the terms of paragraph
          9 below shall apply, (ii) with respect to Platinum's exercise
          of reserved publishing rights and interactive rights (including
          video game rights), if the exercise thereof includes said
          New
          Dimension-created Character, Dimension shall be entitled to an amount equal
          to
          ten percent (10%) of all non-refundable, non-returnable
          income received by Platinum from the exploitation of such rights (Platinum
          Publishing/Interactive Gross Receipts), after Platinum's deduction "off-the-top"
          from said Platinum Publishing/Interactive
          Gross Receipts of a 25% distribution fee and
          recoupment of all of Platinum's direct, out-of-pocket costs and
          expenses incurred in connection therewith, and (iii) with respect
          to Platinum's exercise of any other reserved rights to the
          extent such exercise includes said New Dimension-created Character, Dimension
          shall be entitled to an amount equal to ten percent (10%) of all non-refundable,
          non-returnable net income received by Platinum from the exploitation of
          such
          rights (i.e., after recoupment by Platinum of any direct, out-of-pocket
          cost and
          expenses incurred, and/or direct, out-of-pocket investments made, by Platinum
          in
          connection therewith). Further, if and to the extent any new non-character
          elements (such as a setting, a device, etc.) created by or at the direction
          of
          Dimension and/or any executives and/or employees of Dimension (as opposed
          to by
          or at the direction of Platinum and/or any executives and/or employees
          of
          Platinum) have identifiably unique properties or characteristics and names
          (e.g., the "Starship Enterprise," the "neuralizer" used in "Men in Black"),
          then
          such non-character elements shall be treated as a New Dimension-created
          Character for all purposes hereof, provided that new storylines and plots
          created by or at the direction of Dimension and/or any executives and/or
          employees of Dimension shall only receive such treatment if and to the
          extent
          that Platinum's exploitation thereof would otherwise constitute an infringement
          of Dimension's rights under applicable copyright law. For the avoidance
          of
          doubt, for purposes of determining whether a new character or a new non-
          character element has been created by or at the direction of Dimension
          and/or
          any executives and/or employees of Dimension for purposes of this paragraph
          only, the existence of a "work-for- hire" or similar agreement between
          Dimension
          and any writer/creator
          shall not be dispositive, but Platinum shall have the burden of furnishing
          written evidence that such new character or new non-character element was
          created by or at the direction of Platinum and/or executives and/or employees
          of
          Platinum (e.g., correspondence between a Platinum executive and the writer/creator
          in question reflecting Platinum's instructions to said
          writer/creator).

         

                 (vi)           
          Notwithstanding anything to the contrary herein,
          in any and all events, Platinum shall have the right to use the title(s)
          of,
          and/or any logos (other than credit logos) created in connection with,
          any
          Feature Film, in connection with the exploitation of its reserved rights
          hereunder, without any compensation being payable to Dimension
          therefor.

         

      

      D.
        Platinum's Excluded Properties. The following properties and/or rights
        shall not be subject to Dimension's "first look" hereunder:

       

                    (i)        
        any property which Platinum has developed, is developing
        or hereafter develops at its U.S. (currently Beverly Hills) offices,
        specifically including, without limitation, any property created by or with
        Scott Mitchell Rosenberg (e.g., "Cowboy & Aliens", "Ghosting",
        etc.).

       

                    (ii)  any
        rights in any properties previously sold by Platinum to third parties (e.g.,
        if
        Platinum reserved sequel, remake and/or other rights in connection with the
        sale
        of "Cowboys and Aliens", such rights are not subject to the first look
        hereunder).

       

                   
(iii)  any
        property in which Platinum obtains any rights as a result of a pending
        settlement with Crossroads Entertainment (and certain affiliated companies)
        and
        Rob Liefeld and certain affiliated companies.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

                   
(iv)  The
        property currently entitled "Martin Y".

       

              (v)  Up
        to
        eight (8) properties in each of the Initial Term, the Second Term and the
        Third
        Term (all as defined below, and if and to the extent applicable) which Platinum
        may designate, in its sole discretion, as a property to be developed as a
        high-budget motion picture (i.e., with a Platinum proposed production budget
        of
        at least $30 Million Dollars) ("High Budget Project(s)"), provided that Platinum
        shall first present such High Budget Project(s) to Dimension hereunder with
        Platinum's rough budget proposal (which shall be confirmed in writing by
        Platinum promptly after such presentation), and the following shall
        apply:

       

                  (a)  if
        Dimension is not prepared to contractually commit to
        acquiring/developing/producing the applicable High Budget Project in accordance
        with Platinum's budget proposal (or at a higher budget) within the Dimension
        Response Period, then Platinum shall be free to develop, produce and exploit
        said High Budget Project(s) with one or more third parties without any further
        obligation to Dimension whatsoever.

       

                  (b)  if
        Dimension is prepared to contractually
        commit to acquiring/developing/producing the applicable High Budget Project
        in
        accordance with Platinum's budget proposal (or at a higher budget) within
        the
        Dimension Response Period, the parties will negotiate in good faith the terms
        and conditions thereof for a period of- 10 business days (which 10 business
        day
        negotiation period shall commence no later than the last day of the Dimension
        Response Period). If the parties cannot agree on such terms and conditions
        within said 10 business days, then Platinum shall be free to develop, produce
        and exploit said High Budget Project(s) with one or more third parties, provided
        that if Platinum is willing to accept financial terms which on the whole
        are
        equal to or less favorable to Platinum than those last offered by Dimension,
        Platinum shall offer Dimension the right to match such equal or less favorable
        offer.

       

              (vi)                any
        properties acquired by Platinum after the date
        set
        forth above, unless Dimension is prepared to contractually
        commit to develop and produce said properties as an English-language production
        budgeted between $14 and $30 Million and intended for general theatrical
        release
        in the U.S. within the Dimension Response Period and to recognize and comply
        with any applicable third party entitlements or requirements of which Platinum
        has notified Dimension in writing (provided that such properties shall otherwise
        be subject to the terms and conditions of paragraph 1 .B.(i)
        above).

       

      2.
        Term.

       

          A.  One
        year from the date set forth above
        ("Initial Term"). The parties agree that Dimension shall option at least
        one (1) property hereunder
        within the first ninety (90) days of the Initial Term hereunder,
        subject to
        Platinum's making available to Dimension,
        upon
        commencement of the Initial Term hereunder, a minimum
        of ten (10)
        properties which are available for option under the terms
        hereof. If at
        the conclusion of such ninety (90) day period,
        Dimension has
        not optioned a Platinum property hereunder,
        this agreement
        shall be automatically terminated without
        the need for any
        further action on the part of Platinum or Dimension.

       

          B.  In
        the
        event that Dimension shall have either:

          

              (i)  optioned
        three (3) properties from Platinum hereunder during the Initial Term,
        or

              (ii)  commenced
        principal photography (subject to events of force majeure as commonly understood
        in the motion picture industry or cast or director unavailability, but only
        if
        such persons have previously been made "pay-or-play" in writing), and provided
        that commencement of principal photography of any Feature Film shall only
        count
        for purposes hereof if any failure to complete production of the Feature
        Film in
        question is due only to events beyond the reasonable control of Dimension,
        of at
        least one Feature Film based on a purchased property hereunder during the
        Initial Term, then the Initial Term shall automatically
        be extended for an additional and consecutive twelve (12) month period ("Second
        Term") under the same terms and conditions hereof. If the requirements for
        such
        automatic extension of the Initial Term are not fully satisfied, then this
        agreement shall automatically expire at the end of the Initial Term without
        the
        need for any further action on the part of Platinum or Dimension, provided
        that
        any payments accrued and not yet paid in full to Platinum hereunder shall
        remain
        payable by Dimension. In the event that this agreement is extended for such
        Second Term, but Dimension fails to option at least one (1) Platinum property
        hereunder within the first ninety (90) days of such Second Term, then this
        agreement shall be automatically terminated without the need for any further
        action on the part of Platinum or Dimension, provided that any payments accrued
        and not yet
        paid in full to Platinum hereunder
        shall remain payable by Dimension.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

          C.             In
        the event that Dimension shall have (a) commenced
        principal photography during the Second Term (subject to events of force
        majeure
        as commonly understood in the motion picture industry or cast or director
        unavailability, but only if such persons have previously been made "pay-or-play"
        in writing, and provided that commencement of principal photography of any
        Feature Film shall only count for purposes hereof if any failure to complete
        production of the film Feature Film in question is due
        only
        to events beyond the reasonable control of Dimension, of at least two (2)
        Feature Films based on properties purchased hereunder, and (b) theatrically
        released during the Initial Term and/or Second Term at least two (2) Feature
        Films produced under this agreement on a minimum of twenty-five (25) screens
        (for each such Feature Film) with respect to a foreign-language Feature Film,
        and on a minimum of two hundred (200) screens in the United States with respect
        to an English-language Feature Film, then the Second Term shall automatically
        be
        extended for an additional and consecutive twelve (12) month period ("Third
        Term") under the same terms and conditions hereof. If the requirements for
        such
        automatic extension of the Second Term are not fully satisfied, then this
        agreement shall automatically expire at the end of the Second Term without
        the
        need for any further action on the part of Platinum or Dimension, provided
        that
        any payments accrued and not yet paid in full to Platinum hereunder shall
        remain
        payable by Dimension. In the event that this agreement is extended for such
        Third Term, but Dimension fails to option at least one (1) Platinum property
        hereunder within the first ninety (90) days of such Third Term, then this
        agreement shall be automatically terminated without the need for any further
        action on the part of Platinum or Dimension, provided that any payments accrued
        and not yet paid in full to Platinum hereunder shall remain payable by
        Dimension. The Initial Term, if and to the extent extended to a Second Term
        and
        a Third Term as provided herein, is sometimes referred to herein as the
        "Term".

       

      3. Overhead
        and
        Development Funds.

       

          A.  During
        the Initial Term, Dimension
        shall provide Platinum with a non-accountable, non-recoupable (except as
        provided in paragraphs 3.C and 5.A below) development fund ("Development
        Fund")
        of $150,000. The Development Fund shall be payable to Platinum in equal monthly
        installments, subject to the terms of paragraph 2 above. Platinum shall have
        the
        right to expend the Development Fund in connection with the acquisition and
        development of properties as Platinum shall determine in its sole
        discretion.

       

          B.  During
        the Initial Term, Dimension shall provide Platinum with a non-accountable,
        non-recoupable (except as provided
        in paragraph 3 .C below) contribution to Platinum's general overhead expenses
        ("Overhead Fund") of $250,000. The Overhead Fund shall be payable in equal
        monthly installments (subject to the terms of paragraph 2 above), and shall
        be
        expended by Platinum in its sole discretion, provided that expenditures incurred
        by Platinum in connection with any specific property after Dimension has
        optioned same hereunder shall be reimbursed by Dimension to Platinum upon
        submission of Platinum's invoices and accompanying "back-up" documentation
        therefor and are not intended to be included in said overhead Fund.

       

          C.            Notwithstanding
        that the Development and Overhead Funds
        are
        not recoupable from any financial entitlements of Platinum hereunder, Dimension
        shall have the right to include 100% thereof in the Negative Cost of the
        first
        Feature Film produced pursuant hereto, and thereafter shall apportion such
        Development and Overhead Funds equally among the Negative Cost of all Feature
        Films produced pursuant hereto (e.g., if two such Feature Films are produced,
        then 50% thereof shall be included in the Negative Cost of each such Feature
        Film, and so on).

       

      4.            Option/Purchase
        Prices.

       

          A.            In
        consideration for a two (2) year option to acquire
        the Rights to each property which Dimension elects to option in the Initial
        Term
        hereunder, the option fee shall be $300,000, payable upon execution of a
        mutually approved short- form-option agreement and Dimension's approval of
        chain
        of title (provided
        that   (a)
        such approval may not be unreasonably withheld,    (b)
        if no written objection thereto is furnished by Dimension
        to Platinum within seven (7) business days of Platinum's submission thereof
        to a
        Dimension business affairs executive, said chain of title shall be deemed
        accepted by Dimension for all purposes hereof, and (c) if any such written
        objection is so timely furnished by Dimension and Platinum shall not be able
        to
        cure the deficiency specified by Dimension to Dimension's reasonable
        satisfaction within fifteen (15) business days of Platinum's receipt of said
        notice, Platinum shall have the right to exclude said property front this
        agreement and to offer same to third parties, provided that (i) Platinum must first
        notify
        Dimension in writing of its intent to do so, and Dimension shall have a three
        (3) business day period from its receipt of said notification to accept said
        chain of title for purposes hereof and to pay the applicable option fee,
        and
        (ii) if the chain of title that Platinum intends to submit to a third party
        is
        materially different from that previously submitted to Dimension, Platinum
        must
        first submit the materially different chain of title to Dimension, which
        submission shall be treated in the same manner as an initial submission of
        chain
        of title and all of the foregoing provisions shall apply with respect to
        such
        second submission, except that Dimension shall only have five (5) business
        days
        to review same). The applicable option fee for the
        Rights to properties optioned in the Second Term if any, of the
        agreement shall be $400,000 and the option fee for properties optioned in
        the
        Third Term, if any, of the agreement shall be $550,000 (all payable as provided
        above).

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

          B.             In
        consideration for the acquisition of the Rights to
        each
        property which Dimension elects to purchase hereunder, Platinum shall be
        paid an
        amount equal to five percent (5%) of the amount by which such Feature Film's
        final direct negative cost (excluding only overhead, third party bond fees
        (if
        any), unspent contingency and direct, out-of-pocket financing costs, but
        inclusive of any fixed, as opposed to contingent, deferments) ("Negative
        Cost"),
        as certified to Platinum by the completion guarantor for the applicable Feature
        Film, or if there is no such Guarantor, by an appropriate executive of Dimension
        (provided that in all events Platinum shall have customary audit rights with
        respect to such Negative Cost) exceeds $2,000,000 (no cap shall exist with
        respect to the foregoing), which amount shall be payable to Platinum as
        follows:

       

              (i)  one
        half
        of said sum shall be calculated based on the "all-in" final production budget
        ("Budget") approved by Dimension for such Feature Film (which Budget shall
        be
        furnished to Platinum no later than upon commencement of principal photography
        thereof), and paid to Platinum no later than upon commencement of principal
        photography of said Feature Film, and the Rights to the applicable property
        shall then vest with Dimension only upon the payment to Platinum of such
        amount,
        and

       

              (ii)  the
        balance of said sum shall be calculated based on the Negative Cost and paid
        to
        Platinum within fifteen (15) business days of Platinum's receipt of the Negative
        Cost certification for such Feature Film, which certification shall be provided
        to Platinum within thirty (30) days of complete. delivery to Dimension of
        said
        Feature Film, and in any and all events such certification must be provided
        and
        the applicable payment made to Platinum prior to the earlier of (a) the date
        of
        the initial release or screening of such Feature Film (including in film
        festivals and press screenings) in any media, and (b) the date which is the
        two
        year anniversary of the commencement of principal photography of such Feature
        Film.

       

          C.             The
        option fees with respect to the Rights to any Feature
        Film sequels, prequels and/or remakes to any of the properties purchased
        hereunder shall be 150% of the applicable option fees payable for the original
        property, which option fees shall be payable to Platinum no later than
        commencement of principal photography of the sequel, prequel and/or remake
        in
        question, subject to paragraph 5.B below. The purchase price for the Rights
        to
        such Feature Film sequels, prequels and/or remakes shall be calculated and
        paid
        in the same manner as the purchase

      price
        for
        the first Feature Film as provided in paragraph 4.B above.

       

      5.
        Reversion.

       

          A.  In
        the
        event that Dimension has optioned a Platinum property hereunder and not
        commenced principal photography of a Feature Film based thereon within the
        two
        (2) year period following the option thereof (subject to events of force
        maj
        eure as commonly understood in the motion picture industry or cast or director
        unavailability, but only if such persons have previously been made "pay-or-play"
        in writing, and provided, however, that commencement of principal photography
        of
        any Feature Film shall only count for purposes hereof if any failure to complete
        production of the Feature Film in question is due only to events beyond the
        reasonable control of Dimension), then the Rights to such property shall
        revert
        to Platinum, subject to a lien in Dimension's favor in an amount equal to
        that
        portion of the Development Fund (if any) which was used by Platinum to
        acquire/develop the property in question, plus interest thereon in the amount
        of
        prime plus 1 %, to be repaid to Dimension upon set-up elsewhere, but in no
        event
        later than commencement of principal photography of any production based
        on such
        property set up elsewhere by Platinum. The amount reimbursable to Dimension
        pursuant to the foregoing shall also be subject to increase if and to the
        extent
        that Platinum also wishes to acquire the rights to any materials created
        by
        Dimension in connection with Dimension's development of such property, by
        an
        amount equal to Dimension's direct, out-of-pocket development costs incurred
        in
        connection with the creation of such materials plus interest thereon in the
        amount of prime plus 1% (to be repaid on the same basis as provided in the
        foregoing sentence).

       

          B.  dimension’s
        right to produce a Feature Film sequel (or prequel) and/or remake to any
        Feature
        Film produced pursuant hereto will revert to Platinum with no further obligation
        to Dimension if Dimension has not paid the option fee set forth above for
        such
        Feature Film sequel (or prequel) Rights within the time period ending on
        the
        earlier of (i) the date which is six (6) months after the date of the initial
        release of the prior Feature Film upon which such sequel, prequel or remake
        is
        to be based ("Prior Feature Film") in any media, and (ii) the date which
        is
        eighteen (18) months after the start of principal photography of such Prior
        Feature Film. Once the Rights to any such Feature Film sequel, prequel and/or
        remake have been so optioned, if Dimension has not commenced principal
        photography of a Feature Film based thereon within the two (2) year period
        following such option (subject to events of force majeure as commonly understood
        in the motion picture industry or cast or director unavailability, but only
        if
        such persons have previously been made "pay-or-play" in writing, and provided,
        however, that commencement
        of principal photography of any Feature Film shall only count for purposes
        hereof if any failure to complete production of the Feature Film in question
        is
        due only to events beyond the reasonable control of Dimension), then such
        Rights
        shall revert to Platinum, subject to the lien described in paragraph 5 .A
        above.
        For the avoidance of doubt, if such sequel, prequel and/or remake rights
        revert
        to Platinum as provided for herein, this shall mean that all rights in and
        to
        all elements (including, without limitation, characters, settings, devices,
        titles, etc.) of the Prior Feature Film(s) produced by (or on behalf of)
        Dimension shall revert to Platinum and Platinum shall have the right to exploit
        same without any further obligation to Dimension and Dimension shall no longer
        have any interest in said rights except in connection with Dimension's
        continuing exploitation of its Rights to such theretofore produced Feature
        Films.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      6.
        Additional Compensation. With
        respect to each Feature Film produced pursuant hereto, the following
        additional compensation shall be paid to Platinum or Scott Mitchell Rosenberg,
        as applicable:

       

          A.
        Platinum.

       

              (i)              Contingent
        compensation in an amount equal to ten
        percent (10%) of adjusted gross receipts received by or credited to Dimension
        from the exploitation of such Feature Film in any and all media and any sequels
        and prequels thereto (not cross-collateralized among any such Feature Films),
        with such adjusted gross receipts to be defined, calculated, accounted for
        and
        paid pursuant to a definition to be negotiated in good faith between the
        parties
        ("AGR"), from all sources throughout the world after "cash breakeven" (as
        such
        term is customarily understood in the motion picture industry) with an
“across-the- percent (12.5%) of AGR after "cash breakeven" with an "across-
        the-board" 25% distribution fee, and escalating further to fifteen percent
        (15%)
        of AGR at "initial actual breakeven" (as such term is customarily understood
        in
        the motion picture industry), provided that video receipts shall be calculated
        as follows:

       

                  (a)  on
        the
        basis of a 25% royalty for rental sales and 12-1/2% for sell-through sales
        (it
        being agreed that video royalties shall be based on the wholesale price and
        no
        distribution fee or costs or expenses shall be deductible therefrom);
        and/or

       

                  (b)  in
        the
        event that video exploitation is done on a "rentrak" or other rental revenue
        sharing basis, then 25% of Dimension's gross receipts therefrom (without
        any fees or costs whatsoever being deductible) shall also be included in
        gross
        receipts.

       

              (ii)                In
        connection with each Feature Film produced pursuant
        hereto, Platinum shall receive the following bonus payments, if any, which
        bonus
        payments shall be applicable against the Contingent Compensation payable
        pursuant to subparagraph 6.A(i) above:

       

                  (a)  With
        respect to a U.S. Feature Film (as defined below), bonus payments of (a)
        $100,000 if and when cumulative box office for the U.S. territory as reported
        by
        EDI reaches Fifty Million Dollars, (b) $100,000 if and when cumulative box
        office for the rest of the world exclusive of the U.S. territory (the "Foreign
        Territory") as reported by EDI, if readily available (or if such EDI statistics
        are not readily available, then as reported by Daily Variety), reaches Fifty
        Million Dollars, (c) $250,000 if and when cumulative box office for the U.S.
        territory as reported by EDI reaches Seventy-Five Million Dollars, (d) $150,000
        if and
        when cumulative box office for the Foreign Territory as reported by EDI,
        if readily available (or if such EDI statistics are not readily available,
        then
        as reported by Daily Variety), reaches Seventy-Five Million Dollars, (e)
        $250,000 if and when cumulative box office for the U.S. territory as reported
        by
        EDI reaches one Hundred Million Dollars and (f) $250,000 if and when cumulative
        box office for the Foreign Territory as reported by EDI, if readily available
        (or if such EDI statistics are not readily available, then as reported by
        Daily
        Variety), reaches one Hundred Million Dollars.

       

                  (b)  With
        respect to a Foreign Feature Film (as defined below), bonus payments of $100,000
        each if and when (a) cumulative box office for the Foreign Territory as reported
        by EDI, if readily available (or if such EDI statistics are not readily
        available, then as reported by Daily Variety),reaches an amount equal to
        four
        (4) times the Negative Cost of such Feature Film, (b) cumulative box office
        for
        the U.S. territory as reported by EDI reaches an amount equal to four (4)
        times
        the aggregate of (i) the direct, out-of-pocket print and advertising costs
        (if
        any) incurred by Dimension solely for the purposes of distributing such Foreign
        Feature Film in the U.S. territory, plus (ii) any direct, out-of-pocket dubbing,
        voice-over and/or subtitling costs (if any) incurred by Dimension solely
        for the
        purpose of distributing such Foreign Feature Film in the U.S. territory,
        plus
        (iii) any direct, out-of-pocket production costs (if any) incurred by Dimension
        solely for the purpose of distributing such Foreign Feature Film in the U.S.
        territory, but only to the extent such production costs are in addition to,
        and
        do not constitute part of, the Negative Cost of such Foreign Feature Film
        ( (i)
        , (ii) and (iii) being collectively referred to hereinafter as "FFF U.S.
        Distribution Costs"), (c) cumulative box office for the Foreign, Territory
        as
        reported by EDI, if readily during
        pre-production of the applicable Feature Film and ninety percent (90%) thereof
        on a weekly basis during principal photography of the applicable Feature
        Film
        (provided that such amounts shall be deemed to constitute an advance against
        a
        customary 20/60/10/10 payment schedule)'. To-the extent that the Negative
        Cost
        of such Feature Film is greater than the Budget, the payment of the balance
        of
        such executive producer/producer fee shall be paid to Platinum pursuant to
        the
        terms of paragraph 4.B.
        (ii)
        above (i.e., within fifteen (15) business days of Platinum's receipt of the
        Negative Cost certification for the applicable Feature Film). producer/producer
        fee payable as provided in subparagraph B.(i) available
        (or if such EDI statistics are not readily available, then as reported by
        Daily
        Variety), reaches an amount equal to five (5) times the Negative Cost of
        such
        Feature Film, (d) cumulative
        box office for the U.S. as reported by EDI reaches an amount equal to five
        (5)
        times the FFF U.S. Distribution Costs for such Feature Film, (e) cumulative
        box
        office for the Foreign Territory as reported by EDI, if readily available
        (or if
        such EDI statistics are not readily available, then as reported by Daily
        Variety), reaches an amount equal to five and one-half (5.5)
        times the Negative Cost of such
        Feature Film, and (f) cumulative box office for the U. S. as reported by
        EDI reaches an amount equal to five and one-half (5.5) times the FFF U.S.
        Distribution Costs for such Feature Film.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

                  (c)             With
        respect to all Feature Films, Dimension
        shall furnish the EDI and Daily Variety box office reports to Platinum via
        telecopier within three (3) business days of Dimension's receipt of
        same.

       

          B. Scott
        Mitchell Rosenberg.

      
         

                (i)             Scott
          Mitchell Rosenberg shall be entitled to an
          executive producer/producer fee in an amount equal to five percent
          (5%) of such Feature Film's Negative Cost (as certified and
          subject to Platinum's audit rights as provided above), with a compensation
          floor of $300,000 and a ceiling of $750,000, provided
          that if the Budget for the Feature Film exceeds $30 Million,
          then said ceiling shall be the greater of (a) $750,000  and
          (b)
          an amount equal to Scott Mitchell Rosenberg's then- prevailing
          producer fee "quote" (as such term is commonly understood
          in the U.S. motion picture industry). Said fee shall be
          initially calculated based on the Budget of the applicable Feature
          Film, and, based on such initial calculation, such amount shall
          be
          payable ten percent (10%) thereof on a weekly basis during
          pre-production of the applicable Feature Film and ninety percent    (90%)
          thereof on a weekly basis during principal photography
          of the applicable Feature Film    (provided that such
          amounts shall be deemed to constitute an advance against a customary
          20/60/10/10 payment schedule)'. To-the extent that the Negative Cost of
          such
          Feature Film is greater than the Budget, the payment of the balance of
          such
          executive producer/producer fee shall be paid to Platinum pursuant to the
          terms
          of paragraph 4.B.   (ii)
          above (i.e., within fifteen (15) business days of Platinum's
          receipt of the Negative Cost certification for the applicable Feature
          Film).

         

                (ii)               Scott
          Mitchell Rosenberg shall also be paid an executive producer/producer development
          fee ("Development Fee"), concurrently with the payment of the option fee
          for a
          Feature Film as provided in paragraph 4.A above, which Development
          Fee shall be applicable against the executive producer/producer
          fee payable as provided in subparagraph B.(i)  above,
          in
          an amount equal to $12,500 with respect to the fourth Feature Film produced
          pursuant hereto, and in an amount equal to $25,000 with respect to the
          fifth
          such Feature Film and all Feature
          Films thereafter produced pursuant hereto.

         

      

      7.              Minimum
        Budget. With respect to properties acquired by Dimension hereunder, if
        Dimension produces an English-language Feature Film based thereon (except
        for an
        English-language production which takes place in the United Kingdom with
        predominantly U.K. actors) ("U.S. Feature Film"), the Budget must be at least
        $14 Million. If Dimension produces a foreign-language Feature Film based
        thereon, or, an English-language Feature Film which takes place in the United
        Kingdom with predominantly U.K. actors ("Foreign Feature Film"), there shall
        be
        no minimum production budget. Dimension acknowledges that the foregoing is
        of
        the essence and a material term of this agreement.

       

      8.              Credits.
        With respect to each Feature Film produced by Dimension pursuant hereto,
        Platinum and Scott Mitchell Rosenberg (as applicable) shall be accorded and
        entitled to the following credits:

       

          A.  Scott
        Mitchell Rosenberg will receive, at his option, a shared Executive Producer
        or
        Producer credit. In addition, Platinum can elect to receive up to two more
        (shared) co-producer credits for 1-2 Platinum executives, at Platinum's sole
        discretion, provided that if Scott Mitchell Rosenberg and/or Platinum is
        obligated to accord any such executive an executive producer or producer
        credit
        with respect to a particular project, one of such additional credits shall
        be a
        (shared) executive producer or producer credit, provided that Platinum has
        notified Dimension in writing of such requirement by no later than concurrently
        with the submission to Dimension of the chain-of- title for such
        project.

       

          B.  Platinum
        shall be entitled to a Platinum Studios Production Company credit, immediately
        following the presentation credit, a Platinum Studios logo credit and a "Based
        upon a Platinum Studios Comic" or similar mutually agreeable corporate
        credit.

       

          C.           Dimension
        shall comply with all reasonable credit obligations
        incurred by Platinum to third parties in connection with Platinum's acquisition
        of the applicable property and furnished to Dimension in writing, provided
        that
        no such credit obligations shall require a credit above or more prominent
        than
        the Miramax presentation and/or production credit. The
        above
        credits will be accorded in all on-screen credits in the main titles on a
        separate card no less prominent than any other Producer, Executive Producer
        and/or Production Company credits, and in all paid advertising and publicity
        issued (or controlled)
        by Dimension or any of the Feature Film's distributors.
        Platinum and Dimension shall mutually approve, provided that in the event
        of any
        disagreement the decision of Dimension shall control, (a) any other Production
        Company credit, and (b) if Dimension wishes to accord more than one other
        Executive Producer and/or Producer credits, such additional Executive Producer
        and/or Producer credits.

       

      9.
Merchandising,
        Soundtrack Screenplay
        and Music  Publishing, Commercial
        Tie-Ups.

       

          A.  Any
        and
        all revenues derived from exploitation of merchandising, music publishing
        and/or
        soundtrack rights to a Feature Film produced by Dimension hereunder shall
        be
        accounted for separately with no cross-collateralization. With respect to
        the
        exploitation of such merchandising rights, Platinum shall control and administer
        same and Platinum shall be entitled to a 25% distribution fee and the right
        to
        recoup all out=of-pocket costs and fees; thereafter, the balance, if any,
        shall
        be split 50/50 between the
        parties hereto. With respect to the exploitation of such soundtrack
        rights, which Dimension shall control and administer, Platinum shall be paid
        a
        direct "separate pot" royalty equal to 5% of the suggested retail list price
        for
        worldwide sales of such album in all channels of distribution calculated
        with
        respect to all income from record one (1) but payable after Dimension recoups
        all direct out-of-pocket producing and marketing costs and expenses (excluding
        overhead) paid to unaffiliated third parties directly in connection with
        the
        exploitation of such soundtrack rights (as opposed to in connection with
        the
        applicable Feature Film associated with said soundtrack). With respect to
        the
        exploitation of such music publishing rights, which Dimension shall control
        and
        administer, Platinum shall be paid a direct "separate pot" royalty equal
        to 5%
        of the net amounts payable to Dimension from the exploitation thereof. With
        respect to the exploitation of screenplay publishing rights, which Dimension
        shall control and administer, Platinum shall be paid a direct "separate pot"
        royalty equal to 7% of the suggested retail price of published screenplays.
        The
        parties shall negotiate in good faith the terms of their respective
        participation in the revenues derived from commercial tie-ups.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

          B.  Platinum's
        logo and/or trademark (collectively, the "Mark(s)") shall appear on the outside
        packaging of all phonorecords (and tapes) in all configurations now known
        or
        hereafter devised, in all advertisements, on all marketing and promotional
        materials, and wherever the logo and/or trademark of the record distributor
        appears (it being acknowledged that if the approved billing block for the
        Feature Film is utilized, this shall suffice in respect of the foregoing).
        The
        Mark(s) shall be in the same size and prominence as any other logo and/or
        trademark. Platinum shall have the right to accord a shared executive
        producer credit to such individual as Platinum may designate. Such credit
        shall
        appear on the outside packaging of all phonorecords (and tapes) in all
        configurations known or hereafter
        devised and in all advertisements where any other executive producer credit
        appears. Such credit shall be in the same size, typestyle and prominence
        as the
        credit accorded to any executive producer in connection with such
        phonorecords.

       

      10.              Platinum
        Participation in Production. Platinum shall have
        mutual approval with Dimension of the final screenplay for any Feature Film
        (including sequels, prequels and remakes thereof), provided that as between
        Platinum and Dimension, Dimension's decisions shall control in the event
        of a
        disagreement, provided further, however, that Dimension agrees to comply
        with
        and be subject to any consultation and/or approval rights and procedures
        in
        favor of third parties of which Dimension has been notified in writing by
        Platinum concurrently with Platinum's submission to Dimension of the chain
        of
        title for such project. Platinum shall also have the right to approve of
        any
        third party profit participations accorded in connection with any Feature
        Film
        if and to the extent any such participations would dilute Platinum's profit
        participation hereunder. Dimension shall meaningfully consult with Platinum
        with
        respect to the budget, cast, director and final cut of each Feature Film
        (including sequels, prequels and remakes thereof). Platinum shall have the
        right
        (but not the obligation) to have a representative present at all reasonable
        times during all production and post-production activities (including, without
        limitation, on the set) for any Feature Film, at Dimension's cost, provided
        that
        the expenses for travel and accommodations and the per diem (and any other
        perquisites) to be furnished by Dimension to accommodate such presence are
        appropriate under the circumstances taking into account the Budget for the
        applicable Feature Film, provided that if the Budget for a Feature Film is
        equal
        to or exceeds $14 Million, then Platinum and Scott Mitchell Rosenberg shall
        be
        accorded Dimension's "first-class" treatment with respect to such presence,
        and
        provided further, that in all events, regardless of the Budget for the Feature
        Film, Platinum and Scott Mitchell Rosenberg shall be treated no less favorably
        than the most favorable treatment accorded any other person attached to such
        Feature Film in this regard. Platinum shall also have the right to have a
        representative present when and where rough cut sequences and dailies of
        any
        Feature Film are being shown, provided that to the extent any such rough
        cut
        sequences and/or dailies of the Picture are being separately circulated to
        any
        other persons for viewing, Platinum shall be separately sent a copy thereof
        for
        viewing at its offices. Platinum shall be added as an additional named insured
        on Dimension's commercial liability, production package and errors and omissions
        insurance policies for each Feature Film. Platinum shall be provided with
        a
        minimum of three (3) complimentary videocassette copies of each Feature Film
        produced pursuant hereto
        no
        later than when such Feature Film becomes generally commercially available
        on
        video, and shall have the right to purchase additional copies from Dimension
        at
        Dimension's cost (so long as such purchases thereof are not for further sale
        by
        Platinum). Platinum shall be provided with at least ten (10) invitations to any
        premieres of any Feature Film and/or screenings at film festivals where any
        such
        Feature Film is included, together with first-class travel and accommodations
        packages for three (3) persons (if available and used).

       

      11.                Representations
        and Warranties. Each party hereby represents
        and warrants to the other as follows:  (a)
        it has all necessary
        authority to make this agreement, upon its execution, the valid, binding
        and
        enforceable obligation of such party; (b) no consent, waiver or approval
        of any
        third party is necessary to its entering into and performance of this agreement
        or the consummation of the transactions contemplated hereby; and (c) this
        agreement, when duly executed, will constitute legal, valid and binding
        obligations of such party, enforceable against such party in accordance with
        the
        terms hereof (subject to equitable remedies and applicable bankruptcy,
        insolvency, fraudulent conveyance, reorganization or other similar laws
        affecting creditors' rights generally).

       

      12.                Confidentiality.
        Neither party shall disclose the existence or terms and conditions hereof
        to
        any third parties except (a) to the extent same has become public knowledge
        other than as a result of a disclosure in violation of this agreement, (b)
        to
        their respective attorneys, accountants or other financial advisors (who
        shall
        also be required to observe such confidentiality
        requirements), (c) as required (in the opinion of such counsel, accountants
        or
        other financial advisors) by applicable law, or legal, regulatory, governmental
        or similar process,    (d)
        to the extent reasonably necessary to enforce such de party’s
        rights hereunder and/or (e) pursuant to one or more mutually approved press
        release(s); provided, however, that each party
        shall also have the right to disclose its executive producer and/or producer
        fees hereunder to third parties for purposes of confirming and/or establishing
        "quotes" (as such term is customarily understood in the motion picture
        industry).

       

      13.            Notices.
        All notices which either party wishes to serve
        on the other shall be in writing,
        addressed as follows: to Platinum, Platinum Studios, LLC, 9744 Wilshire
        Boulevard, Suite 400,
        Beverly Hills, California 90212,
        Telecopier      (310)276-2799, Attention:
        Mr. Scott Rosenberg, with copies to Loeb &Loeb LLP,  10100
        Santa Monica Boulevard, Suite 2200, Los
        Angeles,California  90067,Telecopier (310) 282-2192, Attention:
        Stephen Saltzman,  Esq., and to William Morris Agency, Inc.,
        151 William Morris  Drive, Beverly Hills, California 90212,
        Telecopier (310) 859-  4250, Attention Mr. Paul Bricault; to
        Dimension, 375 Greenwich  Street, New York, NY 10013,
        Telecopier (212) 941-2015, Attention

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

       

      Mr.
        Cary
        Granat; and 11 Beach Street, 5th Floor,
        New York,
        NY 10013, Telecopier (212) 219-4128, Attention: Mr. Brian Burkin. All notices
        may only be served by one of the following methods: personally, by certified
        or
        registered mail (return receipt requested), courier service, telegraph,
        facsimile or cable. Either party may designate a substitute address by written
        notice to the other. The date which is one (1) day following personal delivery,
        the date which is five (5) days after the deposit of such notice in the mail,
        the date which is one (1) business day after delivery thereof to be telegraph
        or
        cable office, the date which is one (1) business day after sending by facsimile
        (provided there is an electronic answerback confirmation of even date) or
        the
        date which is two (2) business days after delivery to a courier service,
        shall
        be deemed the date of service of any notice from either party to the other
        party.

       

      14.
        Governing Law; Forum; Dispute Resolution. This agreement shall be governed
        by
        the laws of the State of California applicable to agreements executed and
        wholly
        to be performed therein. The forum for the resolution of any dispute related
        to
        this agreement shall be the federal and state courts located in Los Angeles,
        California and the parties hereby submit to the in personam jurisdiction
        of said
        courts and hereby waive any claim that such courts are an improper venue
        or an
        inconvenient forum. In the event of a material breach by either party of
        its
        obligations hereunder, the other shall have the right to terminate this
        agreement and seek damages resulting from such breach, provided that if such
        breach is a failure by Dimension to pay monies when due hereunder, Platinum
        shall only have the right to terminate the agreement if Dimension has failed
        to
        cure such breach within five (5) business days of its receipt of written
        notice
        from Platinum of such payment default, provided further that in no event
        shall
        Platinum have the right to injunctive relief with respect to the exploitation
        of
        any Feature Film produced pursuant hereto. The prevailing party in any legal
        proceeding of any type related to this agreement shall receive, in addition
        to
        any other recovery, its actual attorneys’ fees and costs.

       

      
        	 MIRAMAX
                FILM CORP. 	 	 	 PLATINUM
                STUDIOS, LLC	 
	 	 	 	 	 
	 	 	 	 	 
	
                By: 
/s/
                  Cary
                  Granat                                                                    

              	 	 	
                By
                  : /s/ 
                  Scott Rosenberg

              	 
	
                Its:
                  President  

              	 	 	
                Its:
                  Chairman

              	 
	
                 

              	 	 	
                 

              	 

      

       

       

      
        
          
          

        

        
          11EX-10.1 Cuisine Solutions, Inc. 2007 Equity Incentive Plan

CUISINE SOLUTIONS, INC.

2007 EQUITY INCENTIVE PLAN

APPROVED BY BOARD:  AUGUST 3, 2007

APPROVED BY STOCKHOLDERS: OCTOBER 25, 2007  

TERMINATION DATE:  AUGUST 2, 2017

1.   GENERAL.

(a)   Eligible Award Recipients.   The persons eligible to receive Awards are Employees, Directors and Consultants.

(b)   Available Awards.   The Plan provides for the grant of the following Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) Restricted Stock Awards, (iv) Restricted Stock Unit Awards, (v) Stock Appreciation Rights, (vi) Performance Stock Awards, and (vii) Other Stock Awards.

(c)   General Purpose.   The Company, by means of the Plan, seeks to secure and retain the services of the group of persons eligible to receive Awards as set forth in Section 1(a), to provide incentives for such persons to exert maximum efforts for the success of the Company and any Affiliate and to provide a means by which such eligible recipients may be given an opportunity to benefit from increases in value of the Common Stock through the granting of Stock Awards.

2.   ADMINISTRATION.

(a)   Administration by Board.   The Board shall administer the Plan unless and until the Board delegates administration of the Plan to a Committee or Committees, as provided in Section 2(c).

(b)   Powers of Board.   The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan:

(i)    To determine from time to time (A) which of the persons eligible under the Plan shall be granted Awards; (B) when and how each Award shall be granted; (C) what type or combination of types of Award shall be granted; (D) the provisions of each Award granted (which need not be identical), including the time or times when a person shall be permitted to receive cash or Common Stock pursuant to a Stock Award; and (E) the number of shares of Common Stock with respect to which a Stock Award shall be granted to each such person.

(ii)   To construe and interpret the Plan and Awards, and to establish, amend and revoke rules and regulations for the Plan’s administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement in a manner and to the extent it shall deem necessary or expedient to make the Plan or Award fully effective.

(iii)  To settle all controversies regarding the Plan and Awards.

(iv)  To accelerate the time at which a Stock Award may first be exercised or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Award stating the time at which it may first be exercised or the time during which it will vest.

(v)    To suspend or terminate the Plan at any time. Suspension or termination of the Plan shall not impair rights and obligations under any Stock Award granted while the Plan is in effect except with the written consent of the affected Participant.

(vi)  To amend the Plan in any respect the Board deems necessary or advisable, including, without limitation, relating to Incentive Stock Options and certain nonqualified deferred compensation under Section 409A of the Code and to bring the Plan and/or Stock Awards into compliance therewith, subject to the limitations, if any, of applicable law. However, except as provided in Section 9(a) relating to Capitalization Adjustments, stockholder approval shall be required for any amendment of the Plan that either (A) materially increases the number of shares of Common Stock available for issuance under the Plan, (B) materially expands the class of individuals eligible to receive Awards under the Plan, (C) materially increases the benefits accruing to Participants under the Plan or materially reduces the price at which shares of Common Stock may be issued or purchased under the Plan, (D) materially extends the term of the Plan, or (E) expands the types of Awards available for issuance under the Plan, but only to the extent required by applicable law or listing requirements. Except as provided above, rights under any Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (1) the Company requests the consent of the affected Participant, and (2) such Participant consents in writing.

(vii) To submit any amendment to the Plan for stockholder approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of (A) Section 162(m) of the Code and the regulations thereunder regarding the exclusion of performance-based compensation from the limit on corporate deductibility of compensation paid to Covered Employees, (B) Section 422 of the Code regarding “incentive stock options” or (C) Rule 16b-3.

(viii)     To approve forms of Award Agreements for use under the Plan and to amend the terms of any one or more Awards, including, but not limited to, amendments to provide terms more favorable to the Participant than previously provided in the Award Agreement, subject to any specified limits in the Plan that are not subject to Board discretion; provided however, that the Participant’s rights under any Award shall not be impaired by any such amendment unless (A) the Company requests the consent of the affected Participant, and (B) such Participant consents in writing. Notwithstanding the foregoing, subject to the limitations of applicable law, if any, and without the affected Participant’s consent, the Board may amend the terms of any one or more Awards if necessary to maintain the qualified status of the Award as an Incentive Stock Option or to bring the Award into compliance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued or amended after the Effective Date.

(ix)  Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company and that are not in conflict with the provisions of the Plan or Awards.

(x)    To adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Employees, Directors or Consultants who are foreign nationals or employed outside the United States.

(xi)  To effect, at any time and from time to time, with the consent of any adversely affected Optionholder, (A) the reduction of the exercise price of any outstanding Option under the Plan; (B) the cancellation of any outstanding Option under the Plan and the grant in substitution therefor of (1) a new Option under the Plan or another equity plan of the Company covering the same or a different number of shares of Common Stock, (2) a Restricted Stock Award (including a stock bonus), (3) a Stock Appreciation Right, (4) Restricted Stock Unit, (5) an Other Stock Award, (6) cash and/or (7) other valuable consideration (as determined by the Board, in its sole discretion); or (C) any other action that is treated as a repricing under generally accepted accounting principles.

(c)   Delegation to Committee.

(i)    General.   The Board may delegate some or all of the administration of the Plan to a Committee or Committees. If administration of the Plan is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board that have been delegated to the Committee, including the power to delegate to a subcommittee of the Committee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may retain the authority to concurrently administer the Plan with the Committee and may, at any time, revest in the Board some or all of the powers previously delegated to the Committee, Committees, subcommittee or subcommittees.

(ii)   Section 162(m) and Rule 16b-3 Compliance.   In the sole discretion of the Board, the Committee may consist solely of two (2) or more Outside Directors, in accordance with Section 162(m) of the Code, or solely of two (2) or more Non-Employee Directors, in accordance with Rule 16b-3. In addition, the Board or the Committee, in its sole discretion, may (A) delegate to a Committee which need not consist of Outside Directors the authority to grant Awards to eligible persons who are either (1) not then Covered Employees and are not expected to be Covered Employees at the time of recognition of income resulting from such Stock Award, or (2) not persons with respect to whom the Company wishes to comply with Section 162(m) of the Code, or (B) delegate to a Committee which need not consist of Non-Employee Directors the authority to grant Stock Awards to eligible persons who are not then subject to Section 16 of the Exchange Act.

(d)   Delegation to an Officer.   The Board may delegate to one (1) or more Officers the authority to do one or both of the following (i) designate Employees who are not Officers to be recipients of Options (and, to the extent permitted by applicable law, other Stock Awards) and the terms thereof, and (ii) determine the number of shares of Common Stock to be subject to such Stock Awards granted to such Employees; provided, however, that the Board resolutions regarding such delegation shall specify the total number of shares of Common Stock that may be subject to the Stock Awards granted by such Officer and that such Officer may not grant a Stock Award to himself or herself. Notwithstanding anything to the contrary in this Section 2(d), the Board may not delegate to an Officer authority to determine the Fair Market Value pursuant to Section 13(v)(ii) below.

(e)   Effect of Board’s Decision.   All determinations, interpretations and constructions made by the Board in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons.

3.   SHARES SUBJECT TO THE PLAN.

(a)   Initial Share Reserve.   Subject to the provisions of Section 9 relating to adjustments upon changes in stock, the aggregate number of shares of Common Stock of the Company that may be issued pursuant to Stock Awards after the Effective Date shall not exceed one million six hundred thousand (1,600,000) shares.

(b)   Evergreen Feature.   The share reserve described in subsection 3(a) shall be subject to an annual increase to be added on the first day of the fiscal year of the Company for a period of ten (10) years, commencing on June 29, 2008 and ending on June 25, 2017, equal to the lesser of (i) one percent (1%) of the shares of Common Stock outstanding on each such Calculation Date (rounded down to the nearest whole share); or (ii) two hundred fifty thousand  (250,000) shares of Common Stock. For this purpose, the term “Calculation Date” means the last day of the immediately preceding fiscal year of the Company. Notwithstanding the foregoing, the Board may act, prior to the first day of any fiscal year of the Company, to increase the share reserve by such number of shares of Common Stock as the Board shall determine, which number shall be less than each of (i) and (ii).

For clarity, the limitation in this Section is a limitation in the number of shares of Common Stock that may be issued pursuant to the Plan. Accordingly, this Section does not limit the granting of Stock Awards except as provided in subsection 7(a). Shares may be issued in connection with a merger or acquisition as permitted by NASD Rule 4350(i)(1)(A)(iii) or, if applicable, NYSE Listed Company Manual Section 303A.08, or AMEX Company Guide Section 711 and such issuance shall not reduce the number of shares available for issuance under the Plan.

(c)   Reversion of Shares to Share Reserve.   If a Stock Award (i) expires or otherwise terminates without having been exercised in full or (ii) is settled in cash (i.e., the holder of the Stock Award receives cash rather than stock), such expiration, termination or settlement shall not reduce (or otherwise offset) the number of shares Common Stock that may be issued pursuant to the Plan. If any shares of Common Stock issued pursuant to a Stock Award are forfeited back to the Company because of the failure to meet a contingency or condition required to vest such shares in the Participant, then the shares which are forfeited shall revert to and again become available for issuance under the Plan. Also, any shares reacquired by the Company pursuant to subsection 8(g) or as consideration for the exercise of an Option shall again become available for issuance under the Plan. Notwithstanding the provisions of this subsection 3(c), any shares that have been issued shall not be subsequently re-issued pursuant to the exercise of Incentive Stock Options.

(d)   Incentive Stock Option Limit.   Notwithstanding anything to the contrary in this Section 3(d), subject to the provisions of Section 9(a) relating to Capitalization Adjustments, the aggregate maximum number of shares of Common Stock that may be issued pursuant to the exercise of Incentive Stock Options shall be one million six hundred thousand (1,600,000) shares of Common Stock.

(e)   Section 162(m) Limitation on Annual Grants.   Subject to the provisions of Section 9(a) relating to Capitalization Adjustments, at such time as the Company may be subject to the applicable provisions of Section 162(m) of the Code, no Employee shall be eligible to be granted during any calendar year Stock Awards whose value is determined by reference to an increase over an exercise or strike price of at least one hundred percent (100%) of the Fair Market Value on the date the Stock Award is granted covering more than two hundred thousand  (200,000) shares of Common Stock.

(f)    Source of Shares.   The stock issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock, including shares repurchased by the Company on the market or otherwise.

4.   ELIGIBILITY.

(a)   Eligibility for Specific Stock Awards.   Incentive Stock Options may be granted only to employees of the Company or a parent corporation or subsidiary corporation (as such terms are defined in Sections 424(e) and (f) of the Code). Stock Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants.

(b)   Ten Percent Stockholders.   A Ten Percent Stockholder shall not be granted an Incentive Stock Option unless the exercise price of such Option is at least one hundred ten percent (110%) of the Fair Market Value on the date of grant and the Option is not exercisable after the expiration of five (5) years from the date of grant.

(c)   Consultants.   A Consultant shall be eligible for the grant of a Stock Award only if, at the time of grant, a Form S-8 Registration Statement under the Securities Act (“Form S-8”) is available to register either the offer or the sale of the Company’s securities to such Consultant because of the nature of the services that the Consultant is providing to the Company, because the Consultant is a natural person, or because of any other rule governing the use of Form S-8.

5.   OPTION PROVISIONS.

Each Option shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. All Options shall be separately designated Incentive Stock Options or Nonstatutory Stock Options at the time of grant, and, if certificates are issued, a separate certificate or certificates shall be issued for shares of Common Stock purchased on exercise of each type of Option. If an Option is not specifically designated as an Incentive Stock Option, then the Option shall be a Nonstatutory Stock Option. The provisions of separate Options need not be identical; provided, however, that each Option Agreement shall include (through incorporation of provisions hereof by reference in the Option Agreement or otherwise) the substance of each of the following provisions:

(a)   Term.   Subject to the provisions of Section 4(b) regarding Ten Percent Stockholders, no Option shall be exercisable after the expiration of ten (10) years from the date of its grant or such shorter period specified in the Option Agreement.

(b)   Exercise Price.   Subject to the provisions of Section 4(b) regarding Ten Percent Stockholders, the exercise price of each Option shall be not less than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option on the date the Option is granted. Notwithstanding the foregoing, an Option may be granted with an exercise price lower than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option if such Option is granted pursuant to an assumption of or substitution for another option in a manner consistent with the provisions of Section 424(a) of the Code (whether or not such options are Incentive Stock Options).

(c)   Consideration.   The purchase price of Common Stock acquired pursuant to the exercise of an Option shall be paid, to the extent permitted by applicable law and as determined by the Board in its sole discretion, by any combination of the methods of payment set forth below. The Board shall have the authority to grant Options that do not permit all of the following methods of payment (or otherwise restrict the ability to use certain methods) and to grant Options that require the consent of the Company to utilize a particular method of payment. The methods of payment permitted by this Section 5(c) are:

(i)    by cash, check, bank draft or money order payable to the Company;

(ii)   pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of the stock subject to the Option, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds;

(iii)  by delivery to the Company (either by actual delivery or attestation) of shares of Common Stock;

(iv)  by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Common 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, however, that the Company 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; provided, further, that shares of Common Stock will no longer be outstanding under an Option and will not be exercisable thereafter to the extent that (A) shares are used to pay the exercise price pursuant to the “net exercise,” (B) shares are delivered to the Participant as a result of such exercise, and (C) shares are withheld to satisfy tax withholding obligations;  or

(v)    in any other form of legal consideration that may be acceptable to the Board.

(d)   Transferability of Options.   The Board may, in its sole discretion, impose such limitations on the transferability of Options as the Board shall determine. In the absence of such a determination by the Board to the contrary, the following restrictions on the transferability of Options shall apply:

 (i)    Restrictions on Transfer.   An Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder; provided, however, that the Board may, in its sole discretion, permit transfer of the Option in a manner consistent with applicable tax and securities laws upon the Optionholder’s request.

(ii)   Domestic Relations Orders.   Notwithstanding the foregoing, an Option may be transferred pursuant to a domestic relations order, provided, however, that an Incentive Stock Option may be deemed to be a Nonqualified Stock Option as a result of such transfer.

(iii)  Beneficiary Designation.   Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form provided by or otherwise satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be the beneficiary of an Option with the right to exercise the Option and receive the Common Stock or other consideration resulting from an Option exercise.

(e)   Vesting Generally.   The total number of shares of Common Stock subject to an Option may vest and therefore become exercisable in periodic installments that may or may not be equal. The Option may be subject to such other terms and conditions on the time or times when it may or may not be exercised (which may be based on the satisfaction of Performance Goals or other criteria) as the Board may deem appropriate. The vesting provisions of individual Options may vary. The provisions of this Section 5(e) are subject to any Option provisions governing the minimum number of shares of Common Stock as to which an Option may be exercised.

(f)    Termination of Continuous Service.   Except as otherwise provided in the applicable Option Agreement or other agreement between the Optionholder and the Company, in the event that an Optionholder’s Continuous Service terminates (other than for Cause or upon the Optionholder’s death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination of Continuous Service) but only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the Optionholder’s Continuous Service (or such longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination of Continuous Service, the Optionholder does not exercise his or her Option within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate.

(g)   Extension of Termination Date.   An Optionholder’s Option Agreement may provide that if the exercise of the Option following the termination of the Optionholder’s Continuous Service (other than for Cause or upon the Optionholder’s death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of a period of three (3) months after the termination of the Optionholder’s Continuous Service during which the exercise of the Option would not be in violation of such registration requirements, or (ii) the expiration of the term of the Option as set forth in the Option Agreement.

(h)   Disability of Optionholder.   In the event that an Optionholder’s Continuous Service terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination of Continuous Service), but only within such period of time ending on the earlier of (i) the date twelve (12) months following such termination of Continuous Service (or such longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination of Continuous Service, the Optionholder does not exercise his or her Option within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate.

(i)    Death of Optionholder.   In the event that (i) an Optionholder’s Continuous Service terminates as a result of the Optionholder’s death, or (ii) the Optionholder dies within the period (if any) specified in the Option Agreement after the termination of the Optionholder’s Continuous Service for a reason other than death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated as the beneficiary of the Option upon the Optionholder’s death, but only within the period ending on the earlier of (A) the date eighteen (18) months following the date of death (or such longer or shorter period specified in the Option Agreement), or (B) the expiration of the term of such Option as set forth in the Option Agreement. If, after the Optionholder’s death, the Option is not exercised within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate. If the Optionholder designates a third party beneficiary of the Option in accordance with Section 5(d)(iii), then upon the death of the Optionholder such designated beneficiary shall have the sole right to exercise the Option and receive the Common Stock or other consideration resulting from an Option exercise.

(j)    Termination for Cause.   Except as explicitly provided otherwise in an Optionholder’s Option Agreement, in the event that an Optionholder’s Continuous Service is terminated for Cause, the Option shall terminate upon the termination date of such Optionholder’s Continuous Service, and the Optionholder shall be prohibited from exercising his or her Option from and after the time of such termination of Continuous Service.

(k)   Non-Exempt Employees.   No Option granted to an Employee that is a non-exempt employee for purposes of the Fair Labor Standards Act shall be first exercisable for any shares of Common Stock until at least six (6) months following the date of grant of the Option. The foregoing provision is intended to operate so that any income derived by a non-exempt employee in connection with the exercise or vesting of an Option will be exempt from his or her regular rate of pay.

(l)    Early Exercise.   The Option may, but need not, include a provision whereby the Optionholder may elect at any time before the Optionholder’s Continuous Service terminates to exercise the Option as to any part or all of the shares of Common Stock subject to the Option prior to the full vesting of the Option. Any unvested shares of Common Stock so purchased may be subject to a repurchase option in favor of the Company or to any other restriction the Board determines to be appropriate.

6.   PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.

(a)   Restricted Stock Awards.   Each Restricted Stock Award Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. To the extent consistent with the Company’s Bylaws, at the Board’s election, shares of Common Stock may be (x) held in book entry form subject to the Company’s instructions until any restrictions relating to the Restricted Stock Award lapse; or (y) evidenced by a certificate, which certificate shall be held in such form and manner as determined by the Board. The terms and conditions of Restricted Stock Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Award Agreements need not be identical; provided, however, that each Restricted Stock Award Agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions:

(i)    Consideration.   A Restricted Stock Award may be awarded in consideration for (A) past or future services actually or to be rendered to the Company or an Affiliate, or (B) any other form of legal consideration that may be acceptable to the Board in its sole discretion and permissible under applicable law.

(ii)   Vesting.   Shares of Common Stock awarded under the Restricted Stock Award Agreement may be subject to forfeiture to the Company in accordance with a vesting schedule to be determined by the Board.

 (iii)  Termination of Participant’s Continuous Service.   In the event a Participant’s Continuous Service terminates, the Company may receive via a forfeiture condition, any or all of the shares of Common Stock held by the Participant which have not vested as of the date of termination of Continuous Service under the terms of the Restricted Stock Award Agreement.

(iv)  Transferability.   Rights to acquire shares of Common Stock under the Restricted Stock Award Agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the Restricted Stock Award Agreement, as the Board shall determine in its sole discretion, so long as Common Stock awarded under the Restricted Stock Award Agreement remains subject to the terms of the Restricted Stock Award Agreement.

(b)   Restricted Stock Unit Awards.   Each Restricted Stock Unit Award Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of Restricted Stock Unit Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Unit Award Agreements need not be identical; provided, however, that each Restricted Stock Unit Award Agreement shall include (through incorporation of the provisions hereof by reference in the Agreement or otherwise) the substance of each of the following provisions:

(i)    Consideration.   At the time of grant of a Restricted Stock Unit Award, the Board will determine the consideration, if any, to be paid by the Participant upon delivery of each share of Common Stock subject to the Restricted Stock Unit Award. The consideration to be paid (if any) by the Participant for each share of Common Stock subject to a Restricted Stock Unit Award may be paid in any form of legal consideration that may be acceptable to the Board in its sole discretion and permissible under applicable law.

(ii)   Vesting.   At the time of the grant of a Restricted Stock Unit Award, the Board may impose such restrictions or conditions to the vesting of the Restricted Stock Unit Award as it, in its sole discretion, deems appropriate.

(iii)  Payment.   A Restricted Stock Unit Award may be settled by the delivery of shares of Common Stock, their cash equivalent, any combination thereof or in any other form of consideration, as determined by the Board and contained in the Restricted Stock Unit Award Agreement.

(iv)  Additional Restrictions.   At the time of the grant of a Restricted Stock Unit Award, the Board, as it deems appropriate, may impose such restrictions or conditions that delay the delivery of the shares of Common Stock (or their cash equivalent) subject to a Restricted Stock Unit Award to a time after the vesting of such Restricted Stock Unit Award.

(v)    Dividend Equivalents.   Dividend equivalents may be credited in respect of shares of Common Stock covered by a Restricted Stock Unit Award, as determined by the Board and contained in the Restricted Stock Unit Award Agreement. At the sole discretion of the Board, such dividend equivalents may be converted into additional shares of Common Stock covered by the Restricted Stock Unit Award in such manner as determined by the Board. Any additional shares covered by the Restricted Stock Unit Award credited by reason of such dividend equivalents will be subject to all the terms and conditions of the underlying Restricted Stock Unit Award Agreement to which they relate.

(vi)  Termination of Participant’s Continuous Service.   Except as otherwise provided in the applicable Restricted Stock Unit Award Agreement, such portion of the Restricted Stock Unit Award that has not vested will be forfeited upon the Participant’s termination of Continuous Service.

(vii) Compliance with Section 409A of the Code.   Notwithstanding anything to the contrary set forth herein, any Restricted Stock Unit Award granted under the Plan that is not exempt from the requirements of Section 409A of the Code shall contain such provisions so that such Restricted Stock Unit Award will comply with the requirements of Section 409A of the Code. Such restrictions, if any, shall be determined by the Board and contained in the Restricted Stock Unit Award Agreement evidencing such Restricted Stock Unit Award. For example, such restrictions may include, without limitation, a requirement that any Common Stock that is to be issued in a year following the year in which the Restricted Stock Unit Award vests must be issued in accordance with a fixed pre-determined schedule.

(c)   Stock Appreciation Rights.   Each Stock Appreciation Right Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. Stock Appreciation Rights may be granted as stand-alone Stock Awards or in tandem with other Stock Awards. The terms and conditions of Stock Appreciation Right Agreements may change from time to time, and the terms and conditions of separate Stock Appreciation Right Agreements need not be identical; provided, however, that each Stock Appreciation Right Agreement shall include (through incorporation of the provisions hereof by reference in the Agreement or otherwise) the substance of each of the following provisions:

(i)    Term.   No Stock Appreciation Right shall be exercisable after the expiration of ten (10) years from the date of its grant or such shorter period specified in the Stock Appreciation Right Agreement.

(ii)   Strike Price.   Each Stock Appreciation Right will be denominated in shares of Common Stock equivalents. The strike price of each Stock Appreciation Right shall not be less than one hundred percent (100%) of the Fair Market Value of the Common Stock equivalents subject to the Stock Appreciation Right on the date of grant.

(iii)  Calculation of Appreciation.   The appreciation distribution payable on the exercise of a Stock Appreciation Right will be not greater than an amount equal to the excess of (A) the aggregate Fair Market Value (on the date of the exercise of the Stock Appreciation Right) of a number of shares of Common Stock equal to the number of Common Stock equivalents in which the Participant is vested under such Stock Appreciation Right, and with respect to which the Participant is exercising the Stock Appreciation Right on such date, over (B) the strike price that will be determined by the Board at the time of grant of the Stock Appreciation Right.

(iv)  Vesting.   At the time of the grant of a Stock Appreciation Right, the Board may impose such restrictions or conditions to the vesting of such Stock Appreciation Right as it, in its sole discretion, deems appropriate.

(v)    Exercise.   To exercise any outstanding Stock Appreciation Right, the Participant must provide written notice of exercise to the Company in compliance with the provisions of the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right.

(vi)  Payment.   The appreciation distribution in respect to a Stock Appreciation Right may be paid in Common Stock, in cash, in any combination of the two or in any other form of consideration, as determined by the Board and contained in the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right.

(vii) Termination of Continuous Service.   In the event that a Participant’s Continuous Service terminates (other than for Cause), the Participant may exercise his or her Stock Appreciation Right (to the extent that the Participant was entitled to exercise such Stock Appreciation Right as of the date of termination) but only within such period of time ending on the earlier of (A) the date three (3) months following the termination of the Participant’s Continuous Service (or such longer or shorter period specified in the Stock Appreciation Right Agreement), or (B) the expiration of the term of the Stock Appreciation Right as set forth in the Stock Appreciation Right Agreement. If, after termination, the Participant does not exercise his or her Stock Appreciation Right within the time specified herein or in the Stock Appreciation Right Agreement (as applicable), the Stock Appreciation Right shall terminate.

 (viii) Termination for Cause.   Except as explicitly provided otherwise in an Participant’s Stock Appreciation Right Agreement, in the event that a Participant’s Continuous Service is terminated for Cause, the Stock Appreciation Right shall terminate upon the termination date of such Participant’s Continuous Service, and the Participant shall be prohibited from exercising his or her Stock Appreciation Right from and after the time of such termination of Continuous Service.

(ix)  Compliance with Section 409A of the Code.   Notwithstanding anything to the contrary set forth herein, any Stock Appreciation Rights granted under the Plan that are not exempt from the requirements of Section 409A of the Code shall contain such provisions so that such Stock Appreciation Rights will comply with the requirements of Section 409A of the Code. Such restrictions, if any, shall be determined by the Board and contained in the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right. For example, such restrictions may include, without limitation, a requirement that a Stock Appreciation Right that is to be paid wholly or partly in cash must be exercised and paid in accordance with a fixed pre-determined schedule.

(d)   Performance Stock Awards.   A Performance Stock Award is a Stock Award that may be granted, may vest, or may be exercised based upon the attainment during a Performance Period of certain Performance Goals. A Performance Stock Award may, but need not, require the completion of a specified period of Continuous Service. The length of any Performance Period, the Performance Goals to be achieved during the Performance Period, and the measure of whether and to what degree such Performance Goals have been attained shall be conclusively determined by the Committee in its sole discretion. The maximum number of shares that may be granted to any Participant in a calendar year attributable to Stock Awards described in this Section 6(d) shall not exceed Two hundred thousand (200,000) shares of Common Stock. In addition, to the extent permitted by applicable law and the applicable Award Agreement, the Board may determine that cash may be used in payment of Performance Stock Awards.

(e)   Other Stock Awards.   Other forms of Stock Awards valued in whole or in part by reference to, or otherwise based on, Common Stock may be granted either alone or in addition to Stock Awards provided for under Section 5 and the preceding provisions of this Section 6. Subject to the provisions of the Plan, the Board shall have sole and complete authority to determine the persons to whom and the time or times at which such Other Stock Awards will be granted, the number of shares of Common Stock (or the cash equivalent thereof) to be granted pursuant to such Other Stock Awards and all other terms and conditions of such Other Stock Awards.

7.   COVENANTS OF THE COMPANY.

(a)   Availability of Shares.   During the terms of the Stock Awards, the Company shall keep available at all times the number of shares of Common Stock reasonably required to satisfy such Stock Awards.

(b)   Securities Law Compliance.   The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any such Stock Award. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority that counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell Common Stock upon exercise of such Stock Awards unless and until such authority is obtained.

 (c)   No Obligation to Notify.   The Company shall have no duty or obligation to any holder of a Stock Award to advise such holder as to the time or manner of exercising such Stock Award. Furthermore, the Company shall have no duty or obligation to warn or otherwise advise such holder of a pending termination or expiration of a Stock Award or a possible period in which the Stock Award may not be exercised. The Company has no duty or obligation to minimize the tax consequences of a Stock Award to the holder of such Stock Award.

8.   MISCELLANEOUS.

(a)   Use of Proceeds from Sales of Common Stock.   Proceeds from the sale of shares of Common Stock pursuant to Stock Awards shall constitute general funds of the Company.

(b)   Corporate Action Constituting Grant of Stock Awards.   Corporate action constituting a grant by the Company of a Stock Award to any Participant shall be deemed completed as of the date of such corporate action, unless otherwise determined by the Board, regardless of when the instrument, certificate, or letter evidencing the Stock Award is communicated to, or actually received or accepted by, the Participant.

(c)   Stockholder Rights.   No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to such Stock Award unless and until such Participant has exercised the Stock Award pursuant to its terms and the Participant shall not be deemed to be a stockholder of record until the issuance of the Common Stock pursuant to such exercise has been entered into the books and records of the Company.

(d)   No Employment or Other Service Rights.   Nothing in the Plan, any Stock Award Agreement or other instrument executed thereunder or in connection with any Award granted pursuant to the Plan shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or shall affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate, or (iii) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.

(e)   Incentive Stock Option $100,000 Limitation.   To the extent that the aggregate Fair Market Value (determined at the time of grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and any Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or portions thereof that exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory Stock Options, notwithstanding any contrary provision of the applicable Option Agreement(s).

(f)    Investment Assurances.   The Company may require a Participant, as a condition of exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring Common Stock subject to the Stock Award for the Participant’s own account and not with any present intention of selling or otherwise distributing the Common Stock. The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (A) the issuance of the shares upon the exercise or acquisition of Common Stock under the Stock Award has been registered under a then currently effective registration statement under the Securities Act, or (B) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Common Stock.

(g)   Withholding Obligations.   Unless prohibited by the terms of a Stock Award Agreement, the Company may, in its sole discretion, satisfy any federal, state or local tax withholding obligation relating to an Award by any of the following means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (i) causing the Participant to tender a cash payment; (ii)  withholding shares of Common Stock from the shares of Common Stock issued or otherwise issuable to the Participant in connection with the Award; (iii) withholding cash from an Award settled in cash; or (iv) by such other method as may be set forth in the Award Agreement.

(h)   Electronic Delivery.   Any reference herein to a “written” agreement or document shall include any agreement or document delivered electronically or posted on the Company’s intranet.

(i)    Deferrals.   To the extent permitted by applicable law, the Board, in its sole discretion, may determine that the delivery of Common Stock or the payment of cash, upon the exercise, vesting or settlement of all or a portion of any Award may be deferred and may establish programs and procedures for deferral elections to be made by Participants. Deferrals by Participants will be made in accordance with Section 409A of the Code. Consistent with Section 409A of the Code, the Board may provide for distributions while a Participant is still an employee. The Board is authorized to make deferrals of Stock Awards and determine when, and in what annual percentages, Participants may receive payments, including lump sum payments, following the Participant’s termination of employment or retirement, and implement such other terms and conditions consistent with the provisions of the Plan and in accordance with applicable law.

(j)    Compliance with Section 409A of the Code.   To the extent that the Board determines that any Award granted under the Plan is subject to Section 409A of the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions necessary to avoid the consequences specified in Section 409A(a)(1) of the Code. To the extent applicable, the Plan and Award Agreements shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued or amended after the Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event that following the Effective Date the Board determines that any Award may be subject to Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury guidance as may be issued after the Effective Date), the Board may adopt such amendments to the Plan and the applicable Award Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Board determines are necessary or appropriate to (i) exempt the Award from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (ii) comply with the requirements of Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued or amended after the Effective Date.

9.   ADJUSTMENTS UPON CHANGES IN COMMON STOCK; OTHER CORPORATE EVENTS.

(a)   Capitalization Adjustments.   In the event of a Capitalization Adjustment, the Board shall appropriately adjust: (i) the class(es) and maximum number of securities subject to the Plan pursuant to Section 3(a), (ii) the class(es) and maximum number of securities that may be issued pursuant to the exercise of Incentive Stock Options pursuant to Section 3(c), (iii) the class(es) and maximum number of securities that may be awarded to any person pursuant to Section 3(d) and 6(d), and (iv) the class(es) and number of securities and price per share of stock subject to outstanding Stock Awards. The Board shall make such adjustments, and its determination shall be final, binding and conclusive.

(b)   Dissolution or Liquidation.   Except as otherwise provided in the Stock Award Agreement, in the event of a dissolution or liquidation of the Company, all outstanding Stock Awards (other than Stock Awards consisting of vested and outstanding shares of Common Stock not subject to the Company’s right of repurchase) shall terminate immediately prior to the completion of such dissolution or liquidation, and the shares of Common Stock subject to the Company’s repurchase option may be repurchased by the Company notwithstanding the fact that the holder of such Stock Award is providing Continuous Service, provided, however, that the Board may, in its sole discretion, cause some or all Stock Awards to become fully vested, exercisable and/or no longer subject to repurchase or forfeiture (to the extent such Stock Awards have not previously expired or terminated) before the dissolution or liquidation is completed but contingent on its completion.

(c)   Corporate Transaction.   The following provisions shall apply to Stock Awards in the event of a Corporate Transaction unless otherwise provided in the instrument evidencing the Stock Award or any other written agreement between the Company or any Affiliate and the Participant or unless otherwise expressly provided by the Board at the time of grant of a Stock Award. If there is a Corporate Transaction, then the Board, or the board of directors of any corporation or entity assuming the obligations of the Company, shall take any one or more of the following actions as to outstanding Stock Awards in its sole and absolute discretion:

(i)    Stock Awards May Be Continued, Assumed or Substituted.   Any surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) may assume or continue any or all Stock Awards outstanding under the Plan or may substitute similar stock awards for Stock Awards outstanding under the Plan (including but not limited to, awards to acquire the same consideration paid to the stockholders of the Company pursuant to the Corporate Transaction), and any reacquisition or repurchase rights held by the Company in respect of Common Stock issued pursuant to Stock Awards may be assigned by the Company to the successor of the Company (or the successor’s parent company, if any), in connection with such Corporate Transaction. A surviving corporation or acquiring corporation (or its parent) may choose to assume or continue only a portion of a Stock Award or substitute a similar stock award for only a portion of a Stock Award, or may assume, continue or substitute some Stock Awards and not others. The terms of any assumption, continuation or substitution shall be set by the Board in accordance with the provisions of Section 2.

(ii)   Accelerated Vesting of Stock Awards.   The vesting of any or all Stock Awards (and, with respect to Options and Stock Appreciation Rights, the time at which such Stock Awards may be exercised) may be accelerated in full or in part to a date on or prior to the effective time of such Corporate Transaction (contingent upon the effectiveness of the Corporate Transaction) as the Board shall determine, and the Board may further determine that any reacquisition or repurchase rights held by the Company with respect to a Stock Award shall lapse in full or in part as of a date on or prior to the effective time of such Corporate Transaction (contingent upon the effectiveness of the Corporate Transaction).

(iii)  Termination of Stock Awards.   The Board may provide that all Stock Awards (including vested Awards that are not exercised) shall immediately terminate and be of no further force or effect as of the effective time of the Corporate Transaction.

(iv)  Payment for Stock Awards in Lieu of Exercise.   The Board may provide that the holder of a Stock Award may not exercise such Stock Award but will receive a payment, in such form as may be determined by the Board, equal in value to the excess, if any, of (A) the value of the property the holder of the Stock Award would have received upon the exercise of the Stock Award (including, at the discretion of the Board, any unvested portion of such Stock Award), over (B) any exercise price payable by such holder in connection with such exercise.

(d)   Change in Control.   A Stock Award may be subject to additional acceleration of vesting and exercisability upon or after a Change in Control as may be provided in the Stock Award Agreement for such Stock Award or as may be provided in any other written agreement between the Company or any Affiliate and the Participant, but in the absence of such provision, no such acceleration shall occur.

10.   TERMINATION OR SUSPENSION OF THE PLAN.

(a)   Plan Term.   Unless sooner terminated by the Board pursuant to Section 2, the Plan shall automatically terminate on the day before the tenth (10th) anniversary of the date the Plan is adopted by the Board or approved by the stockholders of the Company, whichever is earlier. No Awards may be granted under the Plan while the Plan is suspended or after it is terminated.

(b)   No Impairment of Rights.   Termination of the Plan shall not impair rights and obligations under any Award granted while the Plan is in effect except with the written consent of the affected Participant.

11.   EFFECTIVE DATE OF PLAN.

This Plan shall become effective on the Effective Date.

12.   CHOICE OF LAW.

The law of the State of Delaware shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to such state’s conflict of laws rules.

13.   DEFINITIONS.   As used in the Plan, the definitions contained in this Section 13 shall apply to the capitalized terms indicated below:

(a)   “Affiliate” means, at the time of determination, any “parent” or “subsidiary” of the Company as such terms are defined in Rule 405 of the Securities Act. The Board shall have the authority to determine the time or times at which “parent” or “subsidiary” status is determined within the foregoing definition.

(b)   “Award” means a Stock Award.

(c)   “Board” means the Board of Directors of the Company.

(d)   “Capitalization Adjustment” means any change that is made in, or other events that occur with respect to, the Common Stock subject to the Plan or subject to any Stock Award after the Effective Date without the receipt of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company. Notwithstanding the foregoing, the conversion of any convertible securities of the Company shall not be treated as a transaction “without receipt of consideration” by the Company.

(e)   “Cause” shall have the meaning set forth in any employment agreement or offer letter between a Participant and the Company or an Affiliate to the extent then effective; provided, however, that if any such employment agreement or offer letter does not contain a definition of “Cause,” then the term shall mean with respect to a Participant, the occurrence of any of the following events:  (i) such Participant’s commission of any felony or any crime involving fraud, dishonesty or moral turpitude under the laws of the United States or any state thereof; (ii) such Participant’s attempted commission of, or participation in, a fraud or act of dishonesty against the Company; (iii) such Participant’s intentional, material violation of any contract or agreement between the Participant and the Company or of any statutory duty owed to the Company; (iv)  such Participant’s unauthorized use or disclosure of the Company’s confidential information or trade secrets; or (v) such Participant’s gross misconduct. The determination that a termination of the Participant’s Continuous Service is either for Cause or without Cause shall be made by the Company in its sole discretion. Any determination by the Company that the Continuous Service of a Participant was terminated by reason of dismissal without Cause for the purposes of outstanding Awards held by such Participant shall have no effect upon any determination of the rights or obligations of the Company or such Participant for any other purpose.

(f)    “Change in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:

(i)    any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction. Notwithstanding the foregoing, a Change in Control shall not be deemed to occur (A) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person from the Company in a transaction or series of related transactions the primary purpose of which is to obtain financing for the Company through the issuance of equity securities, or (B) solely because the level of Ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the Owner of any additional voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities Owned by the Subject Person over the designated percentage threshold, then a Change in Control shall be deemed to occur;

(ii)   there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or (B) more than fifty percent (50%) of the combined outstanding voting power of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such transaction;

(iii)  the stockholders of the Company approve or the Board approves a plan of complete dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company shall otherwise occur, except for a liquidation into a parent corporation; or

(iv)  there is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries to an Entity, more than fifty percent (50%) of the combined voting power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition.

For the avoidance of doubt, the term Change in Control shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company. Notwithstanding the foregoing or any other provision of this Plan, the definition of Change in Control (or any analogous term) in an individual written agreement between the Company or any Affiliate and the Participant shall supersede the foregoing definition with respect to Awards subject to such agreement; provided, however, that if no definition of Change in Control or any analogous term is set forth in such an individual written agreement, the foregoing definition shall apply.

(g)   “Code” means the Internal Revenue Code of 1986, as amended.

(h)   “Committee” means a committee of one (1) or more Directors to whom authority has been delegated by the Board in accordance with Section 2(c).

(i)    “Common Stock” means the common stock of the Company.

(j)    “Company” means Cuisine Solutions, Inc., a Delaware corporation.

(k)   “Consultant” means any person, including an advisor, who is (i) engaged by the Company or an Affiliate to render consulting or advisory services and is compensated for such services, or (ii) serving as a member of the board of directors of an Affiliate and is compensated for such services. However, service solely as a Director, or payment of a fee for such service, shall not cause a Director to be considered a “Consultant” for purposes of the Plan.

(l)    “Continuous Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated. A change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s service with the Company or an Affiliate, shall not terminate a Participant’s Continuous Service. For example, a change in status from an employee of the Company to a consultant to an Affiliate or to a Director shall not constitute an interruption of Continuous Service. To the extent permitted by law, the Board or the chief executive officer of the Company, in that party’s sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal leave. Notwithstanding the foregoing, a leave of absence shall be treated as Continuous Service for purposes of vesting in a Stock Award only to such extent as may be provided in the Company’s leave of absence policy, in the written terms of any leave of absence agreement or policy applicable to the Participant, or as otherwise required by law.

(m)  “Corporate Transaction” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:

(i)    a sale or other disposition of all or substantially all, as determined by the Board in its sole discretion, of the consolidated assets of the Company and its Subsidiaries;

(ii)   a sale or other disposition of at least fifty percent (50%) of the outstanding securities of the Company;

(iii)  the consummation of a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or

(iv)  the consummation of a merger, consolidation or similar transaction following which the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other property, whether in the form of securities, cash or otherwise.

 (n)   “Covered Employee” shall have the meaning provided in Section 162(m)(3) of the Code and the regulations promulgated thereunder.

(o)   “Director” means a member of the Board.

(p)   “Disability” means, with respect to a Participant,  the inability of such Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, as provided in Section 22(e)(3) and 409A(a)(2)(c)(i) of the Code.

(q)   “Effective Date” means August 3, 2007, but no Common Stock shall be issued pursuant to an Award unless and until the Plan has been approved by the stockholders of the Company, which approval shall be within twelve (12) months before or after the date the Plan is adopted by the Board.

(r)   “Employee” means any person employed by the Company or an Affiliate. However, service solely as a Director, or payment of a fee for such services, shall not cause a Director to be considered an “Employee” for purposes of the Plan.

(s)   “Entity” means a corporation, partnership, limited liability company or other entity.

(t)    “Exchange Act” means the Securities Exchange Act of 1934, as amended.

(u)   “Exchange Act Person” means any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” shall not include (i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of the Company or any Subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, (iv) an Entity Owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their Ownership of stock of the Company; or (v) any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the Effective Date of the Plan as set forth in Section 11, is the Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities.

(v)   “Fair Market Value” means, as of any date, the value of the Common Stock determined as follows:

(i)    If the Common Stock is listed on any established stock exchange or traded on any established market, the Fair Market Value of a share of Common Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the date of determination, as reported in The Wall Street Journal or such other source as the Board deems reliable. Unless otherwise provided by the Board, if there is no closing sales price (or closing bid if no sales were reported) for the Common Stock on the date of determination, then the Fair Market Value shall be the closing selling price (or closing bid if no sales were reported) on the last preceding date for which such quotation exists.

(ii)   In the absence of such markets for the Common Stock, the Fair Market Value shall be determined by the Board in good faith.

(w)   “Incentive Stock Option” means an option granted pursuant to Section 5 of the Plan that is intended to be, and qualifies as, an “incentive stock option” within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

(x)   “Non-Employee Director” means a Director who either (i) is not a current employee or officer of the Company or an Affiliate, does not receive compensation, either directly or indirectly, from the Company or an Affiliate for services rendered as a consultant or in any capacity other than as a Director (except for an amount as to which disclosure would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act (“Regulation S-K”)), does not possess an interest in any other transaction for which disclosure would be required under Item 404(a) of Regulation S-K, and is not engaged in a business relationship for which disclosure would be required pursuant to Item 404(b) of Regulation S-K; or (ii) is otherwise considered a “non-employee director” for purposes of Rule 16b-3.

(y)   “Nonstatutory Stock Option” means any option granted pursuant to Section 5 of the Plan that does not qualify as an Incentive Stock Option.

(z)   “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

(aa) “Option” means an Incentive Stock Option or a Nonstatutory Stock Option to purchase shares of Common Stock granted pursuant to the Plan.

(bb) “Option Agreement” means a written agreement between the Company and an Optionholder evidencing the terms and conditions of an Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan.

(cc) “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if permitted under the terms of this Plan, such other person who holds an outstanding Option.

(dd) “Other Stock Award” means an award based in whole or in part by reference to the Common Stock which is granted pursuant to the terms and conditions of Section 6(d).

(ee) “Other Stock Award Agreement” means a written agreement between the Company and a holder of an Other Stock Award evidencing the terms and conditions of an Other Stock Award grant. Each Other Stock Award Agreement shall be subject to the terms and conditions of the Plan.

(ff)   “Outside Director” means a Director who either (i) is not a current employee of the Company or an “affiliated corporation” (within the meaning of Treasury Regulations promulgated under Section 162(m) of the Code), is not a former employee of the Company or an “affiliated corporation” who receives compensation for prior services (other than benefits under a tax-qualified retirement plan) during the taxable year, has not been an officer of the Company or an “affiliated corporation,” and does not receive remuneration from the Company or an “affiliated corporation,” either directly or indirectly, in any capacity other than as a Director, or (ii) is otherwise considered an “outside director” for purposes of Section 162(m) of the Code.

(gg) “Own,” “Owned,” “Owner,” “Ownership”  A person or Entity shall be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities.

(hh) “Participant” means a person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award.

(ii)   “Performance Criteria” means the one or more criteria that the Board shall select for purposes of establishing the Performance Goals for a Performance Period. The Performance Criteria that shall be used to establish such Performance Goals may be based on any one of, or combination of, the following: (i) earnings per share; (ii) earnings before interest, taxes and depreciation; (iii) earnings before interest, taxes, depreciation and amortization; (iv) total stockholder return; (v) return on equity; (vi) return on assets, investment, or capital employed; (vii) operating margin; (viii) gross margin; (ix) operating income; (x) net income (before or after taxes); (xi) net operating income; (xii) net operating income after tax; (xiii) pre-tax profit; (xiv) operating cash flow; (xv) sales or revenue targets; (xvi) increases in revenue or product revenue; (xvii) expenses and cost reduction goals; (xviii) improvement in or attainment of working capital levels; (xix) economic value added (or an equivalent metric); (xx) market share; (xxi) cash flow; (xxii) cash flow per share; (xxiii) share price performance; (xxiv) debt reduction; (xxv) implementation or completion of projects or processes; (xxvi) customer satisfaction; (xxvii) stockholders’ equity; and (xxviii) to the extent that an Award is not intended to comply with Section 162(m) of the Code, other measures of performance selected by the Board. Partial achievement of the specified criteria may result in the payment or vesting corresponding to the degree of achievement as specified in the Stock Award Agreement or the written terms of a Performance Cash Award. The Board shall, in its sole discretion, define the manner of calculating the Performance Criteria it selects to use for such Performance Period.

(jj)   “Performance Goals” means, for a Performance Period, the one or more goals established by the Board for the Performance Period based upon the Performance Criteria. Performance Goals may be based on a Company-wide basis, with respect to one or more business units, divisions, Affiliates, or business segments, and in either absolute terms or relative to the performance of one or more comparable companies or the performance of one or more relevant indices. At the time of the grant of any Award, the Board is authorized to determine whether, when calculating the attainment of Performance Goals for a Performance Period: (i) to exclude restructuring and/or other nonrecurring charges; (ii) to exclude exchange rate effects, as applicable, for non-U.S. dollar denominated net sales and operating earnings; (iii) to exclude the effects of changes to generally accepted accounting standards required by the Financial Accounting Standards Board; (iv) to exclude the effects of any statutory adjustments to corporate tax rates; and (v) to exclude the effects of any “extraordinary items” as determined under generally accepted accounting principles. In addition, the Board retains the discretion to reduce or eliminate the compensation or economic benefit due upon attainment of Performance Goals.

(kk) “Performance Period” means the period of time selected by the Board over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant’s right to and the payment of a Stock Award or a Performance Cash Award. Performance Periods may be of varying and overlapping duration, at the sole discretion of the Board.

(ll)   “Performance Stock Award” means a Stock Award granted under the terms and conditions of Section 6(d).

(mm) “Plan” means this Cuisine Solutions, Inc. 2007 Equity Incentive Plan.

(nn) “Restricted Stock Award” means an award of shares of Common Stock which is granted pursuant to the terms and conditions of Section 6(a).

(oo) “Restricted Stock Award Agreement” means a written agreement between the Company and a holder of a Restricted Stock Award evidencing the terms and conditions of a Restricted Stock Award grant. Each Restricted Stock Award Agreement shall be subject to the terms and conditions of the Plan.

(pp) “Restricted Stock Unit Award” means a right to receive shares of Common Stock which is granted pursuant to the terms and conditions of Section 6(b).

(qq) “Restricted Stock Unit Award Agreement” means a written agreement between the Company and a holder of a Restricted Stock Unit Award evidencing the terms and conditions of a Restricted Stock Unit Award grant. Each Restricted Stock Unit Award Agreement shall be subject to the terms and conditions of the Plan.

(rr) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time.

(ss) “Securities Act” means the Securities Act of 1933, as amended.

 (tt)   “Stock Appreciation Right” means a right to receive the appreciation on Common Stock that is granted pursuant to the terms and conditions of Section 6(c).

(uu) “Stock Appreciation Right Agreement” means a written agreement between the Company and a holder of a Stock Appreciation Right evidencing the terms and conditions of a Stock Appreciation Right grant. Each Stock Appreciation Right Agreement shall be subject to the terms and conditions of the Plan.

(vv) “Stock Award” means any right to receive Common Stock granted under the Plan, including an Incentive Stock Option, a Nonstatutory Stock Option, a Restricted Stock Award, a Restricted Stock Unit Award, a Stock Appreciation Right, a Performance Stock Award or any Other Stock Award.

(ww) “Stock Award Agreement” means a written agreement between the Company and a Participant evidencing the terms and conditions of a Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan.

(xx) “Subsidiary” means, with respect to the Company, (i) any corporation of which more than fifty percent (50%) of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, limited liability company or other entity in which the Company has a direct or indirect interest (whether in the form of voting or participation in profits or capital) of more than fifty percent (50%).

(yy) “Ten Percent Stockholder” means a person who Owns (or is deemed to Own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Affiliate.

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