Company: LBTYK
Filing Date: 2025-03-25
Form Type: 10-K/A
Source: 0001570585-25-000097
Chunk: 56

Company: Liberty Global Ltd.
Filing Date: 2025-03-25
Form: 10-K/A
Chunk 56
---
 24 May 2024, VMED O2 implemented a capital reduction to reduce the share premium reserve to nil and increase accumulated (deficit) earnings by £6,616.5 million. The capital reduction was effective from 28 May 2024.

(13) Share-based Compensation

Our share-based compensation expense relates to (i) charges for share-based incentive awards associated with common shares of Liberty Global and ordinary shares of Telefónica held by certain employees of our subsidiaries and (ii) charges for incentive awards associated with the performance of VMED O2, under VMED O2’s long-term incentive plan, held by certain employees of our subsidiaries.

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#### VMED O2 UK LIMITED

### Notes to Consolidated Financial Statements — (Continued)

#### 31 December 2024, 2023 and 2022
All the outstanding share-based incentive awards from Liberty Global and Telefónica vested during 2024. Share-based compensation expense allocated to our Company by Liberty Global and Telefónica is reflected as an increase to owners' equity, offset by any amounts recharged to us, and is included within SG&A expenses in our consolidated statements of operations.

All the outstanding incentive awards for VMED O2's long-term incentive plan will vest during 2025 and 2026. The associated expense is included within SG&A expenses in our consolidated statements of operations.

(14) Related-party Transactions

Our significant related-party agreements are set forth below.

#### Shareholders Agreement
In connection with the JV Transaction, on 1 June 2021, Liberty Global and Telefónica entered into a shareholders agreement (the Shareholders Agreement ). Each Shareholder holds 50% of the issued share capital of VMED O2. The Shareholders Agreement contains customary provisions for the governance of a 50:50 joint venture that result in Liberty Global and Telefónica having joint control over decision making with respect to the Joint Venture and each Shareholder has the right to initiate an initial public offering after the third anniversary of the closing.

The Shareholders Agreement also provides (i) for a dividend policy that requires VMED O2, subject to certain exceptions, to distribute all unrestricted cash to the Shareholders as soon as reasonably practicable following each quarterly period (subject to our Company maintaining a minimum amount of cash and complying with the terms of our financing arrangements) and (ii) that VMED O2 will be managed with a leverage ratio between 4.0 and 5