Document:

Exhibit

Exhibit 4.7

DESCRIPTION OF THE REGISTRANT’S SECURITIES 
REGISTERED PURSUANT TO SECTION 12 OF THE 
SECURITIES EXCHANGE ACT OF 1934

As of the end of the period covered by the most recent Annual Report on Form 10-K of GCI Liberty, Inc. (the “Registrant” or “GCI Liberty”), the Registrant has two classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): (1) Series A Common Stock, par value $0.01 per share (the “GCI Liberty Series A Common Stock”); and (2) Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share (the “GCI Liberty Preferred Stock”). 

Description of Registrant’s Capital Stock
 
The following description of the GCI Liberty Series A Common Stock and GCI Liberty Series A Preferred Stock is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to the Registrant’s Restated Certificate of Incorporation (the “Restated Certificate”) and the Registrant’s Amended and Restated Bylaws (the “Bylaws”), which are exhibits to this Annual Report on Form 10-K and are incorporated by reference herein. We encourage you to read the Restated Certificate, Bylaws and the applicable provisions of the Delaware General Corporation Law for additional information. 
 
Authorized Capital Stock  
 
GCI Liberty is authorized to issue 1,610,000,000 shares of capital stock consisting of (i) 500,000,000 shares of GCI Liberty Series A Common Stock, (ii) 20,000,000 shares of GCI Liberty Series B Common Stock, par value $0.01 per share (the “GCI Liberty Series B Common Stock”), (iii) 1,040,000,000 shares of GCI Liberty Series C Common Stock, par value $0.01 per share (the “GCI Liberty Series C Common Stock” and, together with the GCI Liberty Series A Common Stock and GCI Liberty Series B Common Stock, the “GCI Liberty Common Stock,” and the GCI Liberty Common Stock, together with the GCI Liberty Preferred Stock, the “GCI Liberty Capital Stock”), and (iv) 50,000,000 shares of preferred stock, of which (A) 7,500,000 shares are designated GCI Liberty Preferred Stock and (B) 42,500,000 shares are undesignated as to series.
 
The Registrant’s Common Stock
 
Voting Rights
 
Holders of shares of GCI Liberty Series A Common Stock are entitled to one vote for each share of such stock held and holders of shares of GCI Liberty Series B Common Stock are entitled to ten votes for each share of such stock held on all matters submitted to a vote of stockholders. Holders of shares of GCI Liberty Series C Common Stock are not entitled to any voting powers, except as otherwise required by Delaware law. When so required, holders of shares of GCI Liberty Series C Common Stock will be entitled to 1/100th of a vote for each share of such stock held.
 
Holders of shares of GCI Liberty Preferred Stock are entitled to one-third of a vote per share for each share of such stock held, subject to adjustment in accordance with the Restated Certificate.
 
Except as otherwise required by Delaware law, the Restated Certificate or the terms of any series of preferred stock, the holders of shares of GCI Liberty Series A Common Stock, GCI Liberty Series B Common Stock, and each series of preferred stock that is designated as a voting security (which includes the GCI Liberty Preferred Stock) will vote as one class with respect to the election of directors and with respect to all other matters to be voted on by the stockholders, and no separate class or series vote or consent of the holders of shares of any class or series of capital stock will be required for the approval of any such matter.

                

Conversion Rights
 
Each share of GCI Liberty Series B Common Stock is convertible, at the option of the holder, into one share of GCI Liberty Series A Common Stock. GCI Liberty Series A Common Stock, GCI Liberty Series C Common Stock and GCI Liberty Preferred Stock are not convertible at the option of the holder.
 
Dividends and Share Distributions
 
Whenever a dividend, other than a dividend that constitutes a Share Distribution (as defined below), is paid to the holders of shares of GCI Liberty Series A Common Stock, GCI Liberty Series B Common Stock or GCI Liberty Series C Common Stock then outstanding, GCI Liberty is required to also pay to the holders of shares of each other series of common stock of GCI Liberty then outstanding an equal dividend per share.
 
If at any time a Share Distribution is to be made with respect to GCI Liberty Series A Common Stock, GCI Liberty Series B Common Stock, or GCI Liberty Series C Common Stock, such Share Distribution may be declared and paid only as follows:
 
·                  a Share Distribution (i) consisting of shares of GCI Liberty Series C Common Stock (or Series C convertible securities) may be declared and paid to holders of shares of GCI Liberty Series A Common Stock, GCI Liberty Series B Common Stock, and GCI Liberty Series C Common Stock, on an equal per share basis, or (ii) consisting of (A) shares of GCI Liberty Series A Common Stock (or Series A convertible securities) may be declared and paid to holders of shares of GCI Liberty Series A Common Stock, on an equal per share basis, (B) shares of GCI Liberty Series B Common Stock (or Series B convertible securities) may be declared and paid to holders of shares of GCI Liberty Series B Common Stock, on an equal per share basis, and (C) shares of GCI Liberty Series C Common Stock (or Series C convertible securities) may be declared and paid to holders of shares of GCI Liberty Series C Common Stock, on an equal per share basis; or
 
·                  a Share Distribution consisting of any class or series of securities of GCI Liberty or any other person, other than GCI Liberty Series A Common Stock, GCI Liberty Series B Common Stock or GCI Liberty Series C Common Stock (or applicable convertible securities), may be declared and paid on the basis of a distribution of (i) identical securities, on an equal per share basis, to holders of shares of GCI Liberty Series A Common Stock, GCI Liberty Series B Common Stock, and GCI Liberty Series C Common Stock, (ii) separate classes or series of securities, on an equal per share basis, to the holders of shares of each such series of GCI Liberty Common Stock or (iii) a separate class or series of securities to the holders of shares of one or more classes of GCI Liberty Common Stock and, on an equal per share basis, a different class or series of securities to the holders of shares of all other classes of GCI Liberty Common Stock, subject to certain limitations retaining the relative voting power of the GCI Liberty Series B Common Stock as set forth in the Restated Certificate.
 
For purposes of the Restated Certificate, a “Share Distribution” means a dividend or distribution (including a distribution made in connection with any stock-split, reclassification, recapitalization, dissolution, winding up or full or partial liquidation of GCI Liberty) payable in shares of any class or series of capital stock, convertible securities or other securities of GCI Liberty or any other person.
 
All decisions regarding the payment of dividends and share distributions on the shares of GCI Liberty Common Stock by GCI Liberty will be made by the board of directors of GCI Liberty (the “Board”), from time to time, in accordance with applicable law after taking into account various factors, including financial condition, operating results, current and anticipated cash needs, plans for expansion and possible loan covenants which may restrict or prohibit payment of dividends.
 
Reclassification
 
GCI Liberty may not reclassify, subdivide, or combine the GCI Liberty Series A Common Stock, GCI Liberty Series B Common Stock or GCI Liberty Series C Common Stock then outstanding without reclassifying, subdividing or combining each other such series of GCI Liberty Common Stock then outstanding, on an equal per share basis.

                

Liquidation and Dissolution
 
In the event of a liquidation, dissolution or winding up of GCI Liberty, whether voluntary or involuntary, after payment or provision for payment of the debts and liabilities of GCI Liberty and subject to the payment in full of the preferential or other amounts to which any series of preferred stock are entitled, the holders of shares of GCI Liberty Series A Common Stock, GCI Liberty Series B Common Stock, and GCI Liberty Series C Common Stock will share equally, on a share for share basis, in the assets of GCI Liberty remaining for distribution to the holders of shares of GCI Liberty Series A Common Stock, GCI Liberty Series B Common Stock, and GCI Liberty Series C Common Stock.
 
Preemptive Rights
 
The holders of shares of GCI Liberty Series A Common Stock, GCI Liberty Series B Common Stock, and GCI Liberty Series C Common Stock will not have any preemptive rights to subscribe for or purchase any capital stock or other securities which may be issued by GCI Liberty.
  
Blank Check Preferred Stock
 
The Board is authorized to establish one or more series of preferred stock and to determine, with respect to any series of preferred stock, the terms and rights of the series, including:
 
·                  the designation of the series;
 
·                  the number of authorized shares of the series, which number the Board may subsequently increase or decrease, but not below the number of such shares of such series then outstanding;
 
·                  the dividend rate or amounts, if any, payable on the shares and, in the case of cumulative dividends, the date or dates from which dividends on all shares of the series will be cumulative, and the relative preferences or rights of priority or participation with respect to such dividends;
 
·                  the rights of the series in the event of voluntary or involuntary liquidation, dissolution or winding up and the relative preferences or rights of priority of payment;
 
·                  the rights, if any, of holders of the series to convert into or exchange for other classes or series of stock or indebtedness and the terms and conditions of any such conversion or exchange, including provision for adjustments within the discretion of the Board;
 
·                  the voting rights, if any, of the holders of the series, including whether such series will be a voting security and, if so designated, the terms and conditions on which the holders of such series may vote together with the holders of any other class or series of capital stock;
 
·                  the terms and conditions, if any, for GCI Liberty to purchase or redeem the shares of the series; and
 
·                  any other relative rights, powers, preferences and limitations of the series.
 
GCI Liberty Preferred Stock
 
Voting Rights
 
The shares of GCI Liberty Preferred Stock are designated as a voting security for purposes of the Restated Certificate.
 
Each record holder of shares of GCI Liberty Preferred Stock is entitled to one-third a vote per share held by such holder, subject to adjustment (to the nearest tenth of a vote per share) in accordance with the Restated Certificate in the event of any stock split, stock dividend or other distribution, reclassification, recapitalization or similar event affecting the GCI Liberty Common Stock and the aggregate number of votes that may be cast by the holders of shares of the GCI Liberty Series A Common Stock and GCI Liberty Series B Common Stock, voting together as a separate class or series, such that the voting power of the GCI Liberty Preferred Stock immediately following the adjustment event is substantially equivalent to the voting power of the GCI Liberty Preferred Stock immediately prior to the adjustment event.

                

 
The holders of shares of GCI Liberty Preferred Stock are entitled to vote together as a class generally with the holders of shares of the GCI Liberty Series A Common Stock and GCI Liberty Series B Common Stock on all matters submitted to a vote of the holders of the GCI Liberty Series A Common Stock and GCI Liberty Series B Common Stock (together with the holders of shares of any class or series of Senior Stock, Parity Stock or Junior Stock (as each such term is defined in the Restated Certificate) then entitled to vote together as a class with the holders of shares of the GCI Liberty Series A Common Stock and GCI Liberty Series B Common Stock), except as required by the Restated Certificate or by applicable law.
 
Dividends
 
The holders of shares of GCI Liberty Preferred Stock are entitled to receive, when and as declared by the Board, out of legally available funds, preferential dividends that accrue and cumulate as provided in the Restated Certificate.
 
Dividends on each share of GCI Liberty Preferred Stock accrue on a daily basis at a rate of 7.00% per annum of the liquidation price.
 
Accrued dividends are payable quarterly on each dividend payment date, which is January 15, April 15, July 15, and October 15 of each year, and commenced on the first such date following the issuance of the GCI Liberty Preferred Stock in the automatic conversion of the common stock of GCI Liberty’s predecessor, which was effected on March 8, 2018 (the “Mandatory Conversion Time”).
 
If GCI Liberty fails to pay cash dividends on the GCI Liberty Preferred Stock in full for any four consecutive or non-consecutive dividend periods then the dividend rate shall increase by 2.00% per annum of the liquidation price until cured.
 
If at any time or from time to time the GCI Liberty Preferred Stock fails to be publicly traded for 90 consecutive days or longer, then the dividend rate shall increase by 2.00% per annum of the liquidation price until cured.
 
To the extent the dividend amount due to the holders of GCI Liberty Preferred Stock is not paid in full on a dividend payment date for any reason, all dividends (whether or not declared) that have accrued on a share of GCI Liberty Preferred Stock during the dividend period ending on such dividend payment date and which are unpaid will be added to the liquidation price of such share and remain until paid.
 
Subject to certain exceptions, so long as any shares of GCI Liberty Preferred Stock shall be outstanding, GCI Liberty may not declare or pay any dividend or make any distribution whatsoever with respect to, or purchase, redeem, or otherwise acquire, any Junior Stock or any Parity Stock, unless and until (i) all dividends to which the holders of shares of GCI Liberty Preferred Stock are entitled for all current and all previous dividend periods have been paid (or appropriately set aside), and (ii) GCI Liberty shall have paid in full (or appropriately set aside) all redemption payments with respect to the GCI Liberty Preferred Stock that GCI Liberty is then obligated to pay.

Distributions Upon Liquidation, Dissolution or Winding Up
 
Subject to the prior payment in full of the preferential amounts to which any Senior Stock is entitled, in the event of any liquidation, dissolution or winding up of GCI Liberty, whether voluntary or involuntary, the holders of shares of the GCI Liberty Preferred Stock are entitled to receive, before any payment or distribution shall be made to the holders of shares of any Junior Stock, an amount in property or cash, as determined by the Board in good faith, or a combination thereof, per share, equal to the liquidation price plus all unpaid dividends (whether or not declared) accrued through the date of distribution of amounts payable to holders of shares of GCI Liberty Preferred Stock in connection with such liquidation, dissolution or winding up of GCI Liberty since the immediately preceding dividend payment date, which payment shall be made pari passu with any such payment made to the holders of shares of any Parity Stock.
 
The liquidation price of each share of GCI Liberty Preferred Stock is the sum of (i) $25, plus (ii) an amount equal to all unpaid dividends (whether or not declared) accrued with respect to such share which pursuant to the terms of the Restated Certificate has been added to and then remain part of the liquidation price as of such date.
 
The shares of GCI Liberty Preferred Stock are not participating.
 

                

Mandatory Redemption
 
GCI Liberty is required to redeem all outstanding shares of GCI Liberty Preferred Stock out of funds legally available, at the liquidation price plus all unpaid dividends (whether or not declared) accrued from the most recent dividend payment date through the redemption date, on the first business day following the twenty-first anniversary of the Mandatory Conversion Time.
 
The Restated Certificate provides certain mechanisms for partial redemption and places certain restrictions on GCI Liberty in the event GCI Liberty does not have funds legally available to satisfy its redemption obligations.
 
The Restated Certificate does not provide for optional redemption of shares of GCI Liberty Preferred Stock prior to the redemption date.
 
Protective Provisions
 
In addition to any vote required by the Restated Certificate or applicable law, for so long as any of the shares of GCI Liberty Preferred Stock remain outstanding, GCI Liberty may not take the following actions without the written consent or affirmative vote of the holders of at least a majority of the then outstanding shares of GCI Liberty Preferred Stock, consenting or voting separately as a series:
 
·                  amend, alter or repeal the terms of the GCI Liberty Preferred Stock, whether by merger, share exchange, consolidation or otherwise, in a manner that adversely affects the powers, preferences or rights of the GCI Liberty Preferred Stock, unless each share of GCI Liberty Preferred Stock (i) will remain outstanding without material and adverse change to the powers or rights of the GCI Liberty Preferred Stock or (ii) will be converted or exchanged for preferred stock of the surviving entity having powers, preferences and rights substantially identical to that of a share of GCI Liberty Preferred Stock (with limited exceptions); or
 
·                  authorize, create or issue, or increase the authorized or issued amount of, any class of Senior Stock or reclassify any of the authorized capital stock of GCI Liberty into such shares of Senior Stock, or create, authorize or issue any obligation or security convertible into or evidencing the right to purchase any shares of Senior Stock.
 
In any merger or consolidation that provides for the payment of only cash to the holders of shares of GCI Liberty Preferred Stock, each holder of shares of GCI Liberty Preferred Stock is entitled to receive an amount equal to the liquidation price of the shares of GCI Liberty Preferred Stock held by such holder, plus an amount equal to the accrued and unpaid dividends (whether or not declared) on such shares since the immediately preceding dividend payment date.
 
Preemptive Rights
 
The holders of shares of GCI Liberty Preferred Stock do not have any preemptive right to subscribe for or purchase any capital stock or other securities which may be issued by GCI Liberty.
 
Waiver
 
Any provision of the Restated Certificate and any right of the holders of shares of GCI Liberty Preferred Stock may be waived as to all shares of GCI Liberty Preferred Stock (and the holders thereof) upon the written consent of the Board (or any authorized committee thereof) and the holders of a majority of the shares of GCI Liberty Preferred Stock then outstanding.
 
Stockholder Action by Written Consent
 
The Restated Certificate prohibits stockholder action by written consent, except that the holders of shares of any series of preferred stock may take action by written consent to the extent provided by its terms.
  
Board of Directors
 
The Board is classified and divided into three classes, with each class consisting, as nearly as possible, of a number of directors equal to one-third of the number of members of the Board.  As of December 31, 2019, the terms of the Class I, II 

                

and III directors who were then in office will expire at the annual meeting of stockholders to be held in 2022, 2020 and 2021, respectively.

At each annual meeting of stockholders, the successors of that class of directors whose term expires at that meeting will be elected to hold office for a term expiring at the annual meeting of stockholders to be held in the third year following the year of their election. The directors of each class will hold office until their respective successors are elected and qualified or until such director’s earlier death, resignation or removal.
 
Subject to the rights of any preferred stock, directors may be removed from office only for cause upon the affirmative vote of the holders of at least a majority of the total voting power of the then outstanding shares of GCI Liberty Capital Stock entitled to vote thereon, voting together as a single class.
 
Limitation on Liability and Indemnification
 
To the fullest extent permitted by Delaware law, the directors are not liable to GCI Liberty or any of its stockholders for monetary damages for breaches of fiduciary duties as a director.  In addition, GCI Liberty indemnifies, to the fullest extent permitted by applicable law, any person involved in any suit or action by reason of the fact that such person is a director or officer of GCI Liberty or, at GCI Liberty’s request, a director, officer, employee or agent of another corporation or entity, against all liability, loss and expenses incurred by such person.  GCI Liberty will pay expenses of a director or officer in defending any proceeding in advance of its final disposition, provided that such payment is made upon receipt of an undertaking by the director or officer to repay all amounts advanced if it should be ultimately determined that the director or officer is not entitled to indemnification.
 
Special Meetings of Stockholders
 
Subject to the rights of any preferred stock and except as otherwise provided by law, special meetings of stockholders will only be called by the Secretary (i) upon the written request of the holders of not less than 66 2/3%  of the total voting power of the then outstanding voting securities entitled to vote thereon, or (ii) at the request of at least 75% of the member of the Board then in office.
 
Advance Notice Provisions
 
The Bylaws establish an advance notice procedure for stockholders to make nominations of candidates for election as directors or to bring other business before a meeting of stockholders.
 
All nominations by stockholders or other business to be properly brought before a meeting of stockholders will be made pursuant to timely notice in proper written form to the Secretary. To be timely, a stockholder’s notice will be given to the Secretary at GCI Liberty’s principal executive offices as follows:
 
·                  with respect to an annual meeting of stockholders to be held on a day which is not more than 30 days in advance of the anniversary of the previous year’s annual meeting of stockholders or not later than 30 days after the anniversary of the previous year’s annual meeting of stockholders, such notice must be given not later than the close of business on the 60th day, nor earlier than the close of business on the 90th day, in advance of the anniversary of the previous year’s annual meeting of stockholders;
 
·                  with respect to any other annual meeting of stockholders, such notice must be given not later than the close of business on the tenth day following the date of public disclosure of the date of such meeting; and
 
·                  with respect to a special meeting of stockholders for the purpose of electing one or more directors, such notice must be given not earlier than the close of business on the 90th day prior to such special meeting and not after the later of the close of business on the 60th day prior to such special meeting or the tenth day following the date of public disclosure of the date of the special meeting and of the nominees proposed by the Board to be elected at such meeting.
 
The public announcement of an adjournment or postponement of a meeting of stockholders does not commence a new time period (or extend any time period) for the giving of any such stockholder notice.
 

                

Amendments to the Restated Certificate
 
With limited exception, the Restated Certificate requires the affirmative vote of the holders of at least 66 2/3% of the total voting power of the then outstanding shares of GCI Liberty Capital Stock entitled to vote, voting together as a single class, in order for GCI Liberty to amend, alter, or repeal any provision of the Restated Certificate (in addition to the statutorily required stockholder approval), unless at least 75% of the members of the Board then in office have approved such action.
 
With certain limited exceptions, the holders of GCI Liberty Preferred Stock are entitled to consent rights over certain amendments to the Restated Certificate that would have an adverse effect on the powers, preferences or rights of the GCI Liberty Preferred Stock.
 
Bylaw Amendments
 
The Board is authorized and empowered to adopt, alter, amend or repeal any provision of the Bylaws by the affirmative vote of not less than 75% of the members of the Board then in office.
 
Supermajority Voting Provisions
 
In addition to the supermajority voting provisions discussed under “Amendments to the Restated Certificate” above, the Restated Certificate provides that, with limited exception, in addition to any other required approval under Delaware law or the Restated Certificate, approval of the holders of at least 66 2/3% of the total voting power of the then outstanding shares of GCI Liberty Capital Stock entitled to vote is required in order for GCI Liberty to take any action to authorize:
 
·                  the adoption, amendment, or repeal of any provision of the Bylaws by the stockholders (other than the adoption, amendment or repeal of any provision of the Bylaws by the Board in accordance with the power conferred upon it as described under “Bylaw Amendments” above);
 
·                  the merger or consolidation of GCI Liberty with or into any other corporation (including a merger consummated pursuant to Section 251(h) of the General Corporation Law of the State of Delaware (the “DGCL”) and notwithstanding the exception to a vote of the stockholders for such a merger set forth therein); provided, that the foregoing voting provision will not apply to any such merger or consolidation (1) as to which the laws of the State of Delaware, as then in effect, do not require the vote of GCI Liberty’s stockholders (other than Section 251(h) of the DGCL), or (2) that at least 75% of the members of the Board then in office have approved;
 
·                  the sale, lease or exchange of all, or substantially all, of the property or assets of GCI Liberty, provided, that the foregoing voting provisions will not apply to any such sale, lease or exchange that at least 75% of the members of the Board then in office have approved; or
 
·                  the dissolution of GCI Liberty, provided, that the foregoing voting provision will not apply to any such dissolution if at least 75% of the members of the Board then in office have approved such dissolution.
 
Corporate Opportunity
 
The Restated Certificate acknowledges that the Registrant may have overlapping directors and officers with other entities that compete with its businesses and that the Registrant may engage in material business transactions with such entities. The Registrant has renounced its rights to certain business opportunities and the Restated Certificate provides that no director or officer of the Registrant will breach their fiduciary duty and therefore be liable to the Registrant or its stockholders by reason of the fact that any such individual directs a corporate opportunity to another person or entity (including Qurate Retail, Inc., Liberty Media Corporation, Liberty Broadband Corporation, or Liberty TripAdvisor Holdings, Inc.) instead of the Registrant, or does not refer or communicate information regarding such corporate opportunity to the Registrant, unless (x) such opportunity was expressly offered to such person solely in his or her capacity as a director or officer of the Registrant or as a director or officer of any of the Registrant’s subsidiaries and (y) such opportunity relates to a line of business in which the Registrant or any of its subsidiaries is then directly engaged.
 

                

Section 203 of the General Corporation Law of the State of Delaware
 
Section 203 of the DGCL prohibits certain transactions between a Delaware corporation and an “interested stockholder.”  An “interested stockholder” for this purpose generally is a stockholder who is directly or indirectly a beneficial owner of 15% or more of the outstanding voting power of a Delaware corporation.  This provision prohibits certain business combinations between an interested stockholder (including certain related persons) and the corporation for a period of three years after the date on which the stockholder became an interested stockholder, unless: (1) prior to the time that the stockholder became an interested stockholder, either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder is approved by the corporation’s board of directors, (2) the interested stockholder acquired at least 85% of the then outstanding voting power of the corporation in the transaction in which the stockholder became an interested stockholder (excluding shares held by certain holders for purposes of determining the voting stock outstanding), or (3) the business combination is approved by a majority of the board of directors and the affirmative vote (but not written consent) of the holders of at least 66 2/3% of the outstanding voting power of the shares not owned by the interested stockholder, at or subsequent to the time that the stockholder became an interested stockholder.  GCI Liberty is subject to Section 203 of the DGCL.
 
Cumulative Voting
 
The Restated Certificate does not permit for cumulative voting for the GCI Liberty Common Stock. The Restated Certificate authorizes the Board to issue preferred stock with such voting rights as the Board may specify.Exhibit

Exhibit 10.25

FORM OF FIRST AMENDMENT TO SERVICES AGREEMENT
This First Amendment to Services Agreement (this “Amendment”), effective as of December 13, 2019, is between Liberty Media Corporation, a Delaware corporation (the “Provider”), and [____], a Delaware corporation (“[____]” or “[____]”).
RECITALS
WHEREAS, the Provider and [____] previously entered into that certain Services Agreement, dated as of [____] (the “Original Agreement”); and 
WHEREAS, in connection with the execution and delivery by the Provider and Gregory B. Maffei (“Executive”) of that certain Executive Employment Agreement dated as of the date hereof (the “Executive Employment Agreement”), the Provider and [____] desire to amend the Original Agreement on the terms and conditions set forth herein. 
AGREEMENT
NOW THEREFORE, in consideration of the foregoing recitals, the mutual agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be bound legally, agree as follows: 
		
	1.
	Defined Terms. All initially capitalized terms used but not defined herein shall have the respective meanings assigned to such terms in the Original Agreement. 

(a)    The term “[____]” as used in the Original Agreement and this Amendment (and the term “[____]” as used in this Amendment) shall each refer to [____], a Delaware corporation.
(b)    References to “the Agreement” shall be deemed to be references to the Original Agreement, as amended by this Amendment and as it may be further amended from time to time in accordance with the terms thereof and hereof.
		
	2.
	Amendment to Section 2.2. Section 2.2 of the Original Agreement is amended to read in its entirety as follows: 

“Section 2.2    Cost Reimbursement.  In addition to (and without duplication of) the [Allocated Expenses] [Services Fee] payable pursuant to Section 2.1 and Executive Allocated Expenses pursuant to Section 2.5, [____] also will reimburse the Provider for all direct out-of-pocket costs, with no markup (“Out-of-Pocket Costs”), incurred by the Provider in performing the Services (e.g., postage and courier charges, [software license fees attributable to desktop or laptop computers utilized by Employees,] travel, meals and entertainment expenses, and other miscellaneous expenses that are incurred by the Provider or the [Employees] [Personnel] in the conduct of the Services).”
		
	3.
	Amendment to [Section 2.4] [Article II]. [Section 2.4] [Article II] of the Original Agreement is amended to [read in its entirety] [insert new Section 2.4 and Section 2.5] as follows: 

“[Section 2.4.  Survival.] The terms and conditions of this Article II will survive the expiration or earlier termination of this Agreement with respect to such amounts as are payable in respect of the period of time prior to the effective date of such expiration or termination.”
		
	4.
	[Amendment to Article II. Article II of the Original Agreement is amended to insert new Section 2.5 as follows:]

“Section 2.5.  Executive Compensation Expenses.     Notwithstanding anything in this Agreement to the contrary, this Section 2.5 shall apply with respect to the Executive Allocated Expenses and Direct Compensation (each as defined below).  
(a)Executive Allocated Expenses. [____] shall be allocated a portion of the Executive Allocated Expenses equal to its Executive Percentage (as defined below).  The “Executive Allocated Expenses” mean Executive’s aggregate salary, commitment bonus (as described in Section 4.2 of the Executive Employment Agreement), health, retirement and other compensation, benefits, perquisites, any legal fees and other expense reimbursements owed to Executive pursuant to Section 9.6 of the Executive Employment Agreement, any Special Reimbursement payments owed to Executive by the Provider (as defined and described in Section 9.7 of the Executive Employment Agreement) and other expenses paid by Provider in connection with the employment of Executive and all Severance Payments (as defined below) paid by Provider; provided, however, that the Executive Allocated Expenses will not include (1) any annual cash bonus amounts with respect to services performed for the benefit of the Provider (excluding, for the avoidance of doubt, the commitment bonus described in Section 4.2 of the Executive Employment Agreement) and any equity-based compensation, in each case, paid to such [Employee] [Personnel] by the Provider, (2) all Direct Compensation and any Prorated Executive Bonus Payment (as defined below), and (3) Out-of-Pocket Costs.  The Executive Allocated Expenses will be more fully set forth in, and determined from time to time in the manner set forth in, Schedule 2.5 attached hereto, as such Schedule may be periodically amended and revised by the parties as set forth in this Section 2.5.
(b)Payment of Direct Compensation.  In accordance with the Executive Employment Agreement, [____] agrees to (i) pay Executive [____]’s allocation of the annual cash bonus amounts with respect to services performed for the benefit of [____] in accordance with Section 4.3 of the Executive Employment Agreement with such allocation being equal to the Executive Percentage, (ii) grant Executive options to purchase shares of Series [__] Common Stock of [____] (“[____] Common Stock”) in accordance with Section 4.10 of the Executive Employment Agreement (the “Service Company Term Awards”) and (iii) grant Executive an annual award with respect to [____] Common Stock in accordance with Section 4.11 of the Executive Employment Agreement (the “Annual Executive Incentive Awards” and, together with the Service Company Term Awards, the “Equity Awards”).  The compensation described in the preceding sentence is referred to herein as the “Direct Compensation.” [____] will be solely responsible for all liabilities associated with the Direct Compensation, including with respect to satisfaction of the obligations with respect to Annual Executive Incentive Awards on any termination of Executive’s services with the Provider or [____]. The Direct Compensation will be more fully set forth in, and determined from time to time in the manner set forth in, Schedule 2.5 attached hereto, as such Schedule may be periodically amended and revised by the parties as set forth in this Section 2.5.
(c)Payment of Executive Severance.  

2    

(i)The Executive Allocated Expenses shall include all cash severance payments and benefit continuation obligations owed to Executive by the Provider pursuant to Section 5 of the Executive Employment Agreement (“Severance Payments”). Furthermore, [____] may, in lieu of reimbursing Provider the Executive Percentage of any Severance Payments and in accordance with Section 5 of the Executive Employment Agreement, directly deliver shares of [____] Common Stock to Executive in satisfaction of a portion of its Executive Percentage of the Severance Payments (a “Share-Based Severance Payment”), provided, that, in the event [____] is unable or otherwise fails to deliver any Share-Based Severance Payment in [____] Common Stock, [____] shall deliver cash to Provider in an amount equal to the value of Share-Based Severance Payment otherwise required to be delivered to Executive by [____].
(ii)Following an Executive Service Termination (as defined below) under circumstances qualifying Executive for payment of a prorated annual bonus pursuant to Section 5.7 of the Executive Employment Agreement (the “Prorated Executive Bonus Payment”), [____] shall pay Executive the Prorated Executive Bonus Payment at the time such payment is due under the Executive Employment Agreement; provided, that, in the event [____] fails to pay the Prorated Executive Bonus Payment, it shall reimburse the Provider amounts paid by Provider in respect thereof.
(iii)The amounts set forth in this Section 2.5(c) shall be paid by [____] in addition to any Executive Termination Payment payable to Provider under Section 3.4 of this Agreement.
(iv)In the event of any termination of employment or Services of Executive, this Section 2.5 shall apply to any severance or other payments to be made by or allocated to [____][ in lieu of, and notwithstanding, Section 4.3 of this Agreement].  
(d)Executive Percentage.  The “Executive Percentage” for the period commencing January 1, 2020 through December 31, 2020 is set forth in Schedule 2.5 and thereafter the Executive Percentage and the Executive Allocated Expenses will be determined annually by the Provider, in consultation with [____] and the Executive, prior to each December 15th of the Term, pursuant to paragraph (e) below.  
(e)Determination of Amounts and Allocations.  Unless otherwise agreed between the Provider and [____], in consultation with Executive, the Executive Percentage will be determined consistent with the methodology described on Schedule 2.5. In addition, following any Significant Corporate Transaction, the Provider and [____], in consultation with Executive, will negotiate in good faith any appropriate adjustments to the Executive Percentage, Executive Allocated Expenses and Direct Compensation. In no event will any such adjustments apply retroactively (without the prior written consent of Provider and [____] in consultation with the Executive and, with respect to any retroactive adjustments to Direct Compensation previously paid or awarded to Executive, without the prior written consent of Executive).
(i)The parties acknowledge and agree that the methodology described on Schedule 2.5 reflects a good faith estimate of the amount of time that the Provider estimates Executive will spend providing Services to [____] during the upcoming fiscal year and that the parties in making any good faith adjustments to the Executive Percentage may take into 

3    

account such other factors as they deem relevant, including (for the avoidance of doubt) those described in clause (ii) below.  
(ii)In the event of (1) a termination by Executive or any other company to whom Executive is providing service at the direction of Provider (each, an “Other Service Company”) of Executive’s services to such Other Service Company, (2) a Change in Control (as such term is defined in the Executive Employment Agreement) of any Other Service Company, (3) a Fundamental Corporate Event (as defined in the Executive Employment Agreement) with respect to the Provider or any Other Service Company, or (4) any other material change in circumstances with respect to the Provider or any Other Service Company following the last agreed adjustment to the Executive Percentage, Executive Allocated Expenses or Direct Compensation that, in each case, results in a change in the allocable percentage of time spent by Executive providing Services to [____], in the Executive Allocated Expenses or in the Direct Compensation (any such event in clause (1) through (4) inclusive, a “Significant Corporate Transaction”), the Provider and [____] shall promptly, and in good faith, renegotiate the Executive Percentage, Executive Allocated Expenses and Direct Compensation, in consultation with Executive, based on, among other things deemed relevant by the parties, the anticipated Services to be provided by Executive to [____] during any upcoming fiscal period and the amount of time that the Provider estimates Executive will spend providing Services to [____] during such time. 
(iii)In the event of a dispute between the Provider and [____] as to the determination of the amount of the Executive Percentage, Executive Allocated Expenses or Direct Compensation, each of the Provider and [____] agrees to attempt, in good faith and in consultation with the Executive, to resolve the dispute as set forth in Section 7.16 of this Agreement.
(iv)It is intended that the payments by [____] to the Provider under this Agreement in respect of Executive Allocated Expenses and any Termination Payment, when combined with the payment of the Direct Compensation and any Prorated Executive Bonus Payment by [____] directly to Executive, are comparable to those which [____] would pay to a third party on an arm’s length basis for the same services.
(f)Provider as Payor.  Notwithstanding Section 4.2 of this Agreement, the parties acknowledge and agree that the Provider, and not [____], will be solely responsible for the payment of salaries, wages, benefits (including health insurance, retirement, and other similar benefits, if any), perquisites and other compensation applicable to Executive; provided, however, that [____] is responsible for the reimbursement to Provider of the Executive Percentage of the Executive Allocated Expenses and payment of the Direct Compensation and any Prorated Executive Bonus Payment directly to Executive each as provided in this Section 2.5. The parties acknowledge that Executive will provide services directly to [____] in consideration for the receipt of the Direct Compensation and any Prorated Executive Bonus Payment. [Except as otherwise required by the terms of the Tax Sharing Agreement,] the Provider will be responsible for the payment of all federal, state, and local withholding taxes on the compensation of Executive (other than Direct Compensation and any Prorated Executive Bonus Payment) and other such employment related taxes as are required by law, and [____] will be responsible for the payment of all federal, state, and local withholding taxes on the Direct Compensation and any Prorated Executive Bonus Payment 

4    

paid to Executive by [____] and other such employment related taxes as are required by law.  Each of [____] and the Provider will cooperate with the other to facilitate the other’s compliance with applicable federal, state, and local laws, rules, regulations, and ordinances applicable to the employment of Executive by either party.
(g)Monthly Payment.  [____] will pay the Provider, by wire or intrabank transfer of funds or in such other manner specified by the Provider to [____], in arrears on or before the last day of each calendar month beginning with January 2020, its allocated portion of the Executive Allocated Expenses then in effect, in monthly installments. 
(h)No Duplication.  For the avoidance of doubt, no Executive Allocated Expenses, Direct Compensation, Prorated Executive Bonus Payments or Executive Termination Payment (as defined below) will be included in the [Allocated Expenses or in the severance payments under Section 4.2 allocated to [____] pursuant to this Agreement][Services Fee].”
		
	5.
	Amendment to Section 3.3. Section 3.3 of the Original Agreement is amended to insert the following as the last paragraph: 

“An Executive Termination Payment may be due in connection with the termination of this Agreement pursuant to this Section 3.3 as described in and subject to the limitations of Section 3.4(c).”
		
	6.
	Amendment to Article III. Article III of the Original Agreement is amended to insert new Section 3.4 as follows: 

“Section 3.4.  Termination of Executive Services.  This Section 3.4 shall apply with respect to the termination of any Services provided by Executive in lieu of and notwithstanding Section 3.2 of this Agreement:
(a)Termination of Executive Services by [____].  At any time during the Term, [____] may elect to discontinue obtaining any of the Services from Executive (including removing Executive from his position as [Executive Chairman] [President and CEO] at [____]) by providing written notice to the Provider and the Executive (an “Executive Service Termination”).  Such Executive Service Termination shall be effective (i) in the case of termination for Cause (as defined in the Executive Employment Agreement with reference to [____]), on the date written notice is provided by [____] to the Provider and the Executive and (ii) in the case of termination for any reason other than termination for Cause on the later of (x) the 30th day following the delivery of such notices (or such later date as may be specified in the notices) and (y) the payment by [____] to the Provider of the Executive Termination Payment.  
(b)Termination of Executive Services by Provider. At any time during the Term, the Provider may elect to discontinue providing [____] any of the Services by Executive by providing written notice to [____] and the Executive, including, in connection with a termination by Executive of his employment with the Provider or of any services provided to [____] under his Executive Employment Agreement.  Such termination shall be effective on the date specified in the notices.  
(c)Termination Requiring Payment of Executive Termination Payment.

5    

(i)An Executive Service Termination for any reason other than termination for Cause (as defined in the Executive Employment Agreement with reference to [____]) will result in an obligation by [____] to pay the Provider the Executive Termination Payment no later than the effective date of such Executive Service Termination.
(ii)A termination (x) by the Provider of the Services provided to [____] by Executive following or in connection with a Change in Control (as defined in the Executive Employment Agreement with reference to [____]) of [____] or (y) by Executive of his Services provided to [____] under the Executive Employment Agreement, in each case, shall also require the payment by [____] to the Provider of the Executive Termination Payment no later than the effective date of such termination.  The effective date of a termination described in clause (y) of this Section 3.4(c)(ii) shall be determined in accordance with the Executive Employment Agreement. 
(iii)In event of the termination of this Agreement on or before the expiration of the Employment Period (as defined in the Executive Employment Agreement) pursuant to Section 3.3, [____] will pay the Executive Termination Payment to the Provider no later than the effective date of such termination; provided, however, that if such termination of this Agreement is at or after the time Executive’s services to [____] or Provider under the Executive Employment Agreement have been terminated for Cause or by Executive without Good Reason (each as defined in the Executive Employment Agreement with reference to either Provider or [____]), then no Executive Termination Payment shall be due. 
(iv)Notwithstanding anything to contrary in this Section 3.4(c), (1) no Executive Termination Payment shall be payable if in connection with the events giving rise to such payment obligation Executive is no longer employed by Provider, and (2) only one Executive Termination Payment shall be paid under this Agreement. 
(v)The “Executive Termination Payment” means the net present value (determined by Provider in good faith, as of the date on which Executive’s services to [____] are terminated (the “Service Termination Date”)) of the sum of: 
(1)     an amount equal to (x) the Executive Percentage then-in effect multiplied by (y) all Executive Allocated Expenses that would have been allocated to [____] pursuant to Section 2.5 (absent termination of Executive’s services to [____]) from and after the Service Termination Date through the earlier of the expiration of the Employment Period or December 31 of the calendar year following the year in which the Service Termination Date occurs (and if the Executive Percentage for such following year has not yet been determined, then the Executive Percentage for such following year will be deemed to be the same as the Executive Percentage for the year in which the Service Termination Date occurs); plus
(2)    an amount equal to (x) [____]’s allocation of the Aggregate Target Bonus (as defined in the Executive Employment Agreement) for the year in which the Service Termination Date occurs multiplied by (y) the ratio of (A) the number of days remaining in the year in which the Service Termination Date occurs to (B) 365; plus

6    

(3)    an amount equal to [____]’s allocation of the Aggregate Target Bonus for the first calendar year commencing after the Service Termination Date (and if [____]’s allocation of the Aggregate Target Bonus for such year has not yet been determined, then this clause (3) shall refer to [____]’s allocation of the Aggregate Target Bonus for the year in which the Service Termination Date occurs); provided, that if the Service Termination Date occurs during the last calendar year of the Employment Period, then this clause (3) shall equal $0; plus
(4)    if the Service Company Term Awards to be granted to Executive by [____] pursuant to Section 2.5(b)(ii) of this Agreement have not been granted on or before the Service Termination Date, then an amount equal to the portion of the $45,000,000 grant value for all Term Awards (as defined in the Executive Employment Agreement) that is allocated to [____] pursuant to Section 4.10(b) of the Executive Employment Agreement (and if the portion of the Term Awards that will be allocated to [____] pursuant to Section 4.10(b) of the Executive Employment Agreement has not yet been determined, then this clause (4) shall refer to the portion of the Term Awards allocated to [____] pursuant to Schedule 2.5 to this Agreement with respect to the Service Company Term Awards granted by [____] in December 2019 pursuant to Section 4.10(a) of the Executive Employment Agreement, unless otherwise agreed by the Provider and [____], in consultation with the Executive); provided that if all Service Company Term Awards have been granted to Executive on or before the Service Termination Date then this clause (4) shall equal $0; plus
(5)    if the Annual Executive Incentive Awards to be granted to Executive by [____] pursuant to Section 2.5(b)(iii) of this Agreement for the year in which the Service Termination Date occurs have not been granted on or before the Service Termination Date, then an amount equal to the Service Company Target Amount (as defined in the Executive Employment Agreement) applicable to [____] pursuant to Section 4.11(b) of the Executive Employment Agreement for such year (and if all Annual Executive Incentive Awards for the year in which the Service Termination Date occurs have been granted to Executive, then this clause (5) shall equal $0); plus
(6)    an amount equal to the Service Company Target Amount (as defined in the Executive Employment Agreement) applicable to [____] for the first calendar year commencing after the Service Termination Date (and if the Service Company Target Amount for such year has not yet been determined, then this clause (6) shall refer to the Service Company Target Amount applicable to [____] for the year in which the Service Termination Date occurs) ; provided, that if the Service Termination Date occurs during the last calendar year of the Employment Period, then this clause (6) shall equal $0.
(d)No Effect on other Services. The Provider shall have no obligation to provide the Services that have been discontinued pursuant to this Section 3.4, and [____]’s obligation to further compensate the Provider for such Services, in each case, from and after the effective date of the termination of such Services in accordance with this Agreement will remain in effect for the remainder of the Term with respect to those Services that have not been so discontinued. Each party will remain liable to the other for any required payment or performance accrued prior to the effective date of the termination of such Services.

7    

(e)Impact on Equity Awards. The impact of termination of any Services provided by Executive pursuant to this Section 3.4 on the Equity Awards will be as specified in the Equity Award Agreements.”
		
	7.
	Amendment to Article V. Article V of the Original Agreement is amended to insert new Section 5.3 as follows: 

“Section 5.3.  Equity Awards. [____] represents and warrants that each equity award granted to Executive with respect to its common stock shall either be exempt from or comply with Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409”).  Without limiting the foregoing, each option granted to Executive that is intended to be exempt from Section 409A shall be with respect to “service recipient stock” and with respect to an “eligible issuer of service recipient stock” (each as defined in Section 409A), shall not contain any feature for the deferral of compensation and shall have an exercise or strike price that is not less than the fair market value of such service recipient stock on the grant date of such award.” 
		
	8.
	Amendment to Section 6.4. Section 6.4 of the Original Agreement is amended to read in its entirety as follows:

“Section 6.4.    Survival. The terms and conditions of this Article VI will survive the expiration or termination of this Agreement only in respect of claims for indemnification asserted against the Indemnitor prior to such termination.”
		
	9.
	Amendment to Section 7.6.  Section 7.6 of the Original Agreement is amended to read in its entirety as follows:

“Section 7.6.  Third-Party Rights.  Nothing expressed or referred to in this Agreement is intended or will be construed to give any Person other than the parties hereto, the [____] Indemnitees, Provider Indemnitees, Executive and their respective successors and permitted assigns any legal or equitable right, remedy or claim under or with respect to this Agreement, or any provision hereof, it being the intention of the parties hereto that this Agreement and all of its provisions and conditions are for the sole and exclusive benefit of the parties to this Agreement, Executive and their respective successors and assigns. For the avoidance of doubt, Executive shall be considered a third party beneficiary of this Agreement with respect to, and entitled to the rights and benefits set forth in, the Amendment and may enforce the applicable provisions of this Agreement as if Executive was a party hereto.”
		
	10.
	Amendment to Section 7.9. Section 7.9(a) of the Original Agreement is amended to read in its entirety as follows:

“(a)    This Agreement will inure to the benefit of and be binding on the parties to this Agreement and their respective legal representatives, successors and permitted assigns, including, for avoidance of doubt successors and assigns of [____] as a result of a Spin Transaction or a Fundamental Corporate Event (each as defined in the Executive Employment Agreement).”
		
	11.
	Amendment to Article VII.  Article VII of the Original Agreement is amended to insert new Section 7.16 as follows: 

8    

“Section 7.16.  Dispute Resolution.  In the event of any dispute arising out of or related to this Agreement or any of the transactions contemplated hereby, the parties shall first negotiate in good faith to resolve such dispute in accordance with this Section 7.16 prior to commencing any action, suit or proceeding before any court or other adjudicatory body.  The parties shall designate representatives to meet to negotiate in good faith a resolution of such dispute for a period of thirty days (which may be extended by agreement of the parties).  If at the end of the good faith negotiation period the parties fail to resolve the dispute, then the parties shall mediate the dispute before a neutral third party mediator under the then current American Arbitration Association (AAA) procedures for mediation of business disputes.  The parties will equally share the cost of the mediation.”
		
	12.
	Counterparts; Electronic Execution. This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Amendment. Delivery of an executed counterpart of this Amendment electronically (including by e-mail delivery of a “.pdf” format data file) shall be equally as effective as delivery of a manually executed counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment electronically also shall deliver a manually executed counterpart of this Amendment but the failure to deliver a manually executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.  

		
	13.
	Entire Agreement. The Original Agreement as amended by this Amendment constitutes the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and thereof, and supersedes any and all prior agreements and understandings, oral or written, relating to the subject matter hereof and thereof.

		
	14.
	Reaffirmation of the Original Agreement. Except as specifically set forth in this Amendment, all other terms and conditions of the Original Agreement shall remain in full force and effect.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, each of the parties has signed this Amendment, or has caused this Amendment to be signed by its duly authorized officer, as of the date first above written.

PROVIDER:

LIBERTY MEDIA CORPORATION

By:                      
Name: Renee Wilm
Title: Chief Legal Officer

[____]:

[____] 

By:                      
Name: Kate Jewell
Title: Assistant Vice President

[Signature Page to [____] Amendment]

Schedule 2.5
Executive Percentage

2020 Executive Percentage

For Executive’s 2020 compensation, the Executive Percentage for each of Provider, Qurate Retail, Inc. (“Qurate”), Liberty Broadband Corporation (“LBC”), GCI Liberty, Inc. (“GCIL”) and Liberty TripAdvisor Holdings, Inc. (“LTAH” and together with Qurate, LBC and GCIL, the “Service Companies” and each, a “Service Company”) will be as set forth below, unless a different allocation is otherwise agreed by Provider, the Service Companies and Executive:  
	
								
	 
	Provider
	Qurate
	GCIL
	LBC
	LTAH

	FWONK
	LSXMK
	BATRK
	QRTEA
	GLIBA
	LBRDK
	LTRPB

	2020 Executive Percentage (by ticker)
	16.0%
	23.0%
	5.0%
	19.0%
	14.0%
	18.0%
	5.0%

	2020 Executive Percentage (by company)
	44.0%
	19.0%
	14.0%
	18.0%
	5.0%

Executive Percentage Methodology
For calendar years 2021 and beyond, the “Executive Percentage” will be determined based on the following two factors, each weighted 50%: (i) the relative market capitalization of shares of Series C Liberty SiriusXM common stock, par value $0.01 per share (“LSXMK”), Series C Liberty Braves common stock, par value $0.01 per share (“BATRK”), and Series C Liberty Formula One common stock, par value $0.01 per share (“FWONK,” and together with LSXMK and BATRK, the “Series C Common Stock”), Series A common stock, par value $0.01 per share, of Qurate (“QRTEA”), Series C common stock, par value $0.01 per share, of LBC (“LBRDK”), Series A common stock, $0.01 per share, of GCIL (“GLIBA”) and Series B common stock, par value $0.01 per share, of LTAH (“LTRPB,” and together with the Series C Common Stock, QRTEA, LBRDK and GLIBA, the “Common Stock”); and (ii) on the average of (x) the percentage allocation of time for all Provider employees across the applicable Service Companies or tracking stock groups represented by all Series C Common Stock and (y) the Executive’s percentage allocation of time across the applicable Service Companies or tracking stock groups represented by all Series C Common Stock (in each case, for the prior calendar year), unless a different allocation method is otherwise agreed by the Provider and the Service Companies in consultation with the Executive.  
Certain 2020 Executive Allocated Expenses
For the avoidance of doubt, the aggregate annual base salary and the initial commitment bonus payable to Executive pursuant to the Executive Employment Agreement shall be allocated to, and reimbursed to Provider by, each Service Company in 2020 based on its respective Executive Percentage as set forth below:   
	
									
	 
	Aggregate Amount
	Allocation of Aggregate Annual Base Salary and  
Initial Commitment Bonus by Company

	Provider
	Qurate
	GCIL
	LBC
	LTAH

	2020 Executive Percentage
	 
	44.0%
	19.0%
	14.0%
	18.0%
	5.0%

	2020 Annual Base Salary
	

	$3,000,000
	

	$1,320,000
	$570,000
	$420,000
	$540,000
	$150,000

	Initial Commitment Bonus
	

	$5,000,000
	

	$2,200,000
	$950,000
	$700,000
	$900,000
	$250,000

Direct Compensation

Direct Compensation
The amounts of the annual cash performance bonus, the Annual Executive Incentive Awards and the Service Company Term Awards payable by each Service Company directly to Executive pursuant to Section 2.5(b) of this Agreement shall be determined as follows:
		
	•
	Annual Cash Performance Bonus.  Executive’s aggregate target annual cash performance bonus amount of $17 million (“Aggregate Annual Target Cash Bonus”) is allocated to each Service Company based on its respective Executive Percentage and may be made subject to the achievement of one or more performance metrics as described in Section 4.3 of the Executive Employment Agreement;

		
	•
	Annual Incentive Awards.  Executive’s aggregate annual equity award target value of $17.5 million (“Aggregate Annual Equity Award Target”) is allocated to each Service Company based on its respective Executive Percentage; and

		
	•
	Service Company Term Awards.  Executive’s aggregate upfront stock option and restricted stock unit (“RSU”) grant date value of $90 million (“Aggregate Term Award”) is allocated to each Service Company based on its respective Executive Percentage.

2020 Allocation
The Aggregate Annual Target Cash Bonus, Aggregate Annual Equity Incentive Award Target and Aggregate Term Award shall be allocated to each Service Company in 2020 based on its respective Executive Percentage as set forth below:  
	
									
	 
	Aggregate Annual Target Cash Bonus
	Allocation of Aggregate Annual Target Cash Bonus by Company

	Provider
	Qurate
	GCIL
	LBC
	LTAH

	2020 Executive Percentage
	 
	44.0%
	19.0%
	14.0%
	18.0%
	5.0%

	2020 Annual Target  
Cash Bonus
	

	$17,000,000
	

	$7,480,000
	$3,230,000
	$2,380,000
	$3,060,000
	$850,000

	
													
	 
	Aggregate Annual Equity Award Target
	Allocation of Aggregate Annual Equity Award Target by Ticker (1)

	Provider
	Qurate
	GCIL
	LBC
	LTAH

	FWONK
	LSXMK
	BATRK
	QRTEA
	GLIBA
	LBRDK
	LTRPB

	2020 Executive Percentage
	 
	16.0%
	23.0%
	5.0%
	19.0%
	14.0%
	18.0%
	5.0%

	2020 Annual Equity Award Target
	

	$17,500,000
	

	

	$2,800,000
	

	$4,025,000
	$875,000
	$3,325,000
	$2,450,000
	$3,150,000
	$875,000

	2020 Annual Equity Awards 
(by company)
	

	$17,500,000
	

	Total: $7,700,000
	$3,325,000
	$2,450,000
	$3,150,000
	$875,000

		
	(1)
	 The exercise price of any options granted by the Provider or a Service Company will equal the fair market value of the underlying stock on the grant date determined in accordance with the governing plan, which will not occur during a blackout. The value will be determined in accordance with the applicable company’s standard grant practice.  

12    

	
													
	 
	Aggregate Term Award (1)
	Allocation of Aggregate Term Award by Ticker (1) (2)

	Provider
	Qurate
	GCIL
	LBC
	LTAH

	FWONK
	LSXMK
	BATRK
	QRTEA
	GLIBA
	LBRDK
	LTRPB

	Executive Percentage
	 
	16.0%
	23.0%
	5.0%
	19.0%
	14.0%
	18.0%
	5.0%

	2019 tranche
	

	$45,000,000
	

	

	$7,200,000
	

	$10,350,000
	$2,250,000
	$8,550,000
	$6,300,000
	$8,100,000
	$2,250,000

	2020 tranche  (estimated)
	

	$45,000,000
	

	

	$7,200,000
	

	$10,350,000
	$2,250,000
	$8,550,000
	$6,300,000
	$8,100,000
	$2,250,000

	Total Term Awards 
(by company)
	

	$90,000,000
	

	Total: $39,600,000
	$17,100,000
	$12,600,000
	$16,200,000
	$4,500,000

		
	(1)
	The Aggregate Term Award will be split into two equal tranches to be granted in December 2019 and December 2020, with each tranche cliff vesting on December 31 of 2023 and 2024, respectively, except LTAH’s awards of upfront RSUs will vest on the fourth anniversary of each grant date. 

		
	(2)
	The exercise price of any options granted by the Provider or a Service Company will equal the fair market value of the underlying stock on the grant date determined in accordance with the governing plan, which will not occur during a blackout. The value will be determined in accordance with the applicable company’s standard grant practice.  

Methodology for Allocation of 2020 tranche of Aggregate Term Awards
With respect to the second tranche of the Aggregate Term Awards to be granted on or before December 15, 2020, the awards will be the responsibility of the Provider and each Service Company based on an allocation of $45 million grant value across each class of Common Stock and on the following two factors, each weighted 50%: (i) the relative market value of each such class of Common Stock and (ii) the average of (x) the percentage allocation of time for all Provider employees across the applicable Service Company or tracking stock groups represented by all Series C Common Stock and (y) the Executive’s percentage allocation of time across the applicable Service Company or tracking stock groups represented by all Series C Common Stock (in each case, for calendar year 2020), unless a different allocation method is otherwise agreed by the Provider and the Service Companies in consultation with the Executive.

13

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