Document:

Blockbuster Inc. 2004 Long-Term Management Incentive Plan

 Exhibit 10.7 
  
 BLOCKBUSTER INC. 
 2004 LONG-TERM MANAGEMENT INCENTIVE PLAN 
  
 (AS AMENDED THROUGH OCTOBER 6, 2004) 
  
 ARTICLE I 
  
 GENERAL 
  
 Section 1.1 Purpose. 
  
 The purpose of the Blockbuster Inc. 2004 Long-Term Management Incentive Plan (the “Plan”) is to benefit and
advance the interests of Blockbuster Inc., a Delaware corporation (the “Company”), and its Subsidiaries by (i) attracting and retaining employees, Non-Employee Directors and Advisors of the Company and its Subsidiaries; and (ii) rewarding
such persons for their contributions to the financial success of the Company and thereby motivating them to continue to make such contributions in the future. 
  

Section 1.2 Definitions. 
  
 As used in the Plan, the following terms shall have the following meanings: 
  
 (a) “Adjusted Operating Income” shall mean operating income plus intangible amortization and depreciation
expenses, adjusted for non-cash charges. Non-cash charges may include, without limitation, the impacts to operating income of changes in accounting principles or estimates or other unusual, infrequent non-cash items. 
  
 (b) “Adjusted Net Income” shall mean net income, adjusted for
non-cash charges. Non-cash charges may include, without limitation, the impacts to net income of changes in accounting principles or estimates or other unusual, infrequent non-cash items. 
  
 (c) “Advisor” shall mean any person performing advisory or consulting services for the Company or any Subsidiary,
with or without compensation, to whom the Company chooses to make a Grant in accordance with the Plan; provided that (i) bona fide services must be rendered by such person; and (ii) such services shall not be rendered in connection
with the offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities. 
  
 (d) “Agreement” shall mean the agreement, certificate or other documentation (in each case, whether in written,
electronic or other format) governing the grant of an Award under the Plan, in a form approved by the Committee, which shall contain terms and conditions not inconsistent with the Plan and which shall incorporate the Plan by reference. 

 
 (e) “Adjusted Income Before Income Taxes” shall mean income
before income taxes, adjusted for non-cash charges. Non-cash charges may include, without limitation, the impacts to income before income taxes of changes in accounting principles or estimates or other unusual, infrequent non-cash items. 

 
 (f) “Appreciation Value” shall mean the excess, if any, of the
Value of a Phantom Share on the applicable Valuation Date or the date of a Participant’s termination of employment or service or of a Participant’s death or Permanent Disability (as described in Section 6.5(a) hereof), as the case may be,
over the Initial Value of such Phantom Share. 
  
 (g)
“Award” shall mean any grant of Stock Options, Stock Appreciation Rights, Restricted Shares, Restricted Share Units, unrestricted shares of Common Stock, Phantom Shares, or a combination of any of the above granted under the Plan.

  
 (h) “Board” shall mean the Board of Directors of the
Company. 
  
 (i) “Class B Common Stock” shall mean
shares of Class B Common Stock, par value $0.01, of the Company. 
  
 (j) “Code” shall mean the Internal Revenue Code of 1986, as amended, including any successor law thereto, and the rules and regulations promulgated thereunder. 
  
 (k) “Committee” shall mean the committee(s) appointed or designated by the Board to administer the Plan in
accordance with Section 1.3 of the Plan. 
  
 (l) “Common
Stock” shall mean shares of Class A Common Stock, par value $0.01 per share, of the Company, or, in the event that the outstanding shares of such Common Stock are thereafter changed into or exchanged for shares of a different stock or security
of the Company or another corporation, such other stock or security. 
  

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 (m) “Company” shall have the meaning set forth in Section 1.1. 
  
 (n) “Date of Grant” shall mean the effective date of the grant of
an Award as set forth in the applicable Agreement. 
  
 (o)
“Dividend Equivalent” shall mean a right to receive payment of dividends declared and paid on all or a portion of the number of shares of Common Stock subject to a specified Award under the Plan, as determined by the Committee. 

 
 (p) “Effective Date” shall have the meaning set forth in Article
XII. 
  
 (q) “Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended, including any successor law thereto. 
  
 (r) “Fair Market Value” of a share of Common Stock or Class B Common Stock on a given date shall be, unless otherwise determined by the Committee, the 4:00 p.m. (New York time) closing price of a share of Common Stock or Class B
Common Stock on the New York Stock Exchange or such other national securities exchange as may be designated by the Committee, or, in the event that the Common Stock or Class B Common Stock is not listed for trading on a national securities exchange,
but is quoted on an automated quotation system, the average closing bid per share of the Common Stock or Class B Common Stock on such automated quotation system or, in the event that the Common Stock or Class B Common Stock is not quoted on any such
system, the average of the closing bid prices per share of the Common Stock or Class B Common Stock as furnished by a professional marketmaker making a market in the Common Stock or Class B Common Stock designated by the Committee. 
  
 (s) “Free Cash Flow” shall mean net cash flow from operating
activities less rental library purchases and capital expenditures. 
  
 (t) “Grant” shall mean a grant of an Award under the Plan. 
  
 (u) “Incentive Stock Option” shall mean a Stock Option that by its terms is intended to be treated as an “incentive stock option” within the meaning of Section 422 of the Code. 
  
 (v) “Initial Value” shall mean the value of a Phantom Share as
specified by the Committee as of the Date of Grant or the Value of a Phantom Share calculated as of the Date of Grant or such earlier date as the Committee may determine. 
  
 (w) “Non-Employee Director” shall mean a member of the Board of Directors of the Company or any Subsidiary who is
not an employee of the Company, the parent thereof or any Subsidiary. 
  
 (x) “Non-Qualified Stock Option” shall mean any Stock Option that does not qualify as an Incentive Stock Option. 
  
 (y) “OIBDA” shall mean Operating Income before depreciation and amortization. 
  
 (z) “Outstanding Phantom Share” shall mean a Phantom Share granted to a Participant for which the Valuation Date
has not yet occurred. 
  
 (aa) “Outstanding Stock
Option” shall mean a Stock Option granted to a Participant that has not yet been exercised and that has not yet expired, been terminated in accordance with its terms or otherwise cancelled or forfeited. 
  
 (bb) “Participant” shall mean any employee, Non-Employee Director
or Advisor who has met the eligibility requirements set forth in Section 1.4 and to whom an Award has been granted under the Plan. 
  
 (cc) “Performance Award” shall mean an Award granted to a Participant that is conditioned in some manner upon the achievement of one or more of
the Performance Goals described in Article VIII. 
  
 (dd)
“Performance Goals” shall have the meaning set forth in Section 8.1. 
  
 (ee) “Permanent Disability” shall have the same meaning as such term or a similar term has in the long-term disability policy maintained by the Company, the parent thereof or a Subsidiary thereof, as
applicable, for the Participant and that is in effect on the date of the onset of the Participant’s Permanent Disability, unless the Committee determines otherwise, in its discretion, and sets forth an alternative definition in the applicable
Agreement; provided, however, with respect to grants of Incentive Stock Options, permanent disability shall have the meaning given it under the rules governing Incentive Stock Options under the Code. With respect to any Grant other
than an Incentive Stock Option, to the extent that a Participant’s employment agreement differs from the Plan with respect to the meaning of disability, if such employment agreement has been approved by the Committee that granted the Stock
Options, the definition included in such employment agreement shall govern. Anything in the Plan to the contrary notwithstanding, “Permanent Disability” is a term that shall apply only to Participants who are employees of the Company.

  

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 (ff) “Phantom Share” shall mean a contractual right granted to a Participant pursuant to
Article VI to receive an amount equal to the Appreciation Value at such time, and subject to such terms and conditions, as are set forth in the Plan and the applicable Agreement. 
  
 (gg) “Plan” shall have the meaning set forth in Section 1.1. 
  
 (hh) “Restricted Share” shall mean a share of Common Stock granted
to a Participant pursuant to Article IV that is subject to the restrictions set forth in Section 4.3 and to such other terms, conditions and restrictions as are set forth in the Plan and the applicable Agreement. 
  
 (ii) “Restricted Share Unit” shall mean a contractual right granted
to a Participant pursuant to Article V to receive, in the discretion of the Committee, a share of Common Stock; a cash payment equal to the Fair Market Value of a share of Common Stock, the Fair Market Value of a share of Class B Common Stock, or a
weighted average of the Fair Market Value of a share of Common Stock and Class B Common Stock (which weighted average may include equal weights for Common Stock and Class B Common Stock); or a combination of Common Stock and cash, subject to the
terms and conditions set forth in the Plan and in the applicable Agreement. 
  
 (jj) “Rule 16b-3” shall mean Rule 16b-3 promulgated under the Exchange Act, as amended from time to time, or any successor provision. 
  
 (kk) “Section 1.5 Limit” shall have the meaning set forth in Section 1.5. 
  
 (ll) “Section 162(m)” shall mean Section 162(m) of the Code and the
regulations promulgated thereunder from time to time. 
  
 (mm)
“Section 162(m) Exception” shall mean the exception under Section 162(m) for “qualified performance-based compensation.” 
  
 (nn) “Stand-Alone Stock Appreciation Right” shall have the meaning set forth in Section 3.3. 
  
 (oo) “Stock Appreciation Right” shall mean a contractual right
granted to a Participant pursuant to Article III to receive a payment equal to the excess of the Fair Market Value of a specified number of shares of Common Stock on the date the right is exercised over a specified exercise price, as determined in
accordance with Article III of the Plan and subject to such other terms and conditions as are set forth in the Plan and in the applicable Agreement. Stock Appreciation Rights may be Tandem Stock Appreciation Rights or Stand-Alone Stock Appreciation
Rights. 
  
 (pp) “Stock Option” shall mean a contractual
right granted to a Participant pursuant to Article II to purchase shares of Common Stock at such time and price, and subject to such other terms and conditions as are set forth in the Plan and in the applicable Agreement. Stock Options may be
Incentive Stock Options or Non-Qualified Stock Options. 
  
 (qq)
“Subsidiary” shall mean a “subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code; provided that, with respect to Awards other than Incentive Stock Options, the term “Subsidiary”
shall also be deemed to include a partnership, limited liability company or other entity in which the Company controls, directly or indirectly, a majority of the voting power or equity interests. 
  
 (rr) “Tandem Stock Appreciation Right” shall have the meaning in
Section 3.2. 
  
 (ss) “Termination for Cause” for
Participants who are employees of the Company and for Advisors, shall mean a termination of service with the Company or any of its Subsidiaries that, as determined by the Committee, is by reason of (i) “cause” as such term or a similar
term is defined in any employment or consulting agreement applicable to the Participant or as is required by the laws of any foreign jurisdiction; or (ii) if there is no such employment or consulting agreement or applicable foreign law or if such
employment or consulting agreement contains no such term, (x) dishonesty, conviction of a felony, or willful unauthorized disclosure of confidential information, (y) failure, neglect of or refusal by a Participant to substantially perform the duties
of such Participant’s service, or (z) any other act or omission that is materially injurious to the financial condition or business reputation of the Company or any Subsidiary thereof. 
  
 (tt) “Termination for Cause” for Participants who are Non-Employee
Directors shall mean removal from the Board for “cause” in accordance with the certificate of incorporation or bylaws of the Company, as amended from time to time. 
  
 (uu) “Valuation Date” shall mean the date on which the Appreciation Value of a Phantom Share shall be measured and
fixed in accordance with Section 6.2(a) hereof. 
  

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 (vv) The “Value” of a Phantom Share shall be determined by reference to the “average Fair
Market Value” of a share of Common Stock. The “average Fair Market Value” on a given date of a share of Common Stock shall be determined over the 30-day period ending on such date or such other period as the Committee may decide shall
be applicable to a Grant of Phantom Shares, determined by dividing (i) by (ii), where (i) shall equal the sum of the Fair Market Values on each day that the Common Stock was traded and a closing price was reported during such period, and (ii) shall
equal the number of days, as determined by the Committee for the purposes of determining the average Fair Market Value for such Phantom Shares, on which the Common Stock was traded and a closing price was reported during such period. 
  
 (ww) To “vest” a Stock Option, Stock Appreciation Right, Restricted
Share, Restricted Share Unit or Phantom Share held by a Participant shall mean, with respect to a Stock Option or Stock Appreciation Right, to render such Stock Option or Stock Appreciation Right exercisable, subject to the terms of the Plan or the
applicable Agreement, and, in the case of a Restricted Share, Restricted Share Unit or Phantom Share, to render such Restricted Share, Restricted Share Unit, or Phantom Share nonforfeitable. 
  
 Section 1.3 Administration of the Plan. 
  
 The Plan shall be administered by the Board or by a committee appointed by
the Board, consisting of at least two members of the Board; provided that (i) with respect to any Grant that is intended to satisfy the requirements of Rule 16b-3, such committee shall consist of at least such number of directors as is
required from time to time by Rule 16b-3, and each such committee member shall satisfy the qualification requirements of such rule; (ii) with respect to any Grant that is intended to satisfy the requirements of the Section 162(m) Exception, such
committee shall consist of at least such number of directors as is required from time to time to satisfy the Section 162(m) Exception, and each such committee member shall satisfy the qualification requirements of such exception; and (iii) to the
extent required under the rules of the stock exchange or automated quotation system on which the Common Stock is listed for trading or quoted, as applicable, each member of the Committee shall satisfy any “independence” requirements of
such exchange or quotation system; provided, however, that, if any such Committee member is found not to have met the qualification requirements set forth in clauses (i) and (ii) above, any actions taken or Awards granted by the Committee
shall not be invalidated by such failure to so qualify. 
  
 The
Committee shall adopt such rules as it may deem appropriate in order to carry out the purposes of the Plan. All questions of interpretation, administration and application of the Plan shall be determined by a majority of the members of the Committee
then in office, except that the Committee may authorize any one or more of its members, or any officer of the Company, to execute and deliver documents on behalf of the Committee. The determination of such majority shall be final and binding as to
all matters relating to the Plan. The Committee shall have authority to select Participants from among the class of eligible persons specified in Section 1.4 and to determine the number of shares of Common Stock subject to an Award or the cash
amount payable in connection with an Award. In addition, the Committee shall have the authority to determine the terms, conditions, restrictions and/or limitations applicable to each Award in accordance with the terms of the Plan; provided,
however, that no member of the Committee shall participate in any decision contemplated by this Section 1.3 if it relates to a Grant made on his or her behalf. The Committee shall also have the authority to amend the terms of any outstanding
Award or waive any conditions or restrictions applicable to any Award; provided, however, that no amendment shall materially impair the rights of the holder thereof without the holder’s consent; and provided further, that, without
the prior approval of the Company’s stockholders, the Committee may not reprice any Stock Option except as may be deemed to occur pursuant to the next paragraph or pursuant to Article IX. With respect to any restriction in the Plan, or to which
any Award is subject, that is based on the requirements of Rule 16b-3, Section 422 of the Code, the Section 162(m) Exception, the rules of any exchange upon which the Company’s securities are listed or automated quotation system upon which the
Company’s securities are quoted, or any other applicable law, rule or restriction, to the extent that any such restriction is no longer required, the Committee shall have the sole discretion and authority to grant Awards that are not subject to
such restriction and/or to waive any such restriction with respect to outstanding Awards. 
  
 Subject to this section 1.3 and Article IX and Article XI, at the discretion of the Committee, a Participant may be offered an election to substitute an Award for another Award or Awards of the same or different type.

  
 Subject to (i) the limitations set forth in this Section 1.3
and (ii) the limitations set forth in the Delaware General Corporation Law, as well as any other laws, rules or regulations that may apply from time to time, the Committee shall have the authority to delegate some or all of its authority under the
Plan to one or more members of the Committee or to one or more officers of the Company. 
  
 Section 1.4 Eligible Persons. 
  
 Grants may be
awarded to any employee, Non-Employee Director or Advisor of the Company or any of its Subsidiaries selected by the Committee; provided that only employees shall be eligible to receive Incentive Stock Options. 
  

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 Section 1.5 Common Stock Subject to the Plan. 
  
 The total aggregate number of shares of Common Stock that may be subject to Awards under the Plan (the “Section 1.5
Limit”) shall be 20,000,000, subject to adjustment pursuant to Article IX hereof. The shares of Common Stock shall be made available from authorized but unissued Common Stock or from Common Stock issued and held in the treasury of the Company.

  
 For purposes of determining the number of shares of Common
Stock that are at any time available for issuance, the following rules shall apply: 
  
 (a) Subject to the provisions of clause (b) below, the number of shares underlying an Award that can be settled in shares of Common Stock shall be counted against the Section 1.5 Limit at the time the Award is
granted. 
  
 (b) To the extent permitted by law, the Code or the
rules of any stock exchange or automated quotation system on which the Common Stock is listed for trading or quoted, as applicable, the following shares underlying Awards shall not be counted against the Section 1.5 Limit and shall again become
immediately available for new Awards under the Plan: (i) shares subject to an Award that for any reason expires or is cancelled, forfeited or terminated without having been exercised or paid; (ii) shares withheld from any Award to satisfy a
Participant’s tax or other withholding obligations or to pay the exercise price of an Award; (iii) shares subject to an Award that is settled in cash; and (iv) shares that are exchanged for an Award that does not involve Common Stock. In
addition, if a Participant tenders shares of Common Stock in payment of the exercise price of an Award or to satisfy the Participant’s tax or other withholding obligations with respect to an Award, only the number of shares of Common Stock
issued net of the number of shares of Common Stock tendered shall be counted against the Section 1.5 Limit. Notwithstanding anything to the contrary in this Section 1.5, if any Award is settled by the Company in whole or in part by delivery of fewer
than the full number of shares of Common Stock subject to such Award, the excess, if any, of the number of shares of Common Stock subject to the Award over the number of shares of Common Stock delivered by the Company to the Participant upon
exercise or settlement shall not be counted against the Section 1.5 Limit and shall again be available for Awards. 
  
 Section 1.6 Limit on Grants to Participants. 
  
 The maximum aggregate number of shares of Common Stock with respect to which an Award may be granted to any Participant during the ten-year period
starting on the Effective Date shall not exceed 7,500,000 (regardless of the form of settlement), subject to adjustment pursuant to Article IX hereof. If a Stock Option is granted in tandem with a Stock Appreciation Right, such that the exercise of
the Stock Option or Stock Appreciation Right cancels the Tandem Stock Appreciation Right or Stock Option right, respectively, the Tandem Stock Option and Stock Appreciation Rights with respect to each share of Common Stock shall be counted as
covering but one share of Common Stock for purposes of the 7,500,000 share limit. Any Restricted Share Units that are settled in cash based in whole or in part on the Fair Market Value of Class B Common Stock shall be counted for purposes of the
7,500,000 share limit. 
  
 Section 1.7 Agreements. 
  
 Each Agreement shall (i) state the Date of Grant and the name of the
Participant; (ii) specify the terms of the Grant; (iii) be signed by a person designated by the Committee and accepted by the Participant in such manner as may be required by the Committee; (iv) incorporate the Plan by reference; and (v) be
delivered or otherwise made available to the Participant (including by electronic means). The Agreement shall contain such other terms and conditions as are required by the Plan and, in addition, such other terms not inconsistent with the Plan as
the Committee, in its sole discretion, may deem advisable, including without limitation and by way of example, terms providing for forfeiture upon a Participant’s noncompliance any noncompetition agreement and terms providing for accelerated
vesting in connection with a change in control of the Company. With respect to Awards granted to persons outside of the United States, the Committee shall have the authority to grant Awards upon such terms as the Committee deems appropriate and
advisable (i) to take into account the laws of the applicable jurisdiction and/or (ii) to obtain more favorable tax treatment for the Company and/or any Subsidiary, as applicable, and/or for the Participants in such jurisdiction. To that end, to the
extent permitted by law and the rules of any stock exchange or automated quotation system upon which the Common Stock is listed or quoted, the Committee may establish modified option exercise procedures and other terms and procedures. Such authority
shall be notwithstanding the fact that the requirements of the local jurisdiction may be more or less restrictive than the terms set forth in the Plan. 
  
 ARTICLE II 
  
 STOCK OPTIONS 
  
 Section 2.1 Grants of Stock Options. 
  
 The
Committee may from time to time grant Stock Options on the terms and conditions set forth in the Plan, and on such other terms and conditions as are not inconsistent with the purposes and provisions of the Plan, as the Committee, in its sole
discretion, may from time to time determine, including the satisfaction of any Performance Goal requirements established by the Committee. Each 
  

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 Agreement covering a Grant of Stock Options shall specify (i) the number of Stock Options granted; (ii) the Date of
Grant; (iii) the exercise price of such Stock Options; (iv) whether such Stock Options are Incentive Stock Options or Non-Qualified Stock Options; (v) the period during which such Stock Options may be exercised and any vesting schedule applicable to
such Stock Options, including any applicable Performance Goals; and (vi) any other terms that the Committee deems appropriate. Any Stock Option intended to qualify as an Incentive Stock Option that fails to so qualify shall be deemed a Non-Qualified
Stock Option. 
  
 Section 2.2 Exercise Price. 
  
 The Committee shall establish the per share exercise price at the time any
Stock Option is granted; provided that, such exercise price shall not be less than 100% of the Fair Market Value of a share of Common Stock on the Date of Grant; and provided further, that, with respect to any Incentive Stock Option
that is granted to a person holding more than 10% of the combined voting power of all the classes of common stock of the Company (or its parent or any subsidiaries within the meaning of Section 424(f) the Code), such exercise price shall not be less
than 110% of the Fair Market Value of a share of Common Stock on the Date of Grant. The exercise price of any Stock Option will be subject to adjustment in accordance with the provisions of Article IX of the Plan. 
  
 Section 2.3 Exercise of Stock Options. 
  
 (a) Exercisability. Stock Options shall be exercisable only to the
extent the Participant is vested therein, subject to any restrictions that the Committee shall determine and specify in the applicable Agreement (or in any employment or consulting agreement applicable to the Participant). A Participant shall vest
in Stock Options over such time and in such increments as the Committee shall determine and specify in a vesting schedule set forth in the applicable Agreement (or in any employment or consulting agreement applicable to the Participant). The
Committee may, however, in its sole discretion, accelerate the time at which a Participant vests in his or her Stock Options; provided that, the Committee may not, without the Participant’s consent, accelerate any Incentive Stock Option
if such acceleration would disqualify such Stock Option as an Incentive Stock Option. 
  
 (b) Option Period. For each Stock Option granted, the Committee shall specify the period during which the Stock Option may be exercised; provided, however, that anything in the Plan or in the
applicable Agreement to the contrary notwithstanding: 
  
 (i) Latest Exercise Date. No Stock Option granted under the Plan shall be exercisable after the tenth anniversary of the Date of Grant thereof. 
  

(ii) Registration Restrictions. A Stock Option shall not be exercisable, no transfer of shares of Common Stock shall be made to
any Participant, and any attempt to exercise a Stock Option or to transfer any such shares shall be void and of no effect, unless and until (A) a registration statement under the Securities Act of 1933, as amended, has been duly filed and declared
effective pertaining to the shares of Common Stock subject to such Stock Option, and the shares of Common Stock subject to such Stock Option have been duly qualified under applicable federal or state securities or blue sky laws; or (B) the
Committee, in its sole discretion, determines, or the Participant, upon the request of the Committee, provides an opinion of counsel satisfactory to the Committee, that such registration or qualification is not required as a result of the
availability of an exemption from registration or qualification under such laws. Without limiting the foregoing, if at any time the Committee shall determine, in its sole discretion, that the listing, registration or qualification of the shares of
Common Stock subject to such Stock Option is required under any federal or state law or by any securities exchange, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection with,
the delivery or purchase of such shares pursuant to the exercise of a Stock Option, such Stock Option shall not be exercisable in whole or in part unless and until such listing, registration, qualification, consent or approval shall have been
effected or obtained free of any conditions not acceptable to the Committee. 
  
 (c) Exercise in the Event of Termination of Service for Participants Other Than Non-Employee Directors. Unless otherwise permitted by the Committee, in its sole discretion, in the event of the termination of
service of a Participant other than a Non-Employee Director, such Participant’s Stock Option shall be exercisable as follows: 
  
 (i) Termination of Service Other Than a Termination for Cause or Due to Death or Permanent Disability. In the event that (A) such
Participant’s service with the Company or any of its Subsidiaries ends by reason of a voluntary termination by the Participant or due to termination by the Company or any of its Subsidiaries other than due to a Termination for Cause, the
Participant’s Outstanding Stock Options may be exercised, to the extent then exercisable, for a period of six months after the date of termination (three months in the case of Incentive Stock Options) or such longer period as may be determined
by the Committee, in its sole discretion; (B) such Participant dies during a period during which his Stock Options could have been exercised by him, his Outstanding Stock Options may be exercised, to the extent exercisable at the date of death, by
the person who acquired the right to exercise such Stock Options by will or the laws of descent and distribution or intestacy, or by any permitted transfer, for a period of twelve months following the date of death or such longer period as may be
determined by the Committee, in its sole discretion; or (C) the Permanent Disability of such Participant occurs, his or her Outstanding Stock Options may be exercised, to the extent exercisable upon the date of the onset of such Permanent
Disability, for a period of 
  

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 twelve months following such date or such longer period as may be determined by the Committee, in its
sole discretion. Upon the occurrence of an event described in clause (A), (B) or (C) of this Section 2.3(c)(i), all rights with respect to Stock Options that are not vested as of such event will be relinquished. 
  
 (ii) Termination for Cause. If a Participant’s
service with the Company or any of its Subsidiaries ends due to a Termination for Cause, then, unless the Committee in its sole discretion determines otherwise, all Outstanding Stock Options, whether or not then vested, shall terminate effective as
of the date of such termination. 
  
 (iii)
Maximum Exercise Period. Anything in this Section 2.3(c) to the contrary notwithstanding, no Stock Option shall be exercisable after the earlier to occur of (A) the expiration of the option period set forth in the applicable Agreement or (B)
the tenth anniversary of the Date of Grant thereof. 
  
 (d)
Exercise in the Event of Termination of Service for Participants Who are Non-Employee Directors. Unless otherwise permitted by the Committee, in its sole discretion, in the event of the termination of service of a Non-Employee Director, such
Non-Employee Director’s Stock Option shall be exercisable as follows: 
  
 (i) Termination of Service for Any Reason Other Than a Termination for Cause. In the event that a Non-Employee Director ceases to be a member of the Board for any reason other than due to a Termination for
Cause, the Non-Employee Director may exercise any Outstanding Stock Options for a period of twelve months following the date of such termination, or for such longer period as may be determined by the Committee in its sole discretion, but only to the
extent such Outstanding Stock Options were vested on the date of such termination (unless the Committee determines otherwise in its discretion). The Non-Employee Director shall relinquish all rights with respect to Stock Options that are not vested
as of the date of such termination of service. 
  
 (ii) Termination for Cause. In the event that a Non-Employee Director ceases to be a member of the Board due to a Termination for Cause then, unless the Committee, in its sole discretion, determines otherwise, all Outstanding Stock
Options, whether or not then vested, shall terminate effective as of the date of such termination. 
  
 (iii) Maximum Exercise Period. Anything in this Section 2.3(d) to the contrary notwithstanding, no Stock Option shall be
exercisable after the earlier to occur of (A) the expiration of the option period set forth in the applicable Agreement or (B) the tenth anniversary of the Date of Grant thereof. 
  
 Section 2.4 Payment of Purchase Price Upon Exercise. 
  
 The exercise price of a Stock Option shall be paid as follows: (i) in cash or by certified check, bank draft or money order
made payable to the order of the Company; (ii) in the discretion of the Committee, in shares of Common Stock (provided that the Committee may require that such shares of Common Stock have been held for at least six months by the Participant) or
other securities of the Company designated by the Committee valued at their Fair Market Value on the date of exercise of the Stock Option; (iii) in a combination of cash, shares or such other securities; (iv) by delivery (including by fax or
electronic means in accordance with the procedures determined by the Committee) to the Company or its designated agent of an irrevocable option exercise notice together with irrevocable instructions from the Participant to a broker or dealer,
reasonably acceptable to the Company, to sell certain shares of Common Stock purchased upon exercise of a Stock Option or to pledge such shares as collateral for a loan and promptly deliver to the Company the amount of sale or loan proceeds
necessary to pay the exercise price for the Stock Option (provided that, with respect to such a cashless exercise, the Stock Option shall be deemed exercised on the date of sale of the shares of Common Stock received upon exercise); and/or
(v) in any other form of valid consideration that is acceptable to the Committee in its sole discretion. 
  

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 ARTICLE III 
  
 STOCK APPRECIATION RIGHTS 
  
 Section 3.1 Grants of Stock Appreciation Rights Generally. 
  
 The Committee may from time to time grant Stock Appreciation Rights on the terms and conditions set forth in the Plan, and on such other terms and
conditions as are not inconsistent with the purposes and provisions of the Plan, as the Committee, in its sole discretion, may from time to time determine, including the satisfaction of any Performance Goal requirements established by the Committee.
The Committee may grant Stock Appreciation Rights in tandem with Stock Options (a “Tandem Stock Appreciation Right”) or not in tandem with Stock Options (a “Stand-Alone Stock Appreciation Right”). Each Agreement covering a Grant
of Stock Appreciation Rights (or, if applicable, the Agreement covering the related Stock Options) shall specify (i) the number of Stock Appreciation Rights granted; (ii) the Date of Grant; (iii) the exercise price of such Stock Appreciation Rights;
(iv) the period during which such Stock Appreciation Rights may be exercised and any vesting schedule applicable to such Stock Appreciation Rights, including any applicable Performance Goals; and (v) any other terms that the Committee deems
appropriate. 
  
 Section 3.2 Stock Appreciation Rights Granted in Tandem with
Stock Options. 
  
 If a Stock Appreciation Right is granted
in tandem with a Stock Option, such Stock Appreciation Right may be granted at the same time as, or, in the case of a Non-Qualified Stock Option, subsequent to, the time that its related Stock Option is granted. The Stock Appreciation Right shall be
subject to the same terms and conditions as the related Stock Option and shall be exercisable only at such times and to such extent as the related Stock Option is exercisable. A Stock Appreciation Right granted in tandem with a Stock Option shall
entitle the holder either 
  
 (i) to exercise the
related Stock Option with respect to all or a portion of the vested shares underlying such Stock Option; or 
  
 (ii) to exercise the Stock Appreciation Right by surrendering to the Company all or a portion of the related Stock Option (to the extent
vested), in which case the holder shall be entitled to receive from the Company in exchange therefor an amount equal to the excess of the Fair Market Value of the shares of Common Stock underlying the surrendered portion of such Stock Option
(determined as of the day preceding the surrender of such Stock Option) over the aggregate Stock Option exercise price for such shares. 
  
 The exercise of a Tandem Stock Appreciation Right shall cause the immediate and automatic cancellation of its related Stock Option with respect to the
number of shares underlying the surrendered portion of the Stock Option. Likewise, the exercise of the related Stock Option shall cause the immediate and automatic cancellation of the Tandem Stock Appreciation Right with respect to the number of
shares underlying the surrendered portion of the Tandem Stock Appreciation Right. Payment by the Company upon a Participant’s exercise of a Stock Appreciation Right shall be made in cash or, in the discretion of the Committee, in shares of
Common Stock or other securities of the Company designated by the Committee, or in a combination of cash, shares or such other securities. In the event such amount is paid in shares of Common Stock or other securities of the Company, one or more
stock certificates for the appropriate number of shares of Common Stock or other securities shall be delivered to the Participant or such shares shall be credited to a brokerage account if the Participant so directs; provided, however, that
any certificates shall bear such legends as the Committee, in its sole discretion, may determine to be necessary or advisable in order to comply with applicable federal or state securities laws. 
  
 Section 3.3 Stand-Alone Stock Appreciation Rights. 
  
 The Committee may grant Stand-Alone Stock Appreciation Rights on the terms
and conditions set forth in the Plan and on such other terms and conditions as the Committee shall establish at the time of grant, including the satisfaction of any Performance Goal requirements established by the Committee. The Committee shall
establish an exercise price at the time any Stand-Alone Stock Appreciation Right is granted; provided that, such exercise price shall not be less than 100% of the Fair Market Value of a share of Common Stock on the Date of Grant. A
Stand-Alone Stock Appreciation Right shall entitle the holder thereof to receive from the Company an amount equal to the excess of the Fair Market Value of a share of Common Stock on the exercise date over the exercise price for the Stock
Appreciation Right multiplied by the number of rights exercised. The exercise price of any Stock Appreciation Right will be subject to adjustment in accordance with the provisions of Article IX. 
  
 Stand-Alone Stock Appreciation Rights shall be exercisable only to the extent
the Participant is vested therein, subject to any restrictions that the Committee shall determine and specify in the applicable Agreement (or in any employment or consulting agreement applicable to the Participant). A Participant shall vest in
Stand-Alone Stock Appreciation Rights over such time and in such increments as the Committee shall determine and specify in a vesting schedule set forth in the applicable Agreement (or in any employment or consulting agreement applicable to the
Participant). The Committee may, however, accelerate the time at which a Participant vests in his or her Stand-Alone Stock Appreciation Rights. 
  

 8 

 Section 3.4 Registration Restrictions and Rights in the Event of Termination of Service. 
  
 The provisions of Sections 2.3(b) and (c) (relating to latest exercise date,
registration restrictions and exercise in the event of termination of service) shall apply equally to Awards of Stock Appreciation Rights. 
  
 ARTICLE IV 
  
 RESTRICTED SHARES AND UNRESTRICTED SHARE GRANTS 
  
 Section 4.1 Grants of Restricted Shares. 
  
 The Committee may from time to time grant Restricted Shares on the terms and conditions set forth in the Plan, and on such other terms and conditions as are not inconsistent with the purposes and provisions of the
Plan, as the Committee, in its sole discretion, may from time to time determine, including the satisfaction of any Performance Goal requirements established by the Committee. Each Agreement covering a Grant of Restricted Shares shall specify (i) the
number of Restricted Shares granted; (ii) the Date of Grant; (iii) the price, if any, to be paid by the Participant for such Restricted Shares; (iv) the vesting schedule (as provided for in Section 4.2 hereof) applicable to such Restricted Shares,
including any applicable Performance Goals or other criteria that the Committee determines must be satisfied in order to remove any restrictions with respect to such Award; and (v) any other terms that the Committee deems appropriate. 
  
 Section 4.2 Vesting. 
  
 The Committee shall establish the vesting schedule applicable to Restricted Shares granted hereunder, which vesting schedule
shall specify the period(s) of time within which such Award may be subject to forfeiture, including any applicable Performance Goal requirements or other restrictions that the Committee shall determine and specify in the applicable Agreement (or in
any employment or consulting agreement applicable to the Participant). 
  
 Section 4.3 Rights and Restrictions Governing Restricted Shares. 
  
 As of the Date of Grant of Restricted Shares, the appropriate number of shares of Common Stock granted to a Participant shall be registered in the Participant’s name or otherwise credited to the Participant, but
shall be held by the Company for the account of the Participant. The Participant shall have, with respect to his or her Restricted Shares, all rights of a stockholder as to such Restricted Shares of Common Stock (including, to the extent applicable,
the right to vote and to receive dividends or other distributions made or paid with respect to such shares), subject to the following restrictions: (i) the Participant shall not be entitled to delivery of such shares of Common Stock until such
shares have vested; (ii) none of the Restricted Shares may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of until such shares have vested; and (iii) except as otherwise provided in Section 4.6, all unvested Restricted
Shares shall be immediately forfeited upon a Participant’s termination of service with the Company or any Subsidiary for any reason. The Committee, in its sole discretion, may provide that any dividends or other distributions that are paid in
shares shall be subject to the same restrictions as the Restricted Shares with respect to which such dividends or other distributions are made. 
  
 Section 4.4 Adjustment with Respect to Restricted Shares. 
  
 Any other provision of the Plan to the contrary notwithstanding, the Committee may, in its sole discretion, at any time accelerate the date or dates on
which Restricted Shares vest. The Committee may, in its sole discretion, remove any and all restrictions on such Restricted Shares whenever it may determine that, by reason of changes in applicable law, the rules of any stock exchange or automated
quotation system on which the Common Stock is listed or quoted or other changes in circumstances arising after the Date of Grant, such action is appropriate. 
  
 Section 4.5 Delivery of Restricted Shares. 
  
 On the date on which Restricted Shares vest, all restrictions contained in the Agreement covering such Restricted Shares and in the Plan shall lapse as to
such Restricted Shares. One or more stock certificates for the appropriate number of shares of Common Stock, free of the restrictions set forth in the Plan and applicable Agreement, shall be delivered to the Participant or such shares shall be
credited to a brokerage account if the Participant so directs; provided, however, that any certificates shall bear such legends as the Committee, in its sole discretion, may determine to be necessary or advisable in order to comply
with applicable federal or state securities laws. 
  

 9 

 Section 4.6 Termination of Service. 
  
 In the event that the Participant’s service with the Company or any of its Subsidiaries ends for any reason prior to
the date or dates on which Restricted Shares vest, the Participant shall forfeit all unvested Restricted Shares as of the date of such event, unless the Committee determines that the circumstances in the particular case so warrant and provides that
some or all of such Participant’s unvested Restricted Shares shall vest as of the date of such event, in which case such shares shall be delivered, in accordance with Section 4.5, to the Participant or in the case of the Participant’s
death, to the person or persons who acquired the right to receive such certificates by will or the laws of descent and distribution. 
  
 Section 4.7 Unrestricted Share Grants. 
  
 The Committee may, in its sole discretion, make Awards of unrestricted Common Stock in recognition of outstanding achievements and performance or for any
other reason that it deems appropriate. 
  
 ARTICLE V

  
 RESTRICTED SHARE UNITS 
  
 Section 5.1 Grants of Restricted Share Units. 
  
 The Committee may from time to time grant Restricted Share Units on the
terms and conditions set forth in the Plan, and on such other terms and conditions as are not inconsistent with the purposes and provisions of the Plan, as the Committee, in its sole discretion, may from time to time determine, including the
satisfaction of any Performance Goal requirements established by the Committee. Each Restricted Share Unit awarded to a Participant shall correspond to one share of Common Stock. Each Agreement covering a Grant of Restricted Share Units shall
specify (i) the number of Restricted Share Units granted; (ii) the Date of Grant; (iii) the price, if any, to be paid by the Participant for such Restricted Share Units; (iv) the vesting schedule (as provided for in Section 5.2 hereof) applicable to
such Restricted Share Units, including any applicable Performance Goals or other criteria that the Committee determines must be satisfied in order to remove any restrictions with respect to such Award; and (v) any other terms that the Committee
deems appropriate. 
  
 Section 5.2 Vesting. 
  
 The Committee shall establish the vesting schedule applicable to Restricted
Share Units granted hereunder, which vesting schedule shall specify the periods of time within which such Award may be subject to forfeiture, including any applicable Performance Goal requirements or other restrictions that the Committee shall
determine and specify in the applicable Agreement (or in any employment or consulting agreement applicable to the Participant). 
  
 Section 5.3 Adjustment with Respect to Restricted Share Units. 
  
 Any other provision of the Plan to the contrary notwithstanding, the Committee may, in its sole discretion, at any time accelerate the date or dates on
which Restricted Share Units vest. 
  
 Section 5.4 Settlement of Restricted
Share Units. 
  
 On the date on which Restricted Share Units
vest, or at such other times as the Committee shall determine, all restrictions contained in the Agreement covering such Restricted Share Units and in the Plan shall lapse as to such Restricted Share Units and the Restricted Share Units will be
payable, in the sole discretion of the Committee, (i) in Common Stock; (ii) in cash equal to the number of shares of Common Stock subject to such Restricted Share Units multiplied by the Fair Market Value of (a) a share of Common Stock, (b) a share
of Class B Common Stock, or (c) by a weighted average of the Fair Market Value of (a) and (b), which weighted average may include equal weights for Common Stock and Class B Common Stock; or (iii) in a combination of Common Stock and cash. In the
event the Restricted Share Units are paid in Common Stock, one or more stock certificates for the appropriate number of shares of Common Stock, free of the restrictions set forth in the Plan and applicable Agreement, shall be delivered to the
Participant or such shares shall be credited to a brokerage account if the Participant so directs; provided, however, that any certificates shall bear such legends as the Committee, in its sole discretion, may determine to be necessary
or advisable in order to comply with applicable federal or state securities laws. 
  
 Section 5.5 Termination of Service. 
  
 In the
event that the Participant’s service with the Company or any of its Subsidiaries ends for any reason prior to the date or dates on which Restricted Share Units vest, the Participant shall forfeit all unvested Restricted Share Units as of the
date of such event, unless the Committee determines that the circumstances in the particular case so warrant and provides that some or all of such Participant’s unvested Restricted Share Units shall vest as of the date of such event, in which
case, in the discretion of the Committee, 
  

 10 

 either certificates representing shares of Common Stock or a cash payment equal to the shares of Common Stock multiplied
by the Fair Market Value of a share of Common Stock or Class B Common Stock or by a weighted average of the Fair Market Value of a share of Common Stock and Class B Common Stock (which weighted average may include equal weights for Common Stock and
Class B Common Stock), or a combination of cash and shares, shall be delivered in accordance with Section 5.4, to the Participant or, in the case of the Participant’s death, to the person or persons who acquired the right to receive such
certificates by will or the laws of descent and distribution. 
  
 ARTICLE VI 
  
 PHANTOM SHARES 

 
 Section 6.1 Grants of Phantom Shares. 
  
 The Committee may from time to time grant Phantom Shares, the value of which
shall be determined by reference to a share of Common Stock, on the terms and conditions set forth in the Plan and on such other terms and conditions as are not inconsistent with the purposes and provisions of the Plan as the Committee, in its sole
discretion, may from time to time determine, including the satisfaction of any Performance Goal requirements established by the Committee. Each Agreement covering a Grant of Phantom Shares shall specify the (i) number of Phantom Shares granted; (ii)
the Date of Grant; (iii) the Initial Value of such Phantom Shares; (iv) the Valuation Date(s); (v) the number of Phantom Shares whose Appreciation Value shall be determined on each such Valuation Date; (vi) any vesting schedule (as provided for in
Section 6.3 hereof) applicable to such Phantom Shares, including any applicable Performance Goals; (vii) any applicable limitation on payment (as provided for in Section 6.4 hereof) for such Phantom Shares; and (viii) any other terms that the
Committee deems appropriate. 
  
 Section 6.2 Appreciation Value.

  
 (a) Valuation Dates; Measurement of Appreciation
Value. The Committee shall provide in the Agreement for one or more Valuation Dates on which the Appreciation Value of the Phantom Shares granted pursuant to the Agreement shall be measured and fixed, and shall designate in the Agreement the
number of such Phantom Shares whose Appreciation Value is to be calculated on each such Valuation Date. 
  
 (b) Payment of Appreciation Value. Except as otherwise provided in Section 6.5, and subject to the limitation contained in Section 6.4, the
Appreciation Value of a Phantom Share shall be paid to a Participant in cash in a lump sum as soon as practicable following the Valuation Date applicable to such Phantom Share. 
  
 Section 6.3 Vesting. 
  
 The Committee may, in its sole discretion, provide in the Agreement that Phantom Shares granted thereunder shall vest (subject to such terms and
conditions as the Committee may provide in the Agreement) over such period of time from the Date of Grant as may be specified in a vesting schedule contained therein. 
  
 Section 6.4 Limitation on Payment. 
  
 The Committee may, in its sole discretion, establish and set forth in the Agreement a maximum dollar amount payable under the Plan for each Phantom Share
granted pursuant to such Agreement. 
  
 Section 6.5 Termination of Service,
Death or Permanent Disability. 
  
 Unless otherwise permitted
by the Committee, in its sole discretion, in the event of the termination of service of a Participant, the following provisions shall apply: 
  
 (a) Termination of Service Other Than a Termination for Cause or Due to Death or Permanent Disability. If, before the occurrence of one or more
Valuation Dates applicable to the Participant’s Outstanding Phantom Shares, the Participant’s service with the Company or any of its Subsidiaries ends by reason of (i) a voluntary termination by the Participant or a termination of the
Participant’s service by the Company or any of its Subsidiaries other than due to a Termination for Cause; or (ii) the Participant’s death or, in the case of a Participant who is an employee, the Participant’s Permanent Disability,
then, unless the Committee, in its sole discretion, determines otherwise, the Appreciation Value of each Outstanding Phantom Share as to which the Participant’s rights are vested as of the date of such event shall be the lesser of (x) the
Appreciation Value of such Phantom Share calculated as of the date of such event or (y) the Appreciation Value of such Phantom Share calculated as of the originally scheduled Valuation Date applicable thereto. Unless the Committee, in its sole
discretion determines otherwise, the Appreciation Value so determined for each such vested Outstanding Phantom Share shall then be payable to the Participant or the Participant’s estate following the originally scheduled Valuation Date
applicable thereto in accordance with Section 6.2(b). Upon the occurrence of an event described in this Section 6.5(a), all rights with respect to Phantom Shares that are not vested as of such date will be relinquished. 
  

 11 

 (b) Termination for Cause. If a Participant’s service with the Company or any of its
Subsidiaries ends due to a Termination for Cause, then, unless the Committee, in its sole discretion, determines otherwise, all Outstanding Phantom Shares, whether or not vested, and any and all rights to the payment of Appreciation Value with
respect to such Outstanding Phantom Shares shall be forfeited effective as of the date of such termination. 
  
 ARTICLE VII 
  
 DIVIDEND EQUIVALENTS 
  
 The Committee shall have
the authority to grant Dividend Equivalents as part of any Award granted hereunder, subject to such terms, conditions, restrictions and/or limitations, if any, as the Committee may establish. The grant of a Dividend Equivalent may be made at the
time of the grant of the related Award or at any time thereafter up to the time of payment of such Award. Payments in respect of Dividend Equivalents may be made in cash, or, in the discretion of the Committee, in shares of Common Stock or other
securities of the Company designated by the Committee, or in a combination of cash, shares of Common Stock or such other securities. The Committee may provide that Dividend Equivalents be paid or distributed when accrued or be deemed to have been
reinvested in additional shares of Common Stock or otherwise reinvested. 
  
 ARTICLE VIII 
  
 PERFORMANCE GOALS

  
 Section 8.1 Terms. 
  
 The grant, vesting and/or exercisability of any Award may, in the
Committee’s sole discretion, be conditioned, in whole or in part, on the attainment of performance targets related to one or more Performance Goals over a performance period. 
  
 (a) Grants that are not intended to qualify for the Section 162(m) Exception may be based on the achievement of such goals
and be subject to such terms, conditions and restrictions as the Committee shall determine. 
  
 (b) Grants that are intended to qualify for the Section 162(m) Exception based on the satisfaction of one or more Performance Goals shall be conditioned on the achievement during a specified performance period, of
specified levels of one or more of the following measures: operating income; Adjusted Operating Income; income before income taxes; Adjusted Income Before Income Taxes; net income; Adjusted Net Income; OIBDA; earnings per share; revenues; net
revenues; Free Cash Flow; net income from continuing operations; total stockholder return; share price; return on equity; return in excess of cost of capital; profit in excess of cost of capital; return on assets; return on invested capital; net
operating profit after tax; operating margin; gross margin; or any combination thereof. A “performance period” shall be a calendar year or other fiscal year of the Company or other longer or shorter period designated by the Committee. The
Committee shall establish the Performance Goals related to an Award for each performance period not later than ninety days after the start of such period; provided, however, that, Performance Goals shall in no event be established after 25%
of a performance period has elapsed. 
  
 Performance Goals may be
described in terms of objectives that are related to the individual Participant or objectives that are Company-wide or related to a Subsidiary, division, department, region, function or business unit and may be measured on an absolute or cumulative
basis, and may be measured in terms of Company performance (or performance of the applicable Subsidiary, division, department, region, function or business unit) or measured relative to selected peer companies or a market index. 
  
 Section 8.2 Determination of Awards. 
  
 Prior to payment with respect to any Award that has been conditioned upon
achievement of a Performance Goal intended to qualify for the Section 162(m) Exception, the Committee shall certify whether the Performance Goal(s) have been achieved in the manner required by Section 162(m) of the Code. The Committee may, in its
sole discretion, reduce any Award below the maximum amount that could be paid based on the degree to which the Performance Goal(s) related to such Award have been achieved. The Committee may not increase any Award intended to qualify for the Section
162(m) Exception in any manner that would adversely affect the treatment of the Award under the Section 162(m) Exception. 
  
 Section 8.3 Adjustment of Calculation of Performance Goals. 
  
 In the event that, during any Performance Period, any recapitalization, reorganization, merger, acquisition, divestiture, consolidation, spin-off,
combination, liquidation, dissolution, sale of assets or other similar corporate transaction or event, or any other 
  

 12 

 extraordinary event or circumstance occurs that has the effect, as determined by the Committee, in its sole and absolute
discretion, of distorting the applicable performance criteria, including, without limitation, changes in accounting standards, the Committee may, to the extent consistent with Section 162(m) of the Code, adjust or modify, as determined by the
Committee, in its sole and absolute discretion, the calculation of the Performance Goals, to the extent necessary to prevent reduction or enlargement of the Participants’ Awards under the Plan for such performance period attributable to such
transaction, circumstance or event. All determinations that the Committee makes pursuant to this Section 8.3 shall be conclusive and binding on all persons for all purposes. 
  
 ARTICLE IX 
  
 EFFECT OF CERTAIN CORPORATE CHANGES. 
  
 In the event of any subdivision or consolidation of outstanding shares of Common Stock, declaration of a dividend payable in shares of Common Stock or
other stock split, then (i) the number of shares of Common Stock reserved under the Plan and available for issuance pursuant to Awards, (ii) the number of shares of Common Stock covered by outstanding Awards, (iii) the exercise price or other price
in respect of outstanding Awards, (iv) the appropriate Fair Market Value and other price determinations for outstanding Awards and (v) the maximum number of shares of Common Stock referred to in Sections 1.5 and 1.6 of the Plan shall each be
proportionately adjusted by the Committee as appropriate to reflect such transaction. 
  
 In the event of any other recapitalization or capital reorganization of the Company, any consolidation or merger of the Company with another corporation or entity, the adoption by the Company of any plan of exchange
affecting Common Stock, or any distribution to holders of Common Stock or securities or property (including cash dividends that the Committee determines are not in the ordinary course of business but excluding normal cash dividends or dividends
payable in Common Stock), the Committee shall make appropriate adjustments to (x) the number of shares of Common Stock reserved under this Plan and (y)(i) the number of shares of Common Stock covered by Awards, (ii) the Exercise Price or other price
in respect of such Awards, (iii) the appropriate Fair Market Value and other price determinations for such Awards, and (iv) the maximum number of shares of Common Stock referred to in Sections 1.5 and 1.6 of this Plan to reflect such transaction;
provided that such adjustments shall only be such as are necessary to maintain the proportionate interest of the holders of the Awards and preserve, without increasing, the value of such Awards. 
  
 In the event of a corporate merger, consolidation, acquisition of property or
stock, separation, reorganization or liquidation, the Committee shall be authorized (x) to assume under the Plan previously issued compensatory Awards, or to substitute new Awards for previously issued compensatory Awards as part of such adjustment;
(y) to cancel Awards that are Stock Options or Stock Appreciation Rights and give the Participants who are the holders of such Awards notice and opportunity to exercise for 30 days prior to such cancellation; or (z) to cancel any such Awards and to
deliver to the Participants cash in an amount that the Committee shall determine in its sole discretion is equal to the Fair Market Value of such Awards on the date of such event, which in the case of Stock Options or Stock Appreciation Rights shall
be the excess of the Fair Market Value of Common Stock on such date over the exercise or strike price of such Awards. 
  
 ARTICLE X 
  
 MISCELLANEOUS 
  
 Section 10.1 No Rights to Grants or Continued Service. 
  
 Neither the adoption of this Plan nor any action of the Board or the Committee shall be deemed to give any person any right to be granted an Award or any other rights except as may be evidenced by an Agreement, or any amendment thereto,
duly authorized by the Committee and executed on behalf of the Company, and then only to the extent and upon the terms and conditions expressly set forth therein. Neither the Plan nor any action taken hereunder shall be construed as giving any
employee, Non-Employee Director or Advisor any right to be retained by the Company or any of its Subsidiaries nor the right to be nominated, re-elected or retained as a member of the Board for any period of time or at any particular rate of
compensation. 
  
 Section 10.2 Restriction on Transfer. 
  
 Except as otherwise provided by the Committee, the rights of a Participant
with respect to any Award shall not be transferable by the Participant to whom the Award is granted, except by will or the laws of descent and distribution. 
  
 Section 10.3 Taxes. 
  
 The Company or a Subsidiary thereof, as appropriate, is authorized to withhold from all payments made under the Plan to a Participant or to a
Participant’s estate any federal, state, local or other taxes required by law to be withheld with respect to such payments. This authority shall include the authority to withhold or receive Common Stock or other property and to make cash
payments in respect thereof in satisfaction of a Participant’s tax obligations, either on a mandatory or elective basis in the discretion of 
  

 13 

 the Committee. The Committee, in its sole discretion, may require, as a condition to the exercise of any Stock Option or
Stock Appreciation Right or delivery of any shares of Common Stock, that an additional amount be paid in cash equal to the amount of any federal, state, local or other taxes owed as a result of such exercise. Any Participant who makes an election
under Section 83(b) of the Code to have his or her receipt of shares of Restricted Stock taxed in accordance with such election must give notice to the Company of such election immediately upon making a valid election in accordance with the rules
and regulations of the Code. Any such election must be made in accordance with the rules and regulations of the Code. 
  
 Section 10.4 Stockholder Rights. 
  
 No Grant under the Plan shall entitle a Participant or a Participant’s estate or permitted transferee to any rights of a holder of shares of Common
Stock, except as provided in Article IV with respect to Restricted Shares or when and until shares are delivered upon exercise of a Stock Option or when and until shares are delivered in settlement of a Stock Appreciation Right or a Restricted Share
Unit; provided that, notwithstanding the foregoing, the Committee in its sole discretion may determine that any Award shall entitle its holder to rights equivalent to those of a holder of shares of Common Stock. 
  
 Section 10.5 No Restriction on Right of Company to Effect Corporate Changes.

  
 The Plan shall not affect in any way the right or power
of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issue
of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stock whose rights are superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable for
Common Stock, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise. 
  
 Section 10.6 Source of Payments. 
  
 The general funds of the Company shall be the sole source of cash
settlements of Stock Appreciation Rights or Restricted Share Units under the Plan and payments of Appreciation Value and the Company shall not have any obligation to establish any separate fund or trust or other segregation of assets to provide for
payments under the Plan. Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship, between the Company and a Participant or any other
person. To the extent a person acquires any rights to receive payments hereunder from the Company, such rights shall be no greater than those of an unsecured creditor. 
  
 ARTICLE XI 
  
 AMENDMENT AND TERMINATION 
  
 The Plan may be terminated and may be altered, amended, suspended or terminated at any time, in whole or in part, by the Board; provided, however,
that no alteration or amendment will be effective without stockholder approval if such approval is required by law or under the rules of the New York Stock Exchange, the NASDAQ Stock Market or any other stock exchange or automated quotation system
on which the Common Stock is listed or quoted. No termination or amendment of the Plan may, without the consent of the Participant to whom a grant has been made, adversely affect the rights of such Participant in the Awards covered by such Grant.
Unless previously terminated pursuant to this Article XI, the Plan shall terminate on the tenth anniversary of the Effective Date, and no further Grants may be awarded hereunder after such date. 
  
 ARTICLE XII 
  
 INTERPRETATION 
  
 Section 12.1 Governmental Regulations. 
  
 The Plan, and all Grants hereunder, shall be subject to all applicable rules
and regulations of governmental or other authorities. 
  
 Section 12.2
Headings. 
  
 The headings of articles and sections herein
are included solely for convenience of reference and shall not affect the meaning of any of the provisions of the Plan. 
  
 Section 12.3 Governing Law. 
  
 The Plan and all rights hereunder shall be construed in accordance with and governed by the laws of the State of Delaware. 
  

 14 

 ARTICLE XIII 
  
 EFFECTIVE DATE 
  
 The Plan shall be effective as of July 20, 2004. 
  

 15Exhibit 10.1

                              Consulting Agreement

This CONSULTING AGREEMENT is made effective the 4th day of December, 2003 by and
between Kevin Murray,  with offices at 12 Harben  Court,  Collingwood,  Ontario,
Canada  ("Consultant")  and  Maximum  Awards,  Inc.  a Nevada  Corporation  (the
"Company"),  with its  principal  offices at 50 West Libery  Street,  Suite 880,
Reno, NV 89501

WHEREAS, Consultant has experience in corporate finance, management, mergers and
acquisitions: and ,

WHEREAS, the Company desires to employ Consultant,  to provide advice concerning
mergers and acquisitions,  corporate finance,  day-to-day  management,  guidance
with respect to general business decisions,  and other duties commonly performed
by the Consultant of a Corporation.

NOW, THEREFORE, in consideration of the mutual promises, covenants and
agreements contained herein, and for other good and valuable consideration,  the
receipt  and  sufficiency  of which is  hereby  acknowledged,  the  Company  and
Consultant agree as follows:

1.   Engagement

The Company hereby  engages Kevin Murray as  Consultant,  to provide the Company
with advice and  leadership  as provided  herein  effective  the date hereof and
continuing through the Engagement Period (as defined below).

2.   Scope of Services

The  services to be provided by  Consultant  under this  Agreement  shall be all
those necessary or proper to supervise the Company's  management  personnel and,
as needed, to evaluate and advise on transactions  between the Company and third
parties. Specifically excluded from the scope of this agreement are any services
related to the Company's efforts to raise capital.

3.   Term of Engagement

This  Agreement  shall  have  an  initial  term  of  three  months  (3)  months.
Thereafter,  this Agreement will  automatically  be extended on a month to month
basis unless  Consultant or the Company shall serve written  notice on the other
party terminating the Agreement (the "Engagement  Period");  provided,  however,
that  Consultant  and the  Company  shall  agree in writing  as to  Consultant's
continuing  compensation  for the  Management  term  following the initial term.
Notice to terminate shall be in writing and shall be delivered at least ten (10)
days prior to the end of the Engagement Period, as extended, as provided herein.

<PAGE>

Consulting Agreement - Kevin Murray                                     Page 2
December 4, 2003

4.   Duties of Consultant

Consultant  shall devote that amount of time as  Consultant  deems  necessary to
fulfilling his obligations  under as set forth herein.  The Company  understands
that  Consultant  serves as an officer and/or director for other companies which
require some of Consultant's  professional  time, but which do not conflict with
Consultant's obligations hereunder. Consultant agrees that he will at all times,
faithfully and to the best of their experiences, abilities, and talents, perform
all the duties required of them under this Agreement.

5.   Compensation

Compensation  to Consultant  for services  provided  pursuant to this  Agreement
shall consist of 1,100,000  shares of the Company's common stock issued pursuant
to the registration statement referred in paragraph 6 below.

6.   Registration of Company Shares

The  Company  will  register  any  securities  referred  to  in  paragraph  5 in
connection  with the Services with the Securities and Exchange  Commission  (the
"Commission")  on a  registration  statement  on Form  S-8 or  other  applicable
registration  statement  within  three (3) months of the  effective  date of the
Company's  registration  statement Form 10-SB. Any Option Shares issued prior to
registration  will be done so only in reliance on exemptions  from  registration
provided by Section 4(2) of the Securities Act of 1933 (the "Act"), Regulation D
of the Act, and  applicable  state  securities  laws.  Such issuance shall be in
reliance on  representations  and  warranties of Advisor set forth  herein,  and
updated upon written request by the Company.

7.   Place of Services

The  services  provided  by  Consultant  hereunder  will be  performed  from the
Consultants  offices,  except as otherwise  mutually  agreed in writing  between
Consultant and the Company.

8.   Status

The Company will not be responsible for payment of all federal, state, and local
taxes on  compensation  paid under this Agreement,  including  income and social
security taxes, unemployment insurance, and any other taxes as may be required.

<PAGE>

Consulting Agreement - Kevin Murray                                     Page 3
December 4, 2003

9.   Termination

     (A)  Death.  In the  event  of  Consultant's  death,  except  for the  Life
     Insurance,  this Agreement and all rights and  obligations  hereunder shall
     immediately be terminated.

     (B) Termination for Cause.  The Company may, at its option,  terminate this
     Agreement by giving written  notice of  termination  to Consultant  without
     prejudice to any other  remedy to which the Company may be entitled  either
     at law, in equity, if Consultant:

          (i)  Willfully  breaches or neglects the duties that he is required to
          perform under the terms of this Agreement; or

          (ii) Fails to promptly comply with and carry out all directives of the
          Company's  management not otherwise in conflict or banned by the terms
          hereof, in which case, the terms hereof shall prevail; or

          (iii) Is convicted of committing any dishonest or unlawful act.

     (C)  Termination  Other  Than For Cause.  This  Agreement  shall  terminate
          immediately on the occurrence of any one of the following events:

          (i) The occurrence of circumstances,  in the judgment of the Company's
          management, that make it impracticable for the Company to continue its
          present line(s) of business; or

          (ii) The  decision of and upon  notice by  Consultant  to  voluntarily
          terminate this Agreement; or

          (iii) The loss by Consultant of legal capacity; or

          (iv) If the  Company  makes a general  assignment  for the  benefit of
          creditors, or institutes,  or has instituted against it any bankruptcy
          proceeding  for  reorganization  for  rearrangement  of its  financial
          affairs, or has a receiver of its assets or property appointed because
          of insolvency, or otherwise becomes insolvent or

<PAGE>

Consulting Agreement - Kevin Murray                                     Page 4
December  4, 2004

          unable to timely  satisfy all  obligations  in the ordinary  course of
          business.

     (D) Effect of  Termination  on  Compensation.  In the event of  Termination
     Other Than For Cause  prior to the  completion  of the  Engagement  Period,
     Consultant  shall be entitled to a lump sum payment equal to the balance of
     all compensation due to Consultant under this Agreement.

10.  Representations and Warranties of the Company

The Company represents and warrants to Consultant that:

     (A) Limited  Liability  Corporate  Existence.  The Company is a corporation
     duly organized,  validly  existing,  and in good standing under the laws of
     the State of Nevada,  with power to own  property and carry on its business
     as it is now being conducted.

     (B) No Conflict.  This  Agreement has been duly executed by the Company and
     the execution and performance of this Agreement will not violate, or result
     in a breach  of, or  constitute  a default  in any  agreement,  instrument,
     judgment,  decree or order to which the  Company is a party or to which the
     Company is subject,  nor will such execution and  performance  constitute a
     violation  or  conflict  of any  fiduciary  duty to which  the  Company  is
     subject.

     (C) Full  Disclosure.  The information  concerning the Company  provided to
     Consultant  pursuant  to this  Agreement  is, to the best of the  Company's
     knowledge  and belief,  complete and accurate in all material  respects and
     does not contain any untrue statement of a material fact or omit to state a
     material  fact  required  to make  the  statements  made,  in  light of the
     circumstances under which they were made, not misleading.

     (D) Date of Representations and Warranties. Each of the representations and
     warranties  of the Company set forth in this  Agreement is true and correct
     at and as of the date of execution of this Agreement.

11.  Indemnification

The Company and Consultant  each agree to indemnify,  defend and hold each other
harmless from and against all demands, claims, actions, losses, damages,

<PAGE>

Consulting Agreement - Kevin Murray                                     Page 5
December 4, 2004

liabilities,  costs  and  expenses,  including  without  limitation,   interest,
penalties  and  attorneys'  fees and  expenses  asserted  against  or imposed or
incurred  by  either  party by  reason  of or  resulting  from a  breach  of any
representation,  warranty, covenant,  condition, or agreement of the other party
to this Agreement.

The Company further agrees to indemnify defend and hold Consultant harmless from
and against all demands,  claims, actions, losses, damages,  liabilities,  costs
and expenses,  including without limitation,  interest, penalties and attorneys'
fees and expenses asserted against or imposed or incurred by Consultant  arising
from  Consultant's  fulfillment  of his duties as the  Consultant to the maximum
extent permitted by the Nevada Revised Statutes.

In addition to the foregoing indemnity, the Company agrees to indemnify and hold
harmless Consultant,  and each other person controlling Consultant or any of its
affiliates  (collectively,  the  "Indemnified  Parties" and each an "Indemnified
Party"),  within the  meaning of either  Section 15 of the Act, or Section 20 of
the Securities  Exchange Act of 1934,  (the "Exchange Act") from and against any
losses, claims,  damages and liabilities (or actions in respect thereof),  joint
or several, which are related to or arise out of or are based upon any untrue or
alleged untrue statement of material fact or any omission or alleged omission of
material  fact required to be stated or necessary to make other  statements,  in
light of the  circumstances in which they are made, not misleading  contained in
any  document,  report or material  provided to and relied upon by Consultant to
prepare any registration statement, prospectus,  prospectus,  application of any
kind or other  materials  or reports  filed by the Company  with any  regulatory
agency.

12.  Miscellaneous

     (A) Subsequent Events.  Consultant and the Company each agree to notify the
     other party if,  subsequent  to the date of this  Agreement,  either  party
     incurs  obligations  which could  compromise  their efforts and obligations
     under this Agreement.

     (B) Amendment. This Agreement may be amended or modified at any time and in
     any manner only by an instrument in writing executed by the parties hereto.

     (C) Further Actions and Assurances. At any time and from time to time, each
     party agrees,  at its or their expense,  to take actions and to execute and
     deliver documents a may be reasonably necessary to effectuate the purposes

<PAGE>

Consulting Agreement - Kevin Murray                                     Page 6
December  4, 2004

of this Agreement.

     (D) Waiver.  Any failure of any party to this  Agreement to comply with any
     of its obligations,  agreements,  or conditions  hereunder may be waived in
     writing by the party to whom such  compliance  is owed.  The failure of any
     party to this  Agreement  to enforce at any time any of the  provisions  of
     this  Agreement  shall in no way be  construed  to be a waiver  of any such
     provision or a waiver of the right of such party thereafter to enforce each
     and every such provision. No waiver of any breach of or non-compliance with
     this  Agreement  shall be held to be a waiver  of any  other or  subsequent
     breach or non-compliance.

     (E)  Assignment.  Neither the Company nor  Consultant  shall  assign  their
     rights or obligations under the Agreement without the prior written consent
     of the other.

     (F)  Notices.  Any notice or other  communication  required or permitted by
     this  Agreement must be in writing and shall be deemed to be properly given
     when  delivered in person to an officer of the other party,  when deposited
     in the United States mails for transmittal by certified or registered mail,
     postage  prepaid,  or when  deposited with a public  telegraph  company for
     transmittal,  or when  sent by  facsimile  transmission  charges  prepared,
     provided that the communication is addressed:

          (1)  In the case of the Company:

               50 West Libery Street,
               Suite 880,
               Reno, NV 89501
               United States of America.

          (2)  In the case of Consultant:

               Kevin Murray
               12 Harben Court
               Collingwood
               Ontario, L9Y 4L8

     or to such other person or address  designated by the Company or Consultant
     to receive notice.

<PAGE>

Consulting Agreement - Kevin Murray                                     Page 7
December 4, 2004

     (G) Headings.  The section and  subsection  headings in this  agreement are
     inserted for  convenience  only and shall not affect in any way the meaning
     or interpretation of this Agreement.

     (H) Counterparts.  This Agreement may be executed  simultaneously in two or
     more  counterparts,  each of which shall be deemed an original,  but all of
     which together shall constitute one and the same instrument.

     (I) Governing Law. This  Agreement was  negotiated and is being  contracted
     for in the State of  California,  and shall be  governed by the laws of the
     State of California,  notwithstanding any conflict-of-law  provision to the
     contrary.

     (J) Binding Effect. This Agreement shall be binding upon the parties hereto
     and  inure  to  the  benefit  of  the  parties,   their  respective  heirs,
     administrators, executors, successors, and assigns.

     (K) Entire Agreement.  This Agreement contains the entire agreement between
     the  parties  hereto  and   supersedes   any  and  all  prior   agreements,
     arrangements, or understandings between the parties relating to the subject
     matter of this Agreement. No oral understandings,  statements, promises, or
     inducements   contrary   to  the  terms  of  this   Agreement   exist.   No
     representations,  warranties, covenants, or conditions, express or implied,
     other than as set forth herein, have been made by any party.

     (L)  Severability.   If  any  part  of  this  Agreement  is  deemed  to  be
     unenforceable  the balance of the Agreement  shall remain in full force and
     effect.

     (M) Facsimile Counterparts. A facsimile, telecopy, or other reproduction of
     this  Agreement  may be  executed  by one or more  parties  hereto and such
     executed  copy may be  delivered  by  facsimile  of  similar  instantaneous
     electronic  transmission  device  pursuant to which the  signature of or on
     behalf of such party can be seen,  and such execution and delivery shall be
     considered valid, binding and effective for all purposes. At the request of
     any  party  hereto,  all  parties  agree to  execute  an  original  of this
     Agreement as well as any facsimile, telecopy or other reproduction hereof.

     (N)  Termination of Any Prior  Agreements.  Effective the date hereof,  all
     prior rights of  Consultant  relating to the accrual or payment of any form
     of  compensation  or  other  benefits  from  the  Company  based  upon  any
     agreements other than this Agreement, whether written or oral, entered into

<PAGE>

Consulting Agreement - Kevin Murray                                     Page 8
December  4, 2004

     prior to the date hereof, are hereby terminated.

     (O) Consolidation or Merger. Subject to the provisions hereof, in the event
     of a sale of the stock, or substantially  all of the stock, of the Company,
     or consolidation or merger of the Company with or into another  corporation
     or entity,  or the sale of substantially all of the operating assets of the
     Company to another  corporation,  entity or  individual,  the  Company  may
     assign  its   rights  and   obligations   under  this   Agreement   to  its
     successor-in-interest  and such  successor-in-interest  shall be  deemed to
     have  acquired  all rights  and  assumed  all  obligations  of the  Company
     hereunder;  provided,  however,  that in no  event  shall  the  duties  and
     services  of  Consultant  provided  for  herein,  or the  responsibilities,
     authority or powers commensurate therewith,  change in any material respect
     as a result of such sale of stock, consolidation, merger or sale of assets.

     (P) Time is of the Essence. Time is of the essence of this Agreement and of
     each and every provision hereof.

IN WITNESS WHEREOF,  the parties have executed this Agreement effective the date
first written above.

"Consultant"
Kevin Murray.

"Company"
Maximum Awards Inc.
a Nevada Corporation

Title:  President

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