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INDEPENDENT SALVAGER AGREEMENT

THIS AGREEMENT (the “Agreement”) made this 18th day of July 2017, by and between SWORDFISH PARTNERS, a Florida joint venture (“Swordfish or “Swordfish Partners”) with offices at 15500 Roosevelt Boulevard - Suite 303, Clearwater, Florida 33760, and BLUEWATER VENTURES INTERNATIONAL, INC. (“BlueWater”), a Nevada corporation, with offices at 3236 Highway 17 – Suite 4, Green Cove Springs Florida 32043.

Predicate Understanding

A. Swordfish Partners is a joint venture comprised of EXPL Swordfish, LLC, a Florida limited liability company (“EXPLS”) and Deep Blue Exploration, LLC, a Tennessee limited liability company (“Deep Blue”).  EXPLS, LLC is a wholly owned LLC of Endurance Exploration Group, Inc, a Nevada corporation, (“Endurance”). Swordfish Partners owns the salvage rights of the Unknown, Abandoned and Sunken Steamship, her tackle, appurtenances, armament, and cargo, including the Paddle Wheel Steamship Pulaski (collectively referred to as “the Shipwreck”) as recognized by the United States District Court, Middle District of Florida, in Tampa, Florida, which arrested the Shipwreck and appointed Swordfish Partners as the Substitute Custodian of the Shipwreck. The area (the “Shipwreck Area”) is shown in composite Exhibit X attached hereto.  The parties of Swordfish Partners, EXPLS and Deep Blue, have agreed that they will divide the profits (whether in cash or in kind) from their venture evenly between them after a two hundred percent (200%) reimbursement of expenses.

B.  Endurance, EXPLS, and Deep Blue are competent, experienced, skilled, and law abiding shipwreck salvors.  EXPLS and Deep Blue serve as Managing Directors of Swordfish Partners and either party has the authority to enter into this Agreement in the name of Swordfish Partners.  Swordfish desires to complete the salvage of the significant objects that lie within the Shipwreck Area during 2017, if possible, and is confident that, with BlueWater’s assistance, Swordfish may be able to accomplish this goal. 

C.

BlueWater is a competent, experienced, skilled and law abiding shipwreck salvor that desires to assist in the salvaging the Shipwreck, without intruding on Swordfish’s duties and authority as the Substitute Custodian; and, because BlueWater will share the agreed cost of salvaging the Shipwreck Area, BlueWater will have exclusive rights to salvage as set forth below and share one half of EXPLS’s reimbursed costs and one half of EXPLS’s one half (25%) of all salvaged objects recovered from the Shipwreck Area, as well as, successor in interest rights to adjudicated title to Swordfish by the Tampa District Court, or as salvage awards to Swordfish from claimants whose claims against an object are sustained by the Court and paid to Swordfish.

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IN CONSIDERATION of the mutual promises contained herein, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:

1.

Engagement of BlueWater.  Swordfish hereby engages BlueWater as the exclusive independent contractor to salvage the Shipwreck in the Shipwreck Area as stated Exhibit X and BlueWater will use its best effort in performing its salvage efforts. Blue Water ships, equipment and crew are the only ones anticipated to be needed to make the recovery.  No other companies, ships, equipment or crew shall be used in salvage operations without the expressed written permission of Blue Water.  Endurance, EXPLS or Deep Blue may put ships/boats on site to observe at their own expense.  

2.

Working Protocol.  The parties shall mutually agree upon the scope of work, operating schedule, ships deployed, equipment utilized and personnel required, as well as, estimated costs, in the form of an operational budget, prior to commencement of operations.  After an initial agreed schedule of operations has been completed on site, the parties shall work toward a mutual agreement to continue or end salvage work on the site. 

3.

Publicly Traded Companies.  The parties understand that both Endurance, as owner of EXPLS, and BlueWater are publicly traded companies.  As such, this Agreement, once executed, may be considered material in nature and, upon advice of legal securities counsel, may require public disclosure that complies with all securities laws.  The parties, with the help of said counsel, shall work toward and agree upon text and methods of said disclosure including, but not limited to, a press release.  This paragraph shall also represent a continuing obligation upon the parties to disclosure material events that occur during salvage operations and an obligation to agree to those disclosures with respect to their methods and content.

4.

Termination.  Either party may terminate this Agreement for cause prior to recovering all of the objects, as described in paragraph 1 above, upon written notice to the other party by hand delivery or a nationally recognized overnight courier.  The effective date of termination of this Agreement shall be from the date that notice of termination has been delivered to the offices of the party being terminated, or such other date mutually agreed by the parties, in the event the cause for termination is not cured.  “Cause” means: (i) any material breach of this Agreement which is not cured within ten (10) days of written notice from the non-breaching party; (ii) any representation or warranty under this Agreement which is false; (iii) filing bankruptcy; (iv) an adjudication of bankruptcy or insolvency; or, (v) a breach of trust.  If terminated for cause, each party shall retain their respective rights to their share of treasure recovered prior to termination of this Agreement.  Notwithstanding the above, this agreement, unless extended by mutual written agreement of the parties, shall terminate one year from the date first written above.

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5.

Division of Recoveries.  After settlement of all adjudicated claims of other third-parties (including governmental) and distribution to Deep Blue, EXPLS agrees to convey to BlueWater, 50% of EXPLS distributed value (whether in cash or in kind in the form of artifacts and treasure) from all recoveries by BlueWater from the Shipwreck and wrecked vessels in the Shipwreck Area shown on Exhibit X, during the course of this Agreement and all extensions granted by Swordfish Partners during the term of this Agreement.  Division of the recoveries will occur promptly after adjudication of title by the Tampa District Court sitting in admiralty.  In the event that an artifact is indivisible, either party may buy the object from the other party for the other party’s percentage of ownership of the value affixed by the Division Committee.   Should both parties hereto wish to purchase an indivisible artifact, the competing rights to purchase shall be settled by a coin toss; and, if there are two indivisible artifacts, the loser of the coin toss shall have the right to purchase the second artifact.  The coin toss method shall settle the rights to purchase the next two or three artifacts and so on for the fourth and fifth, etc.  Both parties will have the right to market an indivisible artifact, but the selling party maintains insurance to cover the value assigned to the artifact.  After division and adjudication of title, either party may sell its share of treasure recovered under this salvage agreement.  BlueWater acknowledges that, in all events, Deep Blue Exploration will have the first right to purchase an indivisible artifact at fair market value. After said acquisition by Deep Blue, BlueWater and EXPLS will settle the next indivisible artifact acquisition by coin toss as described above.

6.

Finds Outside the Salvage Area.  In the event that additional artifacts or any new wreck previously unknown to Swordfish Partners are located by BlueWater anywhere outside the Shipwreck Area while working under this Agreement, BlueWater shall notify Swordfish Partners through EXPLS so that Swordfish Partners may extend its admiralty claim to include that area, and Swordfish Partners shall have the right to apply for a new admiralty claim on such new wreck; and, in such case, EXPLS will make its best effort to obtain Swordfish Partners’ approval for BlueWater to enter a supplemental salvage agreement in substantially the form as this Agreement with respect to any such new wreck site located by BlueWater under the same terms and conditions as this Agreement.

7.

Daily Dive Field Notes.  BlueWater agrees that all artifacts salvaged by BlueWater hereunder are to be delivered within one day of returning to port to Micah Eldred or other agent of Swordfish Partners designated by EXPLS or at such other mutually agreeable deadlines and locations as the parties may determine hereafter, along with copies of their Daily Dive Field Notes, disclosing a complete list of all items recovered, reflecting the name of the vessel, all persons aboard, the location where the items are recovered, latitude and longitude, using DGPS, of all anomalies, description of objects found, empty holes where nothing is found, the time of departure, and return.  BlueWater agrees that if nothing is located, they are still required to submit copies of their Daily Field Notes to Swordfish.

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8.

Recovery Expenses.  BlueWater shall furnish the agreed ships, equipment and personnel and all of the associated costs as estimated by the agreed budget shall be shared equally between EXPLS and BlueWater.  However, the owners of any vessel used are responsible for their expenses such as insurance, engine repair or replacement, injury to the propeller, overhauling, repairing the hull, fixing wiring issues, repairing electronic equipment problems and such other items.  When the last trip to the Shipwreck Area reaches port pursuant to this Agreement and within two weeks thereof, a reconciliation of all expenses paid by each party shall occur. Final adjustments and payments from one party to another to realize the intent of this Agreement for a division of all said costs shall occur within another two weeks from said final reconciliation.

9.

Blue Water Personnel. BlueWater agrees to furnish EXPLS with a resume of each and every person working on BlueWater’s vessels, including the person’s home address or permanent address, telephone number, social security number and a clear copy of a state issued photo identification document (such as a driver’s license), prior to that person joining the vessel’s crew. EXPLS vessels and personnel may only be used based upon agreement of both parties.  Both parties agree to make best efforts during the term of this Agreement to salvage the site.  

10.

  Court and Custodian Expenses.  Swordfish Partners shall pay all “in rem” admiralty legal expenses, and all preservation, conservation and custodial expenses as set forth in the following paragraph 11 but they will be reimbursed from the firsts funds realized after adjudication of title to the recoveries; also, should any person file a claim, the legal fees and costs of litigating any claims, including negotiation and settlement, will be reimbursed to Swordfish.

11.

Substitute Custodianship.  BlueWater acknowledges that Swordfish Partners has been appointed Substitute Custodian of the treasures from the shipwrecks in Swordfish Partners’ Shipwreck Area admiral claim by Tampa District Court as is required to safeguard any and all artifacts and other items, whether recovered or remaining on the bottom of the ocean.  Removal of any treasure or artifacts from the shipwrecks in Swordfish Partners’ Shipwreck Area under Swordfish Partners’ admiralty claim and the jurisdiction of Tampa District Court may, at least, constitute contempt of court; and, EXPLS and BlueWater together, or separately, agree violators will be prosecuted to the fullest extent of the law.  If an individual working under the direction or control of the BlueWater is convicted in a United States Court of Law of wrongful removal or retention of any treasure or artifacts from the shipwrecks in Swordfish Partners’ Shipwreck Area, BlueWater will forfeit its share of the salvaged treasure that was wrongfully removed or retained by such individual.  BlueWater understands and agrees that it is BlueWater’s responsibility to ensure that the crew of BlueWater’s vessels adheres to the provisions of this paragraph 11 and to promptly report any violation to EXPLS.  All artifacts and other objects, including but not limited to gold, silver and 

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jewelry, shall be turned over to Micah Eldred, or another agent of Swordfish Partners designated by Micah Eldred, within one full banking day of BlueWater’s vessel return to port or as otherwise agreed to by the parties.  Afterward, EXPLS, as Substitute Custodian’s Managing Director, will pay for all expenses of safekeeping, cataloging, conservation, preservation if needed and division of the recoveries by EXPLS and BlueWater.  The Substitute Custodian costs will be reimbursed prior to, or at, the division.

12.

Trust but Verify.  BlueWater agrees that EXPLS may have an agent of EXPLS’s choosing aboard BlueWater’s vessels at all times.  EXPLS’s agent(s) shall follow the rules of the BlueWater Rose, and comply with the instructions of the captain of the BlueWater Rose, with respect to ship’s operations and safety.  Likewise, and in the event BlueWater approves the use of and EXPLS ship on side, EXPLS agrees that BlueWater may have an agent of BlueWater’s choosing aboard any of EXPLS’s vessels that the parties agree to use, at all times.  BlueWater’s agent(s) shall follow the rules of the EXPLS, and comply with the instructions of the captain of said vessel with respect to ship’s operations and safety. 

13.

Medial Rights.  “Media Rights” shall mean right, title or interest in any print, video, film, internet, publishing or any other media related to operations conducted under this Agreement, and any royalties and revenue therefrom. With respect to Media Rights the parties agree: 

a.

EXPLS and BlueWater agree licensing, sale or other commercial exploitation of video or film for the purpose of documentaries, TV specials or motion picture media rights belongs to Swordfish Partners alone.  EXPLS will, during the term of this Agreement, and extensions, use its best effort to ensure that Swordfish Partners’ promotional media shall acknowledge BlueWater.  Other Media Rights, including Internet and print related to operations conducted under this Agreement shall be the separate property of the party creating it.

b.

EXPLS and BlueWater acknowledge and agree that Swordfish Partner’s Media Rights as stated in paragraph 13(a) above may: (i) facilitate fundraising for operations under this Agreement; (ii) promote authentication, marketing and sale of treasure recovered from operations under this Agreement; and (iii) have the potential for commercial exploitation and sale by either Swordfish or BlueWater independently of operations under this Agreement. Each party retains the right to review and approve in advance any use by the other party of their name, logo and any communication or statement regarding their operations and activities; and, such approval shall not be unreasonably withheld.

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c.

The separate Media Rights of EXPLS and BlueWater existing prior to the effective date of this Agreement, or which arise hereafter, which are not attributable to operations conducted under this Agreement, shall be and remain the respective separate property of EXPLS and BlueWater.

d.

Each party retains as their separate property all right, title and interest in any print or internet Media Rights related to operations conducted under this Agreement, which has been created by the party or its assigns.

e.

In the event EXPLS and BlueWater decide to jointly undertake the production or creation of media related to operations conducted under this Agreement, their respective duties and obligations, and their respective rights, title and interest in Media Rights jointly produced or created hereafter, shall be determined and set forth in a subsequent written agreement.

f.  Net profits from all Media Rights shall be distributed to the parties on the same basis as outlined above.

14.  Insurance and Indemnity. Each party agrees to hold the other party harmless against all claims of injury, death, debts and liabilities incurred in the course of any performance under this Agreement.  Each party will maintain adequate insurance for claims of death or injury of their employees or third parties.  Neither Swordfish Partners nor EXPLS has the right or duty to hire, direct, supervise or manage BlueWater’s crew.

15.  Restraint on Lawsuits and Other Claims.  Subject to the provisions of paragraph 6 above, BlueWater agrees not to file for salvage rights or the American law of finds in any United States District Court or with any other legal forum within or without of the United States against any shipwreck in the Shipwreck Area during the next ten years.  Further, no lien can be created without court permission because subject ship is under arrest.1

16.   No Partnership, Etc.  BlueWater is an independent contractor acting as an independent party and is not an officer, employee, partner or authorized agent of Swordfish Partners nor EXPLS and is not authorized to represent or act on behalf of either Swordfish Partners or EXPLS.  Swordfish is not an officer, employee, partner or authorized agent of BlueWater and is not authorized to represent or act on behalf of BlueWater.

1  Oil Shipping (Bunkering) B.V. v. Sonmez Denizcilik Ve Ticaret A.S., 10 F.3d 176, 181 (3rd Cir. 1993).

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17.     Compliance with Maritime Law.  BlueWater agrees to fully comply with all admiralty and maritime laws, rules and regulations of the United States such as to not entering into a sunken military vessel of any nation without the written approval of the proper governmental agency.

18.   Division Timing.  Division of the treasure will be as soon as possible after permission by the Tampa District Court is given.  A Division Committee made up of one officer of EXPLS and one officer of BlueWater or a nominee named by each party and, finally, a nominee agreed by the two nominees, who will serve as the chairman or chairwoman as the case may be.  The Division Committee will devise an equitable method and time schedule for the division, distribution and sale of the valuable items recovered in the Shipwreck Area, or nearby as contemplated in paragraph 6. 

19.   Construction of Agreement.  The parties hereto agree that in construing the terms of this Agreement, it shall be construed as if prepared by an independent third party.  This Agreement cannot be assigned by BlueWater without written approval of Swordfish which is at Swordfish’s sole discretion.

20.   Arbitration Clause.  Pursuant to the law of the State of Florida, the parties agree to arbitrate any disputes arising under this agreement.  The arbitration will be conducted under the rules of the American Arbitration Association and shall be held at Orlando, Florida, or such other place as the parties may agree.

21.   Miscellaneous.  This Agreement embodies the entire agreement between the parties and no modification shall be effective unless it is in writing and signed by each party.  No waiver of any covenant or condition of this Agreement by either party shall be deemed to imply or constitute a further waiver of the same or any other covenant or condition of this Agreement.  The paragraph headings and titles are not a part of this Agreement and shall have no effect upon the construction or interpretation of any part hereof.  A determination by a court, governmental body or other competent authority that any provision of this Agreement, or any amendment hereof, is unenforceable or invalid in any instance, shall not affect the validity or enforceability of any other provision.  In the event that the parties enter into arbitration or litigation to enforce their respective rights under this Agreement, the prevailing party shall be entitled to receive its attorney fees and costs, whether suit is brought or not, including those for any appeal.  This Agreement shall be construed under federal admiralty and maritime law (and Florida law if federal law does not address a contested matter at issue) and all of the provisions herein shall inure to the benefit and be binding upon the legal representatives, successors and permitted assigns of the parties hereto.

Signatures on the following page

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IN WITNESS WHEREOF, the parties, by their duly authorized officers, have executed this instrument in duplicate on the day and year first above written.  

SWORDFISH PARTNERS

BLUE WATER VENTURES

By: EXPL Swordfish, LLC, the

INTERNATIONAL, INC.

Manager of Swordfish Partners

 By: /s/ Micah Eldred

By:  /s/ W. Keith Webb

      Micah Eldred, Manager

       W. Keith Webb, CEO

      EXPL Swordfish, LLC

8Exhibit

EXHIBIT 10.14

Executive Severance and Retention Incentive Plan
Amended and Restated July 12, 2017
1.    Introduction.  The purpose of this Executive Severance and Retention Incentive Plan (the “Plan”) is to provide assurances of specified severance benefits to eligible executives of Netflix, Inc. and its Affiliates upon certain terminations of employment and to provide specified retention incentives to eligible executives of the Company upon a Change in Control.  The Company believes that the severance plan set forth in this Plan will aid the Company in attracting and retaining highly qualified individuals.  In addition, the Company believes that the retention incentive set forth in this Plan will help (a) assure that the Company will have continued dedication and objectivity from its executives notwithstanding the possibility, threat or occurrence of a Change in Control and (b) provide the Covered Executives with an incentive to continue their employment and to motivate executives to maximize the value of the Company upon a Change in Control for the benefit of its stockholders.  This Plan is an “employee welfare benefit plan,” as defined in Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended.  This document constitutes both the written instrument under which the Plan is maintained and the required summary plan description for the Plan.

2.    Important Terms.  To help you understand how this Plan works, it is important to know the following terms:

2.1     “Administrator” means Netflix, acting through its Chief Talent Officer or any person to whom the Administrator has delegated any authority or responsibility pursuant to Section 9, but only to the extent of such delegation.

2.2     “Affiliate” means any corporation or other entity (including, but not limited to, a limited liability company, partnership or joint venture) controlling, controlled by, or under common control with Netflix, Inc., unless otherwise excluded from the Plan.  Affiliates excluded from the Plan are listed in Exhibit A.

2.3     “Allocatable Compensation” means a currency-denominated annual compensation amount available for allocation by the Covered Executive between cash compensation and equity compensation as approved by (i) the Compensation Committee of the Board or other properly designated Board committee, or (ii) for a Covered Executive whose compensation is not subject to approval by a committee of the Board, his or her manager or other authorized individual, in either case that is in effect either  (a) immediately preceding the Severance Date (with respect to the Severance Benefit) or the date of the Change of Control (with respect to the Retention Incentive), or (b) at any time within the twelve (12) month period prior to the Severance Date (with respect to the Severance Benefit) or date of the Change of Control (with respect to the Retention Incentive), whichever of (a) or (b) is greater.

2.4    “Board” means the Board of Directors of Netflix.

2.5    “Cause” means (i) an act of fraud or personal dishonesty undertaken by a Covered Executive in connection with the Covered Executive’s responsibilities as an employee that is intended to result in substantial gain or personal enrichment of the Covered Executive, (ii) a Covered Executive’s conviction of, or plea of nolo contendere to, a felony, or (iii) a Covered Executive’s gross misconduct in connection with the performance of the Covered Executive’s responsibilities as an employee or willful failure to perform a reasonable material component of the Covered Executive’s responsibilities as an employee.

2.6    “Change in Control” means the first to occur of any of the following:
(a)Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of Netflix representing fifty percent (50%) or more of the total voting power represented by Netflix’s then outstanding voting securities; or
(b)consummation of the sale or disposition by Netflix of all or substantially all of Netflix’s assets; or
(c)The consummation of a merger or consolidation of Netflix with any other corporation, other than a merger or consolidation which would result in the voting securities of Netflix outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of Netflix, or such surviving entity or its parent outstanding immediately after such merger or consolidation; or
(d)A change in the composition of the Board, as a result of which less than a majority of the Directors are Incumbent Directors.  An “Incumbent Director” means a Director who either (A) is a Director as of the Effective Date, or (B) is elected, or nominated for election, to the Board with the affirmative votes of at least a majority of those Directors whose election or nomination was not in connection with any transaction described in subsections (a), (b) or (c) or in connection with an actual or threatened proxy contest relating to the election of Directors.

2.7    “Company” means Netflix and its Affiliates.

2.8    “Covered Executive” means a common law employee employed by Netflix or an Affiliate at the Vice President level or higher as reflected in Netflix’s or Affiliate’s human resource systems.

2.9    “Director” means a member of Netflix’s Board of Directors.

2.10    “Effective Date” means July 1, 2005.

2.11    “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

2.12    “Involuntary Termination” means a termination of employment with the Company of a Covered Executive under the circumstances described in Section 3.1.  For purposes of the Plan, the transfer of a Covered Executive’s employment between Netflix and its Affiliates, or between Affiliates will not be considered a termination of employment and the Covered Executive will not be entitled to receive a Severance Benefit.

2.13    “Netflix” means Netflix, Inc., a Delaware corporation, and any successor thereto.

2.14    “Option” means a right granted pursuant to Netflix’s stock option plan(s) to purchase common stock of Netflix pursuant to the terms and conditions of such plan(s).

2.15    “Plan” means the Executive Severance and Retention Incentive Plan, as set forth in this document, and as hereafter amended from time to time.

2.16    “Retention Incentive” means the compensation the Covered Executive will be provided pursuant to Section 4.

2.17    “Severance Benefit” means the compensation and other benefits the Covered Executive will be provided pursuant to Section 3.

2.18    “Severance Date” means the date on which an Eligible Executive experiences an Involuntary Termination.

3.    Severance.

3.1    Eligibility.  If at any time prior to a Change in Control, Netflix or an Affiliate terminates a Covered Executive’s employment for other than Cause, death or permanent disability such that the Covered Executive is no longer an employee of the Company, then, subject to the Covered Executive’s compliance with Section 3.3, the Covered Executive shall receive the Severance Benefit provided pursuant to this Section 3.  For purposes of clarification, the severance amount set forth in 3.2 shall not be due or payable to any Covered Executive who shall have received or is eligible to receive the Retention Incentive.

3.2    Severance Benefit. 

(a)    Each Covered Executive who becomes eligible for a Severance Benefit under Section 3.1 shall be paid a lump sum cash payment equal to nine (9) months of Allocatable Compensation.  Notwithstanding the foregoing, employees hired as Covered Executives shall be paid a lump sum cash payment equal to twenty-four (24) months of Allocatable Compensation (subject to the other provisions of this Section 3.2), provided that the Severance Benefit shall be reduced by an amount equal to one (1) month of Allocatable Compensation for each month of tenure at the Company for the Covered Executive’s first fifteen (15) months of continuous employment following hire by the Company.  The purpose of the foregoing is to provide newly hired Covered Executives with 24 months Severance Benefit reducing to the standard nine (9) months.  The Severance Benefit shall be paid to the Covered Executive as soon as administratively practicable following the Severance Date, but in no event more than two and one half months following the Severance Date, subject to Section 7 and to the Covered Executive’s compliance with Section 3.3.

(b)    Notwithstanding any contrary provision of the Plan, the Administrator may reduce the Severance Benefit provided in Section 3.2(a) but only with the written consent of the Covered Executive, and provided that any such reduction may be made only if in accordance with all applicable laws, including (but not limited to) Section 409A of the Code.

3.3    Release Agreement.  As a condition to receiving a Severance Benefit under this Plan, each Covered Executive will be required to sign a waiver and release of all claims arising out of his or her Involuntary Termination and employment with the Company in a form reasonably satisfactory to the General Counsel of Netflix (the “Release”).  The Release must be executed and irrevocably effective within the period required by the Release but in no event later than sixty (60) days following the Covered Executive’s Severance Date, inclusive of any revocation period set forth in the Release (such deadline, the “Release Deadline”).  The Severance Benefit will not be paid or provided until the Release becomes irrevocably effective.  If the Release does not become irrevocably effective by the Release Deadline due to action or inaction of the Covered Executive, the Covered Executive will forfeit all rights to the Severance Benefit.
Notwithstanding any contrary provision of the Plan, in order to help a Covered Executive avoid having to pay the additional twenty percent (20%) income tax under Section 409A of the Internal Revenue Code of 1986, as amended, in the event that a Covered Executive’s Severance Date occurs at a time during the calendar year when it would be possible for the Release to become effective in the calendar year following the calendar year in which the Severance Date occurs, then the Severance Benefit owed (if any) will be paid on the first payroll date that is at least sixty  (60) days following the Severance Date (but in all cases subject to Section 7).
4.    Retention Incentive.

4.1    Eligibility.  An individual shall be eligible for the Retention Incentive under the Plan, in the amount set forth in Section 4.2, only if he or she (i) is a Covered Executive on the date of a Change in Control, and (ii) is not eligible for a Severance Benefit under Section 3.

4.2    Retention Incentive.  Each Covered Executive eligible for a Retention Incentive in accordance with Section 4.1 shall be entitled to receive a lump sum cash payment equal to twelve (12) months of Allocatable Compensation.  The Retention Incentive shall be paid to the Covered Executive as soon as administratively practicable following the date of the Change in Control, but in no event more than two and one-half months thereafter.

4.3    Parachute Payments.  In the event that a Severance Benefit or Retention Incentive provided for in this Plan or otherwise payable or provided to the Covered Executive (i) constitutes a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and (ii) but for this Section 4.3, would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Employee’s Severance Benefit or Retention Incentive hereunder shall be either

(a)    delivered in full, or

(b)    delivered as to such lesser extent which would result in no portion of such benefits being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by the Covered Executive on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code.  Unless Netflix and the Covered Executive otherwise agree in writing, any determination required under this Section 4.3 shall be made in writing in good faith by an accounting firm chosen by the Administrator and reasonably acceptable to the Covered Executive (the “Accountants”).  If a reduction in benefits is required only under the Plan, the reduction will apply to the Employee’s Severance Benefit or Retention 

Incentive, as applicable.  If a reduction in benefits is required under the Plan and one or more other arrangements or plans entered into with or maintained for the benefit of the Covered Executive that provides for vesting acceleration of equity awards, cash severance or retention benefits, and/or continued employee benefits coverage, the reduction will occur in the following order:  the vesting acceleration of stock options or stock appreciation rights, then cash severance or retention benefits, then vesting acceleration of equity awards other than stock options or stock appreciation rights, and then Company-paid employee benefits coverage.  In the event that acceleration of vesting of stock options, stock appreciation rights or other equity awards is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant for the Covered Executive’s stock options, stock appreciation rights or other equity awards, as applicable.  If two or more stock options, stock appreciation rights or other equity awards are granted on the same day, the stock options, stock appreciation rights or other equity awards, as applicable, will be reduced on a pro-rata basis.  For purposes of making the calculations required by this Section 4.3, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  Netflix and the Covered Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section.  Netflix shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 4.3.

5.    Reserved

6.     Non-Duplication of Benefits.  Notwithstanding any other provision in the Plan to the contrary and except as provided in this Section 6, the Severance Benefits and Retention Incentive provided hereunder shall be in lieu of any other severance and/or retention plan benefits and the Severance Benefits and Retention Incentive provided hereunder shall be reduced by any severance paid or provided to a Covered Executive under any other plan or arrangement.  Notwithstanding the preceding sentence, this Section 6 shall not apply to a Covered Executive to the extent such Covered Executive’s separate, written employment, retention or other agreement with the Company explicitly exempts the Covered Executive from the preceding sentence.

7.    Section 409A.

7.1    Notwithstanding anything herein to the contrary, it is the intent that the Retention Incentives and Severance Benefits payable under the Plan satisfy the requirements of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations and be exempt from Section 409A of the Code and the final regulations and any guidance promulgated thereunder (“Section 409A”).  If the Severance Benefits (or any portion thereof), when considered together with any other severance payments or separation benefits, are considered deferred compensation subject to Section 409A (together, the “Deferred Compensation Separation Benefits”), no Deferred Compensation Separation Benefits or other severance benefits that otherwise are exempt from Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(9) will be considered due or payable until the Covered Executive has incurred a “separation from service” within the meaning of Section 409A.  In addition, if the Covered Executive is a “specified employee” within the meaning of Section 409A at the time of the Covered Executive’s separation from service (other than due to death), then any Deferred Compensation Separation Benefits otherwise due to the Covered Executive on or within the six (6) month period following the Covered Executive’s 

separation from service will accrue during such six (6) month period and will become payable in a lump sum payment (less applicable withholding taxes) on the date six (6) months and one (1) day following the date of the Covered Executive’s separation from service.  All subsequent payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit.  Notwithstanding anything herein to the contrary, if the Covered Executive dies following his or her separation but prior to the six (6) month anniversary of his or her date of separation, then any payments delayed in accordance with this paragraph will be payable in a lump sum (less applicable withholding taxes) to the Covered Executive’s estate as soon as administratively practicable after the date of the Covered Executive’s death and all other Deferred Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit.

7.2    Each payment and benefit payable under the Plan is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.  Any payment or benefit that satisfies the requirements of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations shall not constitute a Deferred Compensation Separation Benefit.  Any payment or benefit that entitles the Covered Executive to taxable reimbursements or taxable in-kind benefits covered by Section 1.409A-1(b)(9)(v) shall not constitute a Deferred Compensation Separation Benefit.  Any severance payment or portion thereof that qualifies as a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the Section 409A Limit shall not constitute a Deferred Compensation Separation Benefit.  For this purpose, “Section 409A Limit” will mean the lesser of two (2) times:  (A) the Covered Executive’s annualized compensation based upon the annual rate of pay paid to Covered Executive during his or her taxable year preceding the Covered Executive’s taxable year of the Covered Executive’s separation from service as determined under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or (B) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which the Covered Executive’s employment is terminated.

7.3    It is the intent of this Plan to comply with the requirements of Section 409A so that none of the payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply.  Notwithstanding anything to the contrary in the Plan, including but not limited to Section 11, Netflix reserves the right to amend the Plan as it deems necessary or advisable, in its sole discretion and without the consent of the Covered Executives, to comply with Section 409A of the Code or to otherwise avoid income recognition under Section 409A of the Code prior to the actual payment of Retention Incentives or Severance Benefits or imposition of any additional tax (provided that no such amendment shall materially reduce the benefits provided hereunder).

8.    Withholding.  The Company will withhold from any Severance Benefit and Retention Incentive all federal, state, local and other taxes required to be withheld therefrom and any other required payroll deductions.

9.    Administration.  Netflix is the administrator of the Plan (within the meaning of section 3(16)(A) of ERISA).  The Plan will be administered and interpreted by the Administrator (in his or her sole discretion).  The Administrator is the “named fiduciary” of the Plan for purposes of ERISA and will be subject to the fiduciary standards of ERISA when acting in such capacity.  Any decision made or other action taken by the Administrator prior to a Change in Control with respect 

to the Plan, and any interpretation by the Administrator of any term or condition of the Plan prior to a Change in Control, or any related document, will be conclusive and binding on all persons and be given the maximum possible deference allowed by law.  Following a Change in Control, any decision made or other action taken by the Administrator with respect to the Plan, and any interpretation by the Administrator of any term or condition of the Plan, or any related document that (i) does not affect the benefits payable under the Plan shall not be subject to review unless found to be arbitrary and capricious or (ii) does affect the benefits payable under the Plan shall not be subject to review unless found to be unreasonable or not to have been made in good faith.  The Administrator has the authority to act for the Company (in a non-fiduciary capacity) as to any matter pertaining to the Plan; provided, however, that this authority does not apply with respect to (a) Netflix’s power to amend or terminate the Plan or (b) any action that could reasonably be expected to increase significantly the cost of the Plan is subject to the prior approval of the senior officer of Netflix  The Administrator may delegate in writing to any other person all or any portion of his or her authority or responsibility with respect to the Plan.

10.    Eligibility to Participate.  The Administrator will not be excluded from participating in the Plan if otherwise eligible, but he or she is not entitled to act or pass upon any matters pertaining specifically to his or her own benefit or eligibility under the Plan.  A senior officer of Netflix, Inc. will act upon any matters pertaining specifically to the benefit or eligibility of the Administrator under the Plan.

11.    Amendment or Termination.  Netflix reserves the right to amend or terminate the Plan at any time provided that (a) as the Plan relates to each individual who is a Covered Executive on the Effective Date, without such Covered Executive’s written consent, the Plan may not be amended or terminated so as to reduce the amount of the Severance Benefit or Retention Incentive payable to the Covered Executive nor to restrict the Covered Executive’s eligibility for a Severance Benefit or Retention Incentive, and (b) as the Plan relates to each individual who first becomes a Covered Executive after the Effective Date, (1) the Plan may be amended or terminated before such individual becomes a Covered Executive, and (2) after such individual becomes a Covered Executive, without such Covered Executive’s written consent, the Plan may not be amended or terminated so as to reduce the amount of the Severance Benefit and Retention Incentive payable to the Covered Executive nor to restrict the Covered Executive’s eligibility for a Severance Benefit or Retention Incentive.  Any amendment or termination of the Plan will be in writing.  Any action of Netflix in amending or terminating the Plan will be taken in a non-fiduciary capacity.  Upon a Change in Control and following the receipt by all eligible Covered Executives of the Retention Incentive provided for herein, this Plan shall have no further force or effect.

12.    Claims Procedure.  Any employee or other person who believes he or she is entitled to any payment under the Plan may submit a claim in writing to the Administrator within ninety (90) days of the earlier of (i) the date the claimant learned the amount of their Severance Benefit or Retention Incentive under the Plan or (ii) the date the claimant learned that he or she will not be entitled to any benefits under the Plan.  If the claim is denied (in full or in part), the claimant will be provided a written notice explaining the specific reasons for the denial and referring to the provisions of the Plan on which the denial is based.  The notice will also describe any additional information needed to support the claim and the Plan’s procedures for appealing the denial.  The denial notice will be provided within ninety (90) days after the claim is received.  If special circumstances require an extension of time (up to ninety (90) days), written notice of the extension will be given within the initial ninety (90) day period.  This notice of extension will indicate the 

special circumstances requiring the extension of time and the date by which the Administrator expects to render its decision on the claim.

13.    Appeal Procedure.  If the claimant’s claim is denied, the claimant (or his or her authorized representative) may apply in writing to the Administrator for a review of the decision denying the claim.  Review must be requested within sixty (60) days following the date the claimant received the written notice of their claim denial or else the claimant loses the right to review.  The claimant (or representative) then has the right to review and obtain copies of all documents and other information relevant to the claim, upon request and at no charge, and to submit issues and comments in writing.  The Administrator will provide written notice of his or her decision on review within sixty (60) days after it receives a review request.  If additional time (up to sixty (60) days) is needed to review the request, the claimant (or representative) will be given written notice of the reason for the delay.  This notice of extension will indicate the special circumstances requiring the extension of time and the date by which the Administrator expects to render its decision.  If the claim is denied (in full or in part), the claimant will be provided a written notice explaining the specific reasons for the denial and referring to the provisions of the Plan on which the denial is based.  The notice shall also include a statement that the claimant will be provided, upon request and free of charge, reasonable access to, and copies of, all documents and other information relevant to the claim and a statement regarding the claimant’s right to bring an action under Section 502(a) of ERISA.

14.    Source of Payments.  All Severance Benefits and Retention Incentives will be paid in cash from the general funds of Netflix; no separate fund will be established under the Plan; and the Plan will have no assets.  No right of any person to receive any payment under the Plan will be any greater than the right of any other general unsecured creditor of Netflix.

15.    Inalienability.  In no event may any current or former employee of the Company  sell, transfer, anticipate, assign or otherwise dispose of any right or interest under the Plan.  At no time will any such right or interest be subject to the claims of creditors nor liable to attachment, execution or other legal process.

16.    No Enlargement of Employment Rights.  Neither the establishment or maintenance of the Plan, any amendment of the Plan, nor the making of any benefit payment hereunder, will be construed to confer upon any individual any right to be continued as an employee of the Company.  The Company expressly reserves the right to discharge any employee at any time, with or without cause.  However, as described in the Plan, a Covered Executive may be entitled to Severance Benefits under the Plan depending upon the circumstances of his or her termination of employment.

17.    Successors.  Any successor to Netflix of all or substantially all of Netflix’s business and/or assets (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) will assume the obligations under the Plan and agree expressly to perform the obligations under the Plan in the same manner and to the same extent as Netflix would be required to perform such obligations in the absence of a succession.  For all purposes under the Plan, the term “Company” will include any successor to the Company’s business and/or assets which become bound by the terms of the Plan by operation of law, or otherwise.

18.    Applicable Law.  The provisions of the Plan will be construed, administered and enforced in accordance with ERISA and, to the extent applicable, the internal substantive laws of the State of California (with the exception of its conflict of laws provisions).

19.    Severability.  If any provision of the Plan is held invalid or unenforceable, its invalidity or unenforceability will not affect any other provision of the Plan, and the Plan will be construed and enforced as if such provision had not been included.
20.    Headings.  Headings in this Plan document are for purposes of reference only and will not limit or otherwise affect the meaning hereof.

21.    Indemnification.  Netflix hereby agrees to indemnify and hold harmless the officers and employees of the Company, and the members of their boards of directors, from all losses, claims, costs or other liabilities arising from their acts or omissions in connection with the administration, amendment or termination of the Plan, to the maximum extent permitted by applicable law.  This indemnity will cover all such liabilities, including judgments, settlements and costs of defense.  Netflix will provide this indemnity from its own funds to the extent that insurance does not cover such liabilities.  This indemnity is in addition to and not in lieu of any other indemnity provided to such person by Netflix.

22.    Additional Information.

	
			
	Plan Name:
	 
	Executive Severance and Retention Incentive Plan

	Plan Sponsor:
	 
	Netflix, Inc.
100 Winchester Circle
Los Gatos, CA 95032

	Identification Numbers:    
	 
	EIN: - 77-0467272
PLAN:  501

	Plan Year:    
	 
	Calendar year

	Plan Administrator:
	 
	Netflix, Inc.
Attention:  Chief Talent Officer 
100 Winchester Circle
Los Gatos, CA 95032
(408) 540-3700

	Agent for Service of Legal Process:    
	 
	Netflix, Inc.
Attention:  General Counsel
100 Winchester Circle
Los Gatos, CA 95032

(408) 540-3700

Service of process may also be made upon the 
Plan Administrator.

	Type of Plan
	 
	Bonus Plan/Severance Plan/Employee Welfare Benefit Plan

	Plan Costs    
	 
	The cost of the Plan is paid by the Employer.

23.    Statement of ERISA Rights.
As a Covered Executive under the Plan, you have certain rights and protections under ERISA:

(a)You may examine (without charge) all Plan documents, including any amendments and copies of all documents filed with the U.S. Department of Labor, such as the Plan’s annual report (IRS Form 5500).  These documents are available for your review in Netflix’s Human Resources Department.

(b)You may obtain copies of all Plan documents and other Plan information upon written request to the Plan Administrator.  A reasonable charge may be made for such copies.
In addition to creating rights for Covered Executives, ERISA imposes duties upon the people who are responsible for the operation of the Plan.  The people who operate the Plan (called “fiduciaries”) have a duty to do so prudently and in the interests of you and the other Covered Executives.  No one, including Netflix, Inc., any Affiliate or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit under the Plan or exercising your rights under ERISA.  If your claim for a severance benefit is denied, in whole or in part, you must receive a written explanation of the reason for the denial.  You have the right to have the denial of your claim reviewed.  (The claim review procedure is explained in Sections 12 and 13 above.)
Under ERISA, there are steps you can take to enforce the above rights.  For instance, if you request materials and do not receive them within thirty (30) days, you may file suit in a federal court.  In such a case, the court may require the Plan Administrator to provide the materials and to pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator.  If you have a claim which is denied or ignored, in whole or in part, you may file suit in a state or federal court.  If it should happen that you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court.
In any case, the court will decide who will pay court costs and legal fees.  If you are successful, the court may order the person you have sued to pay these costs and fees.  If you lose, the court may order you to pay these costs and fees, for example, if it finds that your claim is frivolous.
If you have any questions regarding the Plan, please contact the Plan Administrator.  If you have any questions about this statement or about your rights under ERISA, you may contact the nearest area office of the Employee Benefits Security Administration (formerly the Pension and Welfare Benefits Administration), U.S. Department of Labor, listed in your telephone directory, or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W. Washington, D.C. 20210.  You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.
24.    Participation by Affiliates.
By participating in the Plan an Affiliate is deemed to agree to all of its terms, including (but not limited to) the provisions granting exclusive authority to Netflix to amend the Plan and granting exclusive authority to the Administrator to administer and interpret the Plan.  The liabilities incurred under the Plan to the Covered Executives shall be solely the liabilities of Netflix.  However, the costs of the Plan may be apportioned among Netflix and its Affiliates as the Administrator (in its discretion) may determine.  All acts required of the Company under the Plan may be performed by Netflix for itself, and its Affiliates, as determined by the Administrator (in its discretion).
25.    Execution.

In Witness Whereof, Netflix, by its duly authorized officer, has executed this amended Plan on the date indicated below.
	
			
	 
	 
	Netflix, Inc.

	 
	 
	By_______________________________________

	 
	 
	Title______________________________________

	 
	 
	Date _____________________________________

Exhibit A -- Affiliates Excluded from the Plan
 
None

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