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                                                                    EXHIBIT 10.1

                                 PARTNERRE LTD.
                             EMPLOYEE INCENTIVE PLAN
                   Originally Effective February 6, 1996, and
               As Amended and Restated Effective February 26, 2002

Purpose

                  The purpose of the Plan is to provide a means through which
the Company and its Subsidiaries may attract able persons to enter and remain in
their employ and to provide a means whereby those key employees and other
persons upon whom the responsibilities of the successful administration and
management of the Company rest, and whose present and potential contributions to
the welfare of the Company are of importance, can acquire and maintain stock
ownership, thereby strengthening their commitment to the welfare of the Company
and promoting an identity of interest between stockholders and these key
employees. It is intended that certain options granted under this Plan may
qualify as "incentive stock options" under Section 422 of the Code.

Definitions "Award" means, individually or collectively, any award of Incentive
             -----
Stock Options, Nonqualified Stock Options, Restricted Stock, Phantom Stock
Units, Performance Units or Performance Shares.

"Award Agreement" means a written agreement between the Company and a
 ---------------
Participant setting forth the specific terms of an Award.

"Performance Period" means a period of time within which performance is measured
 ------------------
for the purpose of determining whether an Award of Performance Units or
Performance Shares has been earned.

"Board" means the Board of Directors of the Company.
 -----

"Change in Control" shall, unless the Board otherwise directs by resolution
 -----------------
adopted prior thereto, be deemed to occur if (i) any "person" (as that term is
used in Sections 13 and 14(d)(2) of the U.S. Securities and Exchange Act of 1934
("Exchange Act")), is or becomes the beneficial owner (as that term is used in
Section 13(d) of the Exchange Act), directly or indirectly, of 40% or more of
the voting Stock, (ii) within any 24-month period, the persons who were
directors of the Company immediately before the beginning of such period (the
"Incumbent Directors") shall cease (for any reason other than death) to
 -------------------
constitute at least a majority of the Board, provided that any director who was
not a director as of the beginning of such period shall be deemed to be an
Incumbent Director if such director was elected to the Board by, or on the
recommendation of or with the approval of, at least two-thirds of the directors
who then qualified as Incumbent Directors either actually or by prior operation
of this subsection 2(e)(ii), or (iii) the occurrence of a transaction requiring
shareholder approval for the acquisition of the Company or any of its
subsidiaries (together with the Company, the "Group") by an entity other than a
member of the Group or any subsidiary of such member, through the purchase of
assets, by merger or otherwise.

"Code" means the U.S. Internal Revenue Code of 1986, as amended.
 ----

"Committee" means the Human Resources Committee of the Board or such other
 ---------
committee as the Board may appoint to administer the Plan.

"Common Stock" or "Stock" means the authorized common shares of, par value $1.00
 ------------      -----
per share, the Company. "Company" means PartnerRe Ltd.
                         -------

"Consultant" means any person, including any advisor, engaged by the Company or
 ----------
a Subsidiary to render consulting, advisory or other services and who is
compensated for such services. The term Consultant shall not include any
Director.

"Date of Grant" means the date on which the granting of an Award is authorized
 -------------
or such other date as may be specified in such authorization.

"Disqualifying Disposition" means any disposition (including any sale) of Stock
 -------------------------
acquired by exercise of an Incentive Stock Option made within the period which
is (a) two years after the date the Participant was granted the Incentive Stock
Option or (b) one year after the date the Participant acquired Stock by
exercising the Incentive Stock Option.

"Dividend Equivalents" shall have the meaning specified in Section 9 hereof.
 --------------------

"Eligible Person" means an Employee or a Consultant.
 ---------------

"Employee" means a current or prospective common law employee of the Company or
 --------
a Subsidiary.

"Fair Market Value" of a share of Stock on a given date means (A) if the Stock
 -----------------
is listed on a national securities

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exchange, the mean between the highest and lowest sale prices reported as having
occurred on the primary exchange with which the Stock is listed and traded on
the date prior to such date, or, if there is no such sale on that date, then on
the last preceding date on which such a sale was reported, or (B) if the Stock
is not listed on any national securities exchange but is quoted in the National
Market System of the National Association of Securities Dealers Automated
Quotation System on a last sale basis, the average between the high bid price
and low ask price reported on the date prior to such date, or, if there is no
such sale on that date then on the last preceding date on which such a sale was
reported. If the Stock is not quoted on NASDAQ-NMS or listed on an exchange, or
representative quotes are not otherwise available, the Fair Market Value shall
mean the amount determined by the Board in good faith to be the fair market
value per share of Stock, on a fully diluted basis.

"Incentive Stock Option" means an Option intended to qualify as an incentive
 ----------------------
stock option within the meaning of Section 422 of the Code and the regulations
promulgated thereunder.

"Nonqualified Stock Option" means an Option not intended to qualify as an
 -------------------------
Incentive Stock Option.

"Option" means an Incentive Stock Option or a Nonqualified Stock Option granted
 ------
pursuant to the Plan.

"Original Effective Date" means February 2, 1996.
 -----------------------

"Participant" means an Eligible Person to whom an Award is granted pursuant to
 -----------
the Plan or, if applicable, such other Eligible Person who holds an outstanding
Award.

"Performance Goals" means the performance objectives of the Company during a
 -----------------
Performance Period or a Restricted Period established for the purpose of
determining whether, and to what extent, Awards will be earned for a Performance
Period or a Restricted Period.

"Performance Period" means the period for which Performance Goals are to be
 ------------------
measured with respect to a Performance Unit or Performance Share.

"Performance Unit" or "Performance Share" means an Award granted pursuant to
 ----------------      -----------------
Section 8 of the Plan.

"Phantom Stock Unit" means a hypothetical investment-equivalent equal to the
 ------------------
Fair Market Value of a share of Stock granted in connection with an Award made
under Section 8 of the Plan.

"Plan" means the PartnerRe Ltd. Employee Incentive Plan, as amended from time to
 ----
time.

"Restricted Period" means, with respect to any share of Restricted Stock or
 -----------------
Phantom Stock Unit, the period of time determined by the Committee during which
such share of Restricted Stock or Phantom Stock Unit is subject to the
restrictions set forth in Section 9.

"Restricted Stock" means shares of Common Stock issued to a Participant subject
 ----------------
to the restrictions set forth in Section 9.

"Restricted Stock Award" means an Award granted under Section 9 of the Plan.
 ----------------------

"Subsidiary" means any corporation of which a majority of the outstanding voting
 ----------
stock or voting power is beneficially owned directly or indirectly by the
Company and otherwise as provided in Section 86 of the Companies Act 1981 of
Bermuda.

Duration

                  The Plan expires on the tenth anniversary of the Original
Effective Date, and no further Awards may be made after the expiration thereof.

                  Notwithstanding the term expressed above, the Plan shall
continue in effect until all matters relating to the payment of Awards and
administration of the Plan have been settled.

Administration

The Committee shall have authority to administer the Plan, or delegate certain
matters to the Company's Chief Executive Officer, including, without limitation:

..   Select the Eligible Persons to participate in the Plan;

..   Determine the nature and extent of the Awards to be made to each
    Participant;

..   Determine the time or times when Awards will be made;

..   Determine the duration of each Performance Period or Restricted Period;

..   Determine the conditions to which the payment of Awards may be subject;

..   Establish and adjudicate the Performance Goals and Awards consequent
    thereon for each Performance Period or Restricted Period;

..   Accelerate the vesting of any outstanding Award and reduce the Restricted
    Period applicable to any Award;

..   Prescribe the form or forms of Award Agreements;

..   and Cause records to be established in which there shall be entered, from
    time to time as Awards are made to

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Participants, the date of each Award, the number of Options, Phantom Stock
Units, Performance Units, Performance Shares and shares of Restricted Stock
awarded by the Committee to each Participant, and the duration of any applicable
vesting period, Performance Period or Restricted Period.

Eligibility.

     General. Participation shall be limited to Eligible Persons who have
     -------
received written notification from the Committee, or from a person designated by
the Committee, that they have been selected to participate in the Plan. Except
in the case of Incentive Stock Options, Awards may be granted to Employees and
Consultants.

     Incentive Stock Option Limitation. Incentive Stock Options may be granted
     ---------------------------------
only to Employees. Stock Subject to the Plan.

     Share Reserve. Subject to Section 11 hereof relating to adjustments, the
     -------------
total number of shares of Stock which may be granted pursuant to Awards
hereunder shall not exceed, in the aggregate, 3,500,000 shares of Stock.

     Source. The stock to be granted or optioned under the Plan shall be shares
     ------
of authorized but unissued Stock or previously issued shares of Stock reacquired
by the Company on the open market or by private purchase.

     Reversion of Shares. If any Award shall for any reason expire, be forfeited
     -------------------
or otherwise terminate, in whole or in part, the shares of Stock not acquired
under such Award shall revert to and again become available for issuance under
the Plan.

     Compliance under the Companies Act. Awards under the Plan shall be bona
     ----------------------------------
fide in compliance with Section 39A(4)(b) of the Companies Act 1981 of Bermuda.

Options.

     General. Options granted hereunder shall be in such form and shall contain
     -------
such terms and conditions as the Committee shall deem appropriate. All Options
shall be separately designated Incentive Stock Options or Nonqualified Stock
Options at the time of grant, and, if certificates are issued, a separate
certificate or certificates will be issued for shares of Common Stock purchased
on exercise of each type of Option. The provisions of separate Options shall be
set forth in an Award Agreement, which agreements need not be identical, and
each Option shall include (through incorporation of provisions hereof by
reference in the Award Agreement or otherwise) the substance of each of the
following provisions:

Term. Subject to Section 7(b) hereof in the case of Incentive Stock Options, no
----
Option granted hereunder shall be exercisable after the expiration of ten (10)
years from the date it was granted.

Exercise Price. Subject to Section 7(b) hereof in the case of Incentive Stock
--------------
Options, the exercise price per share of Stock for each Option shall be set by
the Committee at the time of grant but shall not be less than the par value per
share of Stock.

Payment for Stock. Payment for shares of Stock acquired pursuant to Options
-----------------
granted hereunder shall be made in full, upon exercise of the Options (A) in
immediately available funds in United States dollars, by wire transfer,
certified or bank cashier's check, (B) by surrender to the Company of shares of
Stock which have either (I) have been held by the Holder for at least
six-months, or (II) were acquired from a person other than the Company, and have
a Fair Market Value equal to such aggregate purchase price, (C) by delivering to
the Company a copy of irrevocable instructions to a stockbroker to deliver
promptly to the Company an amount of sale or loan proceeds sufficient to pay the
aggregate exercise price, (D) by any combination of (A), (B), or (C) above, or
(E) by any other means approved by the Committee.

Vesting. Options shall vest and become exercisable in such manner and on such
-------
date or dates set forth in the Award Agreement, as may be determined by the
Committee; provided, however, that notwithstanding any vesting dates set by the
Committee, the Committee may in its sole discretion accelerate the vesting of
any Option, which acceleration shall not affect the terms and conditions of any
such Option other than with respect to vesting.

Transferability of Options. An Option shall not be transferable except by will
--------------------------
or by the laws of descent and distribution and shall be exercisable during the
lifetime of the Participant only by the Participant; provided, however, that the
Participant may, by delivering written notice to the Company, in a form
satisfactory to the Company, designate a third party who, in the event of the
death of the Participant, shall thereafter be entitled to exercise the Option.
Notwithstanding the foregoing, a Nonqualified Stock Option shall be transferable
to the extent provided in the Award Agreement.

Special Provisions Applicable to Incentive Stock Options.
--------------------------------------------------------

Exercise Price of Incentive Stock Options. Subject to the provisions of
-----------------------------------------
subsection (ii) hereof, the exercise price of each Incentive Stock Option shall
be not less than one hundred percent (100%) of the Fair Market Value of the
Stock subject to the Option on the date the Option is granted.

Ten Percent (10%) Shareholders. No Incentive Stock Option may be granted to an
------------------------------
Employee who, at the time the option is granted, owns directly, or indirectly
within the meaning of Section 424(d) of the Code, stock possessing more than 10
percent of the total combined voting power of all classes of stock of the
Company or of any parent or subsidiary thereof, unless such option (A) has an
exercise price of at least 110 percent of the Fair Market Value on the date of
the grant of such option; and (B) cannot be exercised more than five years after
the date it is granted.

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$100,000 Limitation. To the extent the aggregate Fair Market Value (determined
-------------------
as of the date of grant) of Stock for which Incentive Stock Options are
exercisable for the first time by any Participant during any calendar year
(under all plans of the Company and its Affiliates) exceeds $100,000, such
excess Incentive Stock Options shall be treated as Nonqualified Stock Options.

Disqualifying Dispositions. Each Participant who receives an Incentive Stock
--------------------------
Option must agree to notify the Company in writing immediately after the
Participant makes a Disqualifying Disposition of any Stock acquired pursuant to
the exercise of an Incentive Stock Option.

Performance Units and Performance Shares

Grant of Performance Units/Shares. Subject to the terms of the Plan, Performance
---------------------------------
Units or Performance Shares may be granted to Eligible Persons at any time and
from time to time, as shall be determined by the Committee. The Committee shall
have complete discretion in determining the number of Performance Units or
Performance Shares granted to each Eligible Person.

Value of Performance Units/Shares. Each Performance Unit shall have an initial
---------------------------------
value that is established by the Committee at the time of grant. Each
Performance Share shall have an initial value equal to the Fair Market Value of
a share of Common Stock at the time of grant. The Committee shall set
Performance Goals for Performance Periods in its discretion which, depending on
the extent to which they are met, will determine the number and/or value of
Performance Units or Performance Shares that will be paid out to the
Participants. The Performance Period pertaining to each Performance Unit or
Performance Share Award shall be between two (2) and six (6) years in length,
and shall be established by the Committee at the time of grant.

Earning of Performance Units/Shares. After the applicable Performance Period has
-----------------------------------
ended, the Participant shall be entitled to receive payout on the number of
Performance Units or Performance Shares earned by the Participant over the
Performance Period, to be determined by the Committee as a function of the
extent to which the corresponding Performance Goals have been achieved.

Form and Timing of Payment of Performance Units/Shares. Payment of earned
------------------------------------------------------
Performance Units and/or Performance Shares shall be made in a single lump sum,
within forty-five (45) calendar days following the close of the applicable
Performance Period. The Committee, in its discretion, may pay earned Performance
Units or Performance Shares in the form of cash or in Stock (or in a combination
thereof) which have an aggregate Fair Market Value equal to the value of the
earned Performance Units or Performance Shares determined as of the close of the
applicable Performance Period.

Termination of Employment. Unless otherwise provided in a Participant's Award
-------------------------
Agreement, in the event that a Participant's last day of employment with the
Company occurs prior to the last day of a Performance Period, all Performance
Units or Performance Shares which relate to such Performance Period shall be
forfeited by the Participant.

Nontransferability. A Participant's rights with respect to Performance Units and
------------------
Performance Shares may not be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and
distribution.

Restricted Stock Awards and Phantom Stock Units

Award of Restricted Stock and Phantom Stock Units.
-------------------------------------------------

The Committee shall have the authority (A) to grant Restricted Stock and Phantom
Stock Units, (B) to issue Restricted Stock to Participants, and (C) to establish
terms, conditions and restrictions applicable to such Restricted Stock and
Phantom Stock Units, including the Restricted Period, which may differ with
respect to each Participant, the time or times at which Restricted Stock or
Phantom Stock Units shall be granted or become vested and the number of shares
or units to be covered by each grant.

The holder of a Restricted Stock Award shall execute and deliver to the
Secretary of the Company an Award Agreement with respect to such Restricted
Stock and the appropriate blank stock powers with respect to the Restricted
Stock covered by such agreements. If a Participant shall fail to execute the
Award Agreement and stock powers, the Award shall be null and void. Subject to
the restrictions set forth in Section 9(b), the Participant shall generally have
the rights and privileges of a shareholder as to such Restricted Stock,
including, without limitation, the right to vote such Restricted Stock and
receive dividends.

In the case of a Restricted Stock Award, the Company shall cause stock
certificates registered in the name of the Participant to be issued. During the
Restricted Period, such certificates shall remain in the custody of the Company
or its agent.

In the case of an Award of Phantom Stock Units, no shares of Common Stock shall
be issued at the time the Award is made, and the Company will not be required to
set aside a fund for the payment of any such Award. The Committee shall, in its
discretion, determine whether to credit to the account of, or to currently pay
to, each Participant who is awarded Phantom Stock Units an amount equal to the
cash dividends paid by the Company upon one share of Stock for each Phantom
Stock Unit then credited to such Participant's account ("Dividend Equivalents").
                                                         --------------------
Dividend Equivalents credited to a Participant's account may be subject to
forfeiture and may bear interest at a rate and subject to such terms as
determined by the Committee.

                                       4

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Restrictions.
------------

Restricted Stock awarded to a Participant shall be subject to the following
restrictions until the expiration of the Restricted Period: (1) the Participant
shall not be entitled to delivery of the stock certificate; (2) the relevant
shares shall be subject to the restrictions on transferability established at
the time of grant; (3) the relevant shares shall be subject to forfeiture to the
extent provided in 0 and, to the extent such shares are forfeited, such shares
shall be canceled and all rights of the Participant to such shares and as a
shareholder in respect of them shall terminate.

Phantom Stock Units awarded to any Participant shall be subject to the following
restrictions until the expiration of the Restricted Period: (1) the units shall
be subject to forfeiture to the extend provided in Section 9(d), and to the
extent such units are forfeited, all rights of the Participant to such units
shall terminate without further obligation on the part of the Company and (2)
any other restrictions which the Committee may determine in advance are
necessary or appropriate.

Restricted Period. The Restricted Period of Restricted Stock and Phantom Stock
-----------------
Units shall commence on the Date of Grant and shall expire (i) on such date or
dates as may be established by the Committee at the time of grant, (ii) upon the
achievement of prescribed Performance Goals (in each case, as set forth in a
Participant's Award Agreement), or (iii) upon any earlier date determined by the
Committee in its discretion.

Forfeiture Provisions. Unless otherwise provided in a Participant's Award
---------------------
Agreement, in the event that a Participant's last day of employment occurs prior
to the last day of the Restricted Period, that portion of the Restricted Stock
Award or Phantom Stock Units with respect to which restrictions have not expired
shall be forfeited.

Delivery of Restricted Stock and Settlement of Phantom Stock Units. Subject to
------------------------------------------------------------------
Section 9(d) hereof, upon the expiration of the Restricted Period with respect
to any shares of Stock covered by a Restricted Stock Award, a stock certificate
evidencing the shares of Restricted Stock (to the nearest full share) shall be
delivered without charge to the Participant, or his beneficiary, free of all
restrictions under the Plan. Upon the expiration of the Restricted Period with
respect to any Phantom Stock Units, the Company shall deliver to the Participant
or his beneficiary without any charge one share of Stock for each Phantom Stock
Unit which has not then been forfeited and with respect to which the Restricted
Period has expired and cash equal to any Dividend Equivalents credited with
respect to each such vested unit and the interest thereon, if any; provided,
however, that the Committee may, in its sole discretion, elect to pay cash or
part cash and part Stock in lieu of delivering only Stock for vested units,
based on the Market Value of the Stock on the last day of the Restricted Period.

Payment for Restricted Stock. A Participant shall not be required to make any
----------------------------
payment for Stock received pursuant to a Restricted Stock Award.

General

Adjustment of Performance Goals. The Board may, during any Performance Period or
-------------------------------
Restricted Period, make such adjustments to Performance Goals as it may deem
appropriate, to compensate for, or reflect, any significant changes that may
have occurred during such Performance Period or Restricted Period in (i)
applicable accounting rules or principles or changes in the Company's method of
accounting or in that of any other corporation whose performance is relevant to
the determination of whether an Award has been earned or (ii) tax laws or other
laws or regulations that alter or affect the computation of the measures of
Performance Goals used for the calculation of Awards.

Additional provisions of an Award. Awards made under the Plan may be subject to
---------------------------------
such other provisions as the Committee determines appropriate including, without
limitation, provisions to comply with applicable securities laws and applicable
tax withholding requirements.

Privileges of Stock Ownership. Except as otherwise specifically provided in the
-----------------------------
Plan, no person shall be entitled to any of the privileges of stock ownership in
respect of shares of Stock subject to Awards granted hereunder until such shares
have been duly issued.

Government and Other Regulations. The obligation of the Company to make payment
--------------------------------
of Awards in Stock or otherwise shall be subject to all applicable laws, rules,
and regulations, and to such approvals by governmental agencies as may be
required and to which the Company is subject. The Company shall use its
reasonable efforts to cause the shares of Stock reserved under the Plan to be
registered under the U.S. Securities Act of 1933, as amended, on Form S-8 prior
to the issuance of any shares of Stock under the Plan.

Tax Withholding. Notwithstanding any other provision of the Plan, the Company or
---------------
a Subsidiary, as appropriate, shall have the right to deduct from all Awards, to
the extent paid in cash, all applicable taxes required by law to be withheld
with respect to such Awards and, in the case of Awards paid in Stock, the
Participant or other person

                                       5

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receiving such Stock may be required to pay to the Company or a Subsidiary, as
appropriate prior to delivery of such Stock, the amount of any such taxes which
the Company or Subsidiary is required to withhold, if any, with respect to such
Stock. Subject to the approval of the Committee, the Company may accept shares
of Stock of equivalent Fair Market Value in payment of such withholding tax
obligations.

Claim to Awards and Employment Rights. Except as provided herein or in any Award
-------------------------------------
Agreement, no employee or other person shall have any claim or right to be
granted an Award under the Plan nor, having been selected for the grant of an
Award, to be selected for a grant of any other Award. Neither this Plan nor any
action taken hereunder shall be construed as giving any Participant any right to
be retained in the employ of the Company or a Subsidiary.

Conditions. Each Participant to whom Awards are granted under the Plan shall be
----------
required to enter into an Award Agreement in a form authorized by the Committee.

Designation and Change of Beneficiary. Each Participant shall file with the
-------------------------------------
Committee a written designation of one or more persons as the beneficiary who
shall be entitled to receive the amounts payable with respect to Awards granted
hereunder, if any, due under the Plan upon his death. A Participant may, from
time to time, revoke or change his beneficiary designation without the consent
of any prior beneficiary by filing a new designation with the Committee. The
last such designation received by the Committee shall be controlling; provided,
however, that no designation, or change or revocation thereof, shall be
effective unless received by the Committee prior to the Participant's death, and
in no event shall it be effective as of a date prior to such receipt.

No Liability of Committee Members. No member of the Committee shall be
---------------------------------
personally liable by reason of any contract or other instrument executed by such
member or on his behalf in his capacity as a member of the Committee nor for any
mistake of judgment made in good faith, and the Company shall indemnify and hold
harmless each member of the Committee and each other employee, officer or
director of the Company to whom any duty or power relating to the administration
or interpretation of the Plan may be allocated or delegated, against any cost or
expense (including counsel fees) or liability (including any sum paid in
settlement of a claim) arising out of any act or omission to act in connection
with the Plan unless arising out of such person's own fraud or bad faith.

Governing Law. The Plan shall be governed by and construed in accordance with
-------------
the internal laws of Bermuda without reference to the principles of conflicts of
law thereof.

Funding. No provision of the Plan shall require the Company for the purpose of
-------
satisfying any obligations under the Plan, to purchase assets or place any
assets in a trust or other entity to which contributions are made or otherwise
to segregate any assets, nor shall the Company maintain separate bank accounts,
books, records or other evidence of the existence of a segregated or separately
maintained or administered fund for such purposes. Participants shall have no
rights under the Plan other than as unsecured general creditors of the Company,
except that insofar as they may have become entitled to payment of additional
compensation by performance of services, they shall have the same rights as
other employees under general law.

Nontransferability. Except as otherwise provided herein with respect to
------------------
Nonqualified Options, a Participant's rights and interest under the Plan,
including amounts payable, may not be sold, assigned, donated, or transferred or
otherwise disposed of, mortgaged, pledged or encumbered except, in the event of
a Participant's death, to a designated beneficiary to the extent permitted by
the Plan, or in the absence of such designation, by will or the laws of descent
and distribution.

Relationship to Other Benefits. No payment under the Plan shall be taken into
------------------------------
account in determining any benefits under any pension, retirement, profit
sharing, group insurance or other benefit plan of the Company or any Subsidiary
except as otherwise specifically provided.

Expenses. The expenses of administering the Plan shall be borne by the Company
--------
and its Subsidiaries.

Pronouns. Masculine pronouns and other words of masculine gender shall refer to
--------
both men and women.

Titles and Headings. The titles and headings of the sections in the Plan are for
-------------------
convenience of reference only, and in the event of any conflict, the text of the
Plan, rather than such titles or headings shall control.

Changes in Capital Structure

Awards granted hereunder shall be subject to adjustment or substitution, as
determined by the Board in its sole discretion, as to the number, price or kind
of a share of Stock or other consideration subject to such Awards or as

                                       6

<PAGE>

otherwise determined by the Board to be equitable (i) in the event of changes in
the outstanding Stock or in the capital structure of the Company, by reason of
stock dividends, stock splits, recapitalizations, reorganizations, mergers,
consolidations, combinations, exchanges, or other relevant changes in
capitalization occurring after the Date of Grant of any such Award or (ii) in
the event of any change in applicable laws or any change in circumstances which
results in or would result in any substantial dilution or enlargement of the
rights granted to, or available for, Participants in the Plan, or which
otherwise warrants equitable adjustment. In addition, in the event of any such
adjustments or substitution, the aggregate number of shares of Stock available
under the Plan shall be appropriately adjusted by the Board, whose determination
shall be conclusive. The Company shall give each Participant notice of an
adjustment hereunder and, upon notice, such adjustment shall be conclusive and
binding for all purposes.

Effect of Change in Control

In the event of a Change in Control, notwithstanding any vesting schedule
established by the Committee (i) with respect to an Award of Restricted Stock or
Phantom Stock Units, the Restricted Period shall expire immediately with respect
to 100 percent of the shares of Restricted Stock or Phantom Stock Units subject
to such Award, with effect from the day preceding the date of such change, and
(ii) all outstanding Options shall immediately vest and become exercisable.

In the event of a Change in Control, all incomplete Performance Periods in
effect on the date the Change in Control occurs shall end on the day preceding
the date of such change, and the Company shall cause to be paid to each
Participant the full amount of any Performance Units or Performance Shares
relating to such Performance Period.

The obligations of the Company under the Plan shall be binding upon any
successor corporation or organization resulting from the merger, consolidation
or other reorganization of the Company, or upon any successor corporation or
organization succeeding to substantially all of the assets and business of the
Company. The Company agrees that it will make appropriate provisions for the
preservation of Participant's rights under the Plan in any agreement or plan
which it may enter into or adopt to effect any such merger, consolidation,
reorganization or transfer of assets.

Nonexclusivity of the Plan

Neither the adoption of this Plan by the Board nor the submission of this Plan
to the stockholders of the Company for approval shall be construed as creating
any limitations on the power of the Board to adopt such other incentive
arrangements as it may deem desirable, including, without limitation, the
granting of stock options under the Stock Option Plan, and such arrangements may
be either applicable generally or only in specific cases.

Amendments and Termination

The Board may at any time terminate the Plan. With the express written consent
of an individual Participant, the Board may cancel or reduce or otherwise alter
the outstanding Awards thereunder. The Board may, at any time, or from time to
time, amend or suspend and, if suspended, reinstate, the Plan in whole or in
part, provided, however, that without further stockholder approval the Board
shall not:

Increase the maximum number of shares of Stock which may be issued under the
Plan, except as provided in Section 11; or

Extend the termination date of the Plan.

The preceding notwithstanding, no amendment, suspension or termination of the
Plan shall cancel, reduce or otherwise adversely affect to a material extent any
Awards granted hereunder without the express written consent of the Participant
to whom such Award was granted.

                                       7<PAGE>

                                                                  Exhibit 10 (a)

                            INDEMNIFICATION AGREEMENT

                  THIS  AGREEMENT  is made and  entered  into as of the 21st day
of February, 2002 ("Agreement"), by and between InterTAN, Inc., a Delaware
corporation ("Company"), and James P. Maddox ("Indemnitee").

                                    RECITALS:

                  WHEREAS, highly competent persons have become more reluctant
to serve publicly-held corporations as directors or officers in other capacities
unless they are provided with adequate protection through insurance or adequate
indemnification against inordinate risks of claims and actions against them
arising out of their service to, and activities on behalf of, the corporation;
this is because such persons in service to corporations are being increasingly
subjected to expensive and time-consuming litigation relating to, among other
things, matters that traditionally would have been brought only against the
corporation or business enterprise itself; and

                  WHEREAS, the Board of Directors of the Company (the "Board")
has determined that, to attract and retain qualified individuals, the Company
will attempt to maintain on an ongoing basis, at its sole expense, liability
insurance to protect persons serving the Company and its subsidiaries from
certain liabilities; and

                  WHEREAS, the Board has determined that the increased
difficulty in attracting and retaining such persons is detrimental to the best
interests of the Company's stockholders and that the Company should act to
assure such persons that there will be increased certainty of such protection in
the future; and

                  WHEREAS, it is reasonable, prudent and necessary for the
Company contractually to obligate itself to indemnify, and to advance expenses
on behalf of, such persons to the fullest extent permitted by applicable law so
that they will serve or continue to serve the Company free from undue concern
that they will not be so indemnified; and

                  WHEREAS, this Agreement is a supplement to and in furtherance
of the Bylaws of the Company and any resolutions adopted pursuant thereto, and
shall not be deemed a substitute therefore, nor to diminish or abrogate any
rights of Indemnitee thereunder; and

                  WHEREAS, each of Section 145 of the General Corporation Law of
the State of Delaware ("DGCL") and the Bylaws is nonexclusive, and therefore
contemplates that contracts may be entered into with respect to indemnification
of directors, officers and employees; and

                  WHEREAS, Indemnitee is willing to serve, continue to serve and
to take on additional service for or on behalf of the Company on the condition
that he be so indemnified;

                  NOW, THEREFORE, in consideration of the premises and the
covenants contained herein, the Company and Indemnitee hereby covenant and agree
as follows:

<PAGE>

                  Section 1.        Services by Indemnitee. Indemnitee agrees to
continue to serve as a director or officer of the Company. Indemnitee may at any
time and for any reason resign from such position (subject to any other
contractual obligation or any obligation imposed by operation of law), in which
event the Company shall have no obligation under this Agreement to continue
Indemnitee in such position. This Agreement shall not be deemed an employment
contract between the Company (or any of its subsidiaries) and Indemnitee. This
Agreement shall continue in force after Indemnitee has ceased to serve as a
director or officer of the Company.

                  Section 2.        Indemnification - General. The Company shall
indemnify, and advance Expenses (as hereinafter defined) to, Indemnitee (a) as
provided in this Agreement and (b) to the fullest extent permitted by applicable
law in effect on the date hereof and as amended from time to time. The rights of
Indemnitee provided under the preceding sentence shall include, but shall not be
limited to, the rights set forth in the other Sections of this Agreement.

                  Section 3.        Proceedings Other Than Proceedings by or in
the Right of the Company. Indemnitee shall be indemnified under this Section 3
if, by reason of his Corporate Status (as hereinafter defined), he is, or is
threatened to be made, a party to or a participant in any threatened, pending,
or completed Proceeding (as hereinafter defined), other than a Proceeding by or
in the right of the Company. Pursuant to this Section 3, Indemnitee shall be
indemnified against all Expenses, judgments, penalties, fines and amounts paid
in settlement actually and reasonably incurred by him or on his behalf in
connection with such Proceeding or any claim, issue or matter therein, if he
acted in Good Faith and in a manner he reasonably believed to be in or not
opposed to the best interests of the Company and, with respect to any criminal
Proceeding, had no reasonable cause to believe his conduct was unlawful.

                  Section 4.        Proceedings by or in the Right of the
Company. Indemnitee shall be indemnified under this Section 4 if, by reason of
his Corporate Status, he is, or is threatened to be made, a party to or a
participant in any threatened, pending or completed Proceeding brought by or in
the right of the Company to procure a judgment in its favor. Pursuant to this
Section 4, Indemnitee shall be indemnified against all Expenses actually and
reasonably incurred by him or on his behalf in connection with such Proceeding
if he acted in Good Faith and in a manner he reasonably believed to be in or
not opposed to the best interests of the Company; provided that if applicable
law so provides, no indemnification against such Expenses shall be made in
respect of any claim, issue or matter in such Proceeding as to which Indemnitee
shall have been adjudged to be liable to the Company unless and to the extent
that the Court of Chancery of the State of Delaware, or the court in which such
Proceeding shall have been brought or is pending, shall determine that such
indemnification may be made.

                  Section 5.        Indemnification for Expenses of a Party Who
is Wholly or Partly Successful. Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee is, by reason of his Corporate Status,
a party to (or a participant in) and is successful, on the merits or otherwise,
in any Proceeding (including dismissal without prejudice), he shall be
indemnified to the maximum extent permitted by law against all Expenses
actually and reasonably incurred by him or on his behalf in connection
therewith. If Indemnitee is not wholly successful in such Proceeding but is
successful, on the merits or otherwise, as to one or more but less than all
claims, issues or matters

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in such Proceeding, the Company shall indemnify Indemnitee against all
Expenses actually and reasonably incurred by him or on his behalf in connection
with each successfully resolved claim, issue or matter. For purposes of this
Section and without limitation, the termination of any claim, issue or matter in
such a Proceeding by dismissal, with or without prejudice, shall be deemed to be
a successful result as to such claim, issue or matter.

                  Section 6.        Indemnification for Expenses of a Witness.
Notwithstanding any other provision of this Agreement, to the extent that
Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding to
which Indemnitee is not a party, he shall be indemnified against all Expenses
actually and reasonably incurred by him or on his behalf in connection
therewith; provided that he shall not be paid for time spent as such.

                  Section 7.        Advancement of Expenses. Notwithstanding any
provision of this Agreement to the contrary, the Company shall advance all
reasonable Expenses incurred by or on behalf of Indemnitee in connection with
any Proceeding in which Indemnitee is involved by reason of Indemnitee's
Corporate Status within 10 days after the receipt by the Company of a statement
or statements from Indemnitee requesting such advance or advances from time to
time, whether prior to or after final disposition of such Proceeding. Such
statement or statements shall reasonably evidence the Expenses incurred by
Indemnitee. Indemnitee hereby undertakes to repay any Expenses advanced if it
shall ultimately be determined that Indemnitee is not entitled to be indemnified
against such Expenses. Any advances and undertakings to repay pursuant to this
Section 7 shall be unsecured and interest free.

                  Section 8.        Procedure For Determination of Entitlement
to Indemnification.

                         (a)        To obtain  indemnification  under  this
Agreement,  Indemnitee  shall  submit to the  Company a written request,
including therein or therewith such documentation and information as is
reasonably available to Indemnitee and is reasonably necessary to determine
whether and to what extent Indemnitee is entitled to indemnification.
The Secretary of the Company shall, promptly upon receipt of such a request for
indemnification, advise the Board in writing that Indemnitee has requested
indemnification.

                         (b)        Upon  written  request by  Indemnitee  for
indemnification  pursuant  to the first  sentence of
Section 8(a), a determination, if required by applicable law, with respect to
Indemnitee's entitlement thereto shall be made in the specific case, unless
Indemnitee and the Company agree otherwise, by Independent Counsel (as
hereinafter defined) in a written opinion to the Board of Directors, a copy of
which shall be delivered to Indemnitee; and, if it is determined that Indemnitee
is entitled to indemnification, payment to Indemnitee shall be made within 10
days after such determination. Indemnitee shall cooperate with the person,
persons or firm making such determination with respect to Indemnitee's
entitlement to indemnification, including providing to such person, persons or
firm upon reasonable advance request any documentation or information that is
not privileged or otherwise protected from disclosure and that is reasonably
available to Indemnitee and reasonably necessary to such determination. Any
costs or expenses (including attorneys' fees and disbursements) incurred by
Indemnitee in so cooperating with the person, persons or firm making such
determination shall be paid by the Company (irrespective of the determination

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<PAGE>

as to Indemnitee's entitlement to indemnification) and the Company hereby
indemnifies and agrees to hold Indemnitee harmless therefrom.

                         (c)        The  Independent  Counsel  referred  to in
Section 8(b) shall be selected as provided in this Section 8(c). The
Independent Counsel shall be selected by the Board of Directors, and the
Company shall give written notice to Indemnitee advising him of the identity of
the Independent Counsel so selected. Within 10 days after such written notice
of selection shall have been given, Indemnitee may deliver to the Company a
written objection to such selection; provided that such objection may be
asserted only on the ground that the Independent Counsel so selected does not
meet the requirements of "Independent Counsel" as defined in Section 17, and
the objection shall set forth with particularity the factual basis of such
assertion. Absent a proper and timely objection, the person so selected shall
act as Independent Counsel. If such written objection is so made, the
Independent Counsel so selected may not serve as Independent Counsel unless and
until such objection is withdrawn or a court has determined that such objection
is without merit. If, within 20 days after submission by Indemnitee of a
written request for indemnification pursuant to Section 8(a), no Independent
Counsel shall have been selected and not objected to, Indemnitee may petition
the Court of Chancery of the State of Delaware or other court of competent
jurisdiction for resolution of any objection that shall have been made by
Indemnitee to the Company's selection of Independent Counsel and/or for the
appointment as Independent Counsel of a person selected by the Court or by such
other person as the Court shall designate, and the person with respect to whom
all objections are so resolved or the person so appointed shall then act as
Independent Counsel under Section 8(b). Upon the due commencement of any
judicial proceeding or arbitration pursuant to Section 10(a), Independent
Counsel shall be discharged and relieved of any further responsibility in such
capacity (subject to the applicable standards of professional conduct then
prevailing).

                         (d)        The Company shall not be required to obtain
the consent of  Indemnitee to the  settlement of any
Proceeding the Company has undertaken to defend if the Company assumes full and
sole responsibility for such settlement and the settlement grants Indemnitee a
complete and unqualified release in respect of the potential liability. The
Company shall not be liable for any amount paid by the Indemnitee in settlement
of any Proceeding that is not defended by the Company, unless the Company has
consented to such settlement, which consent shall not be unreasonably withheld.

                  Section 9.        Presumptions; Reliance and Effect of Certain
Proceedings.

                         (a)        In making a determination with respect to
entitlement to indemnification  hereunder, the person,
persons or firm making such determination shall presume that Indemnitee is
entitled to indemnification under this Agreement if Indemnitee has submitted a
request for indemnification in accordance with Section 8(a) and the Company
shall have the burden of proof to overcome that presumption in connection with
the making by any person, persons or firm of any determination contrary to that
presumption. Neither the failure of Independent Legal Counsel to have made a
determination prior to the commencement of any action pursuant to this Agreement
that indemnification is proper in the circumstances because Indemnitee has met
the applicable standard of

                                      -4-

<PAGE>

conduct, nor an actual determination thereby that Indemnitee has not met such
applicable standard of conduct, shall be a defense to the action or create a
presumption that Indemnitee has not met the applicable standard of conduct.

                         (b)        If the person,  persons or firm  empowered
under Section 8 to determine whether Indemnitee is entitled to indemnification
shall not have made a determination within 60 days after receipt by the Company
of the request therefore, the requisite determination of entitlement to
indemnification shall be deemed to have been made and Indemnitee shall be
entitled to such indemnification, absent (i) a misstatement by Indemnitee of a
material fact, or an omission of a material fact necessary to make Indemnitee's
statement not materially misleading, in connection with the request for
indemnification, or (ii) a prohibition of such indemnification under applicable
law; provided that such 60-day period may be extended for a reasonable time,
not to exceed an additional 30 days, if the person, persons or firm making the
determination with respect to entitlement to indemnification in good faith
requests in writing such additional time for the obtaining or evaluating of
documentation and/or information relating thereto.

                         (c)        The termination of any Proceeding or of any
claim, issue or matter therein, by judgment, order, settlement or conviction,
or upon a plea of nolo contend ere or its equivalent, shall not (except as
otherwise expressly provided in this Agreement) of itself adversely affect the
right of Indemnitee to indemnification or create a presumption that Indemnitee
did not act in Good Faith and in a manner he reasonably believed to be in or
not opposed to the best interests of the Company or, with respect to any
criminal Proceeding, that Indemnitee had reasonable cause to believe his
conduct was unlawful.

                         (d)        For purposes of any  determination  of Good
Faith, Indemnitee shall be deemed to have acted in Good Faith if Indemnitee's
action is based on the records or books of account of the Enterprise, including
financial statements, or on information supplied to Indemnitee by the officers,
agents or employees of the Enterprise in the course of their duties, or on the
advice of legal counsel for the Enterprise or on information or records given
or reports made to the Enterprise by an independent certified public accountant
or by an appraiser, financial advisor or other expert or professional selected
with reasonable care by the Enterprise. The provisions of this Section 9(d)
shall not be deemed to be exclusive or to limit in any way the other
circumstances in which the Indemnitee may be deemed to have met the applicable
standard of conduct set forth in this Agreement.

                         (e)        The knowledge and/or actions, or failure to
act, of any director, officer, agent or employee of the Enterprise shall not be
imputed to Indemnitee for purposes of determining the right to indemnification
under this Agreement.

                  Section 10.       Remedies of Indemnitee.

                         (a)        If (i) a  determination  is made  pursuant
to Section 8 that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section
7, (iii) no determination of entitlement to indemnification shall have been
made pursuant to Section 8(b) within 90 days after receipt by the Company of
the request for indemnification, (iv) payment of indemnification is not made
pursuant to Section 5, Section 6, the

                                      -5-

<PAGE>

last sentence of Section 8(b) or the last sentence of Section 17(g) within
10 days after receipt by the Company of a written request therefore, or (v)
payment of indemnification pursuant to Section 3 or Section 4 is not made
within 10 days after a determination has been made that Indemnitee is entitled
to indemnification, Indemnitee shall be entitled to an adjudication by the
Court of Chancery of the State of Delaware of his entitlement to such
indemnification or advancement of Expenses. Alternatively, Indemnitee, at his
option, may seek an award in arbitration to be conducted by a single arbitrator
pursuant to the Commercial Arbitration Rules of the American Arbitration
Association. Indemnitee shall commence such proceeding seeking an adjudication
or an award in arbitration within 180 days following the date on which
Indemnitee first has the right to commence such proceeding pursuant to this
Section 10(a); provided that the foregoing clause shall not apply in respect of
a proceeding brought by Indemnitee to enforce his rights under Section 5. The
Company shall not oppose Indemnitee's right to seek any such adjudication or
award in arbitration.

                         (b)        If a  determination  shall  have been made
pursuant to Section 8(b) that Indemnitee is not entitled to indemnification,
any judicial proceeding or arbitration commenced pursuant to this Section 10
shall be conducted in all respects as a de novo trial, or arbitration, on the
merits and Indemnitee shall not be prejudiced by reason of that adverse
determination.

                         (c)        If a determination  shall have been made
pursuant to Section 8(b) that Indemnitee is entitled to indemnification, the
Company shall be bound by such determination in any judicial proceeding or
arbitration commenced pursuant to this Section 10, absent (i) a misstatement by
Indemnitee of a material fact, or an omission of a material fact necessary to
make Indemnitee's statements not materially misleading, in connection with the
request for indemnification, or (ii) a prohibition of such indemnification
under applicable law.

                         (d)        If  Indemnitee,  pursuant to this  Section
10, seeks a judicial adjudication of or an award in arbitration to enforce his
rights under, or to recover damages for breach of, this Agreement, Indemnitee
shall be entitled to recover from the Company, and shall be indemnified by the
Company against, any and all expenses (of the types described in the definition
of Expenses in Section 17 of this Agreement) actually and reasonably incurred
by him in such judicial adjudication or arbitration unless it shall be finally
determined by the court or arbitrator before which such claim was brought that
it was brought in bad faith. Even if it shall be determined in such judicial
adjudication or arbitration that Indemnitee is entitled to receive part but not
all of the indemnification or advancement of Expenses sought, the expenses
incurred by Indemnitee in connection with such judicial adjudication or
arbitration shall be paid in full.

                         (e)        The Company  shall be  precluded  from
asserting in any judicial proceeding or arbitration commenced pursuant to this
Section 10 that the procedures and presumptions of this Agreement are not
valid, binding and enforceable and hereby stipulates, and shall so stipulate in
any such court or before any such arbitrator, that the Company is bound by all
the provisions of this Agreement.
                  Section 11.       Nonexclusivity; Insurance; Subrogation.

                         (a)        The rights of  indemnification  and to
receive advancement of Expenses as provided by this Agreement shall not be
deemed exclusive of any other rights to which Indemnitee

                                      -6-

<PAGE>

may at any time be entitled under applicable law, the Company's Certificate of
Incorporation, the Company's Bylaws, any agreement, a vote of stockholders or a
resolution of directors, or otherwise. No amendment, alteration or repeal of
this Agreement or of any provision hereof shall limit or restrict any right of
Indemnitee under this Agreement in respect of any action taken or omitted by
such Indemnitee in his Corporate Status prior to such amendment, alteration or
repeal. To the extent that a change in the DGCL, whether by statute or judicial
decision, permits greater indemnification or advancement of Expenses than would
be afforded currently under the Company's Certificate of Incorporation, Bylaws
and this Agreement, it is the agreement and intent of the parties hereto that
Indemnitee shall enjoy by this Agreement the greater benefits so afforded by
such change. No right or remedy herein conferred is intended to be exclusive of
any other right or remedy, and every other right and remedy shall be cumulative
and in addition to every other right and remedy given hereunder or now or
hereafter existing at law or in equity or otherwise. The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other right or remedy.

                         (b)        To the extent that the Company  maintains an
insurance policy or policies providing liability insurance for directors,
officers, employees, or agents of the Company or of any other corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise
such person serves at the request of the Company, Indemnitee shall be covered
by such policy or policies in accordance with its or their terms to the maximum
extent of the coverage available for any such director, officer, employee or
agent under such policy or policies.

                         (c)        In the event of any payment under this
Agreement, the Company shall be subrogated to the extent of such payment to all
of the rights of recovery of Indemnitee, who shall execute all documents
required and take all action necessary to secure such rights, including
execution of such documents as are necessary to enable the Company to bring
suit to enforce such rights.

                         (d)        The Company  shall not be liable under this
Agreement to make any payment of amounts otherwise indemnifiable (or for which
advancement is provided hereunder) hereunder if and to the extent that
Indemnitee has otherwise theretofore actually received such payment under any
insurance policy, contract, agreement or otherwise.

                         (e)        The Company's  obligation to indemnify or
advance Expenses hereunder to Indemnitee who is or was serving at the request
of the Company as a director, officer, employee or agent of any other
corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise shall be reduced by any amount Indemnitee has actually theretofore
received as indemnification or advancement of expenses from such other
corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise.

                  Section 12.       Duration of Agreement. This Agreement shall
continue until and terminate upon the later of: (i) 10 years after the date that
Indemnitee shall have ceased to serve as a director or officer of the Company
(or of any other corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise that Indemnitee served at the request of the
Company); or (ii) the final termination of any Proceeding then pending in
respect of which Indemnitee is granted

                                      -7-

<PAGE>

rights of indemnification or advancement of Expenses hereunder and of any
proceeding commenced by Indemnitee pursuant to Section 10 relating thereto.
This Agreement shall be binding upon the Company and its successors and assigns
and shall inure to the benefit of Indemnitee and his heirs, executors and
administrators.

                  Section 13.       Severability. If any provision or provisions
of this Agreement shall be held to be invalid, illegal or unenforceable for any
reason whatsoever: (i) the validity, legality and enforceability of the
remaining provisions of this Agreement (including without limitation each
portion of any Section of this Agreement containing any such provision held to
be invalid, illegal or unenforceable, that is not itself invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby and shall
remain enforceable to the fullest extent permitted by law; (ii) such provision
or provisions shall be deemed reformed to the extent necessary to conform to
applicable law and to give the maximum effect to the intent of the parties
hereto; and (iii) to the fullest extent possible, the provisions of this
Agreement (including without limitation each portion of any Section of this
Agreement containing any such provision held to be invalid, illegal or
unenforceable, that is not itself invalid, illegal or unenforceable) shall be
construed so as to give effect to the intent manifested thereby.

                  Section 14.       Exception to Right of Indemnification or
Advancement of Expenses. Notwithstanding any other provision of this Agreement,
but subject to Section 10, Indemnitee shall not be entitled to indemnification
or advancement of Expenses under this Agreement with respect to any Proceeding
brought by Indemnitee, or any claim therein, unless the bringing of such
Proceeding or making of such claim shall have been approved by the Board of
Directors.

                  Section 15.       Identical Counterparts. This Agreement may
be executed in one or more counterparts, each of which shall for all purposes
be deemed to be an original but all of which together shall constitute one and
the same Agreement. Only one such counterpart signed by the party against whom
enforceability is sought needs to be produced to evidence the existence of this
Agreement.

                  Section 16.       Headings.  The headings of the  paragraphs
of this Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction thereof.

                  Section 17.       Definitions.  For purposes or this
Agreement:

                         (a)        "Corporate Status" describes the status of a
person who is or was a director, officer, employee or agent of the Company or
of any other corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise that such person is or was serving at the request of
the Company.

                         (b)        "Disinterested  Director"  means a director
of the Company who is not and was not a party to the Proceeding in respect of
which indemnification is sought by Indemnitee.

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<PAGE>

                         (c)        "Effective Date" means the date first above
written.

                         (d)        "Enterprise"  shall mean the  Company and
any other corporation, partnership, joint venture, trust, employee benefit plan
or other enterprise of which Indemnitee is or was serving at the request of the
Company as a director, officer, employee, agent or fiduciary.

                         (e)        "Expenses" shall include all reasonable
attorneys' fees, retainers, court costs, transcript costs, fees of experts,
witness fees, travel and lodging expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees, and all other
disbursements or expenses of the types customarily incurred in connection with
prosecuting, defending, preparing to prosecute or defend, investigating, being
or preparing to be a witness in, or otherwise participating in, a Proceeding.

                         (f)        "Good  Faith"  shall  mean  Indemnitee
having acted in good faith and in a manner Indemnitee reasonably believed to be
in or not opposed to the best interests of the Company, and, with respect to
any criminal Proceeding, having had no reasonable cause to believe Indemnitee's
conduct was unlawful.

                         (g)        "Independent  Counsel"  means a law  firm,
or a member of a law firm, that is experienced in matters of corporation law
and neither presently is, nor in the past five years has been, retained to
represent: (i) the Company or any affiliate thereof or Indemnitee (other than
with respect to matters concerning the Indemnitee under this Agreement, or of
other indemnitees under similar indemnification agreements), or (ii) any other
party to the Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term "Independent Counsel" shall not include
any person who, under the applicable standards of professional conduct then
prevailing, would have a conflict of interest in representing the Company or
Indemnitee in an action to determine Indemnitee's rights under this Agreement.
The Company shall promptly pay the reasonable fees and expenses of the
Independent Counsel referred to above and shall fully indemnify such counsel
against any and all Expenses, claims, liabilities and damages arising out of or
relating to this Agreement or its engagement pursuant hereto.

                         (h)        "Proceeding" includes any threatened,
pending or completed action, suit, arbitration, alternate dispute resolution
mechanism, investigation, inquiry, administrative hearing or any other actual,
threatened or completed proceeding, whether brought by or in the right of the
Company or otherwise and whether civil, criminal, administrative or
investigative, in which Indemnitee was, is or will be involved as a party or
otherwise, by reason of the fact that Indemnitee is or was a director or
officer of the Company, by reason of any action taken by him or of any inaction
on his part while acting as director or officer of the Company, or by reason of
the fact that he is or was serving at the request of the Company as a director,
officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, in each case whether or not he is acting or serving
in any such capacity at the time any liability or expense is incurred for which
indemnification or advancement of expenses can be provided under this
Agreement; except one initiated by a Indemnitee pursuant to Section 10 to
enforce his rights under this Agreement.

                                      -9-

<PAGE>

                         (i)        References to "other  enterprise"  shall
include employee benefit plans; references to "fines" shall include any excise
tax assessed with respect to any employee benefit plan; references to "serving
at the request of the Company" shall include any service as a director,
officer, employee or agent of the Company that imposes duties on, or involves
services by, such director, officer, employee or agent with respect to an
employee benefit plan, as participants or beneficiaries; and a person who acted
in good faith and in the manner he reasonably believed to be in the interests
of the participants and beneficiaries of an employee benefit plan shall not be
deemed to have acted in manner "not opposed to the best interests of the
Company" as referred to in this Agreement.

                         (j)        "Affiliate"  means  with  respect  to any
person or entity, any other person or entity that, directly or indirectly,
through one or more intermediaries, controls, is controlled by or is under
common control with, such person or entity.

                  Section 18.       Enforcement.

                         (a)        The Company  expressly  confirms and agrees
that it has entered into this Agreement and assumed the obligations imposed on
it hereby in order to induce Indemnitee to continue to serve as a director
and/or officer of the Company, and to serve upon any committee of the Board of
Directors of the Company as requested by such Board, and the Company
acknowledges that Indemnitee is relying upon this Agreement in serving as a
director and/or officer of the Company and a member of any such committee.

                         (b)        This Agreement  constitutes the entire
agreement between the parties hereto with respect to the subject matter hereof
and supersedes all prior agreements and understandings, oral, written and
implied, between the parties hereto with respect to the subject matter hereof.

                  Section 19.       Modification and Waiver. No supplement,
modification or amendment of this Agreement shall be binding unless executed in
writing by both of the parties hereto. No waiver of any of the provisions of
this Agreement shall be deemed or shall constitute a waiver of any other
provisions hereof (whether or not similar) nor shall such waiver constitute a
continuing waiver.

                  Section 20.       Notice by Indemnitee. Indemnitee agrees
promptly to notify the Company in writing upon being served with any summons,
citation, subpoena, complaint, indictment, information or other document
relating to any Proceeding or matter that may be subject to indemnification or
advancement of Expenses covered hereunder. The failure of Indemnitee to so
notify the Company shall not relieve the Company of any obligation it may have
to the Indemnitee under this Agreement or otherwise, except to the extent the
Company is materially prejudiced by such failure.

                  Section 21.       Notices. All notices, requests, demands and
other communications hereunder shall be in writing and shall be deemed to have
been duly given if (i) delivered by hand and receipted for by the party to whom
the notice or other communication shall have been directed,

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<PAGE>

or (ii) mailed by certified or registered mail with postage prepaid, on the
third business day after the date on which it is so mailed:

                         (a)        If to Indemnitee, to:

                                    511 Melrose Avenue
                                    Toronto, Ontario
                                    M5M 2A1

                         (b)        If to the Company, to:

                                    InterTAN, Inc.
                                    279 Bayview Drive
                                    Barrie, Ontario L4M 4W5
                                    Canada

                                    Attention: Sr. Vice President, Secretary &
                                    General Counsel

or to such other address as may have been furnished to Indemnitee by the Company
or to the Company by Indemnitee, as the case may be.

                  Section 22.       Contribution. To the fullest extent
permissible under applicable law, if the indemnification provided for in this
Agreement is unavailable to Indemnitee for any reason whatsoever, the Company,
in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by
Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid
or to be paid in settlement and/or for Expenses, in connection with any claim
relating to an indemnifiable event under this Agreement, in such proportion as
is deemed fair and reasonable in light of all of the circumstances of such
Proceeding in order to reflect (i) the relative benefits received by the
Company and Indemnitee as a result of the event(s) and/or transaction(s) giving
cause to such Proceeding; and/or (ii) the relative fault of the Company (and
its directors, officers, employees and agents) and Indemnitee in connection
with such event(s) and/or transaction(s).

                  Section 23.       Governing Law; Submission to Jurisdiction;
Appointment of Agent for Service of Process. This Agreement and the legal
relations among the parties shall be governed by, and construed and enforced in
accordance with, the laws of the State of Delaware, without regard to its
conflict of laws rules. Except with respect to any arbitration commenced by
Indemnitee pursuant to Section 10(a), the Company and Indemnitee hereby
irrevocably and unconditionally (i) agree that any action or proceeding arising
out of or in connection with this Agreement shall be brought only in the
Chancery Court of the State of Delaware (the "Delaware Court"), and not in any
other state or federal court in the United States of America or any court in any
other country, (ii) consent to and submit to the exclusive jurisdiction of the
Delaware Court for

                                      -11-

<PAGE>

purposes of any action or proceeding arising out of or in
connection with this Agreement, (iii) appoint, to the extent such party is not a
resident of the State of Delaware, irrevocably CT Corporation, 1209 Orange
Street, Wilmington, Delaware 19801 as its agent in the State of Delaware as such
party's agent for acceptance of legal process in connection with any such action
or proceeding against such party with the same legal force and validity as if
served upon such party personally within the State of Delaware, (iv) waive any
objection to the laying of venue of any such action or proceeding in the
Delaware Court, and (v) waive, and agree not to plead or to make, any claim that
any such action or proceeding brought in the Delaware Court has been brought in
an improper or otherwise inconvenient forum.

         Section 24.   Miscellaneous. Use of the masculine pronoun shall be
deemed to include usage of the feminine pronoun where appropriate. All
references in this Agreement to Sections shall be deemed to be references to
Sections of this Agreement unless the context indicates otherwise.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

                          InterTAN, Inc.

                          By:     /s/ Jeffrey A. Losch
                            ----------------------------------------------
                                  Jeffrey  A. Losch
                                  Sr Vice President, Secretary & General Counsel

                                  /s/ James P. Maddox
                            ----------------------------------------------
                                  James P. Maddox

                                      -12-

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