Document:

LMC 12.31.2011 EX 10.7

Exhibit 10.7

LIBERTY MEDIA CORPORATION
2006 DEFERRED COMPENSATION PLAN

(Amended and Restated as of September 23, 2011)

Recitals
In 2006, Liberty Media Corporation, now known as Liberty Interactive LLC (“Old Liberty”), adopted this Plan for the benefit of certain of its employees.  The Plan was amended and restated by Old Liberty in 2008.
The Company (defined below) is an indirect 100%-owned subsidiary of Old Liberty.  On August 30, 2011, the Company and the sole member of Old Liberty (“Old Liberty Parent”) entered into a reorganization agreement (the “Reorganization Agreement”) providing for the separation of Old Liberty Parent and the Company into two publicly traded corporations (the “Split-Off”).  Upon consummation of the Split-Off, employees of Old Liberty will become employees of the Company.  In connection therewith, and in accordance with the Reorganization Agreement, the Company is assuming the Plan (as amended and restated herein) and all liabilities relating thereto.

Plan
		
	1.
	COVERAGE OF PLAN

The Plan is unfunded and is maintained for the purpose of providing a select group of management or highly compensated employees of the Company the opportunity to defer the receipt of Compensation otherwise payable to such Eligible Employees in accordance with the terms of the Plan.
		
	2.
	DEFINITIONS

2.1    “Account” means each of the bookkeeping accounts established pursuant to Section 5.1 and maintained by the Company in the names of the respective Participants, to which all amounts deferred under the Plan and interest on such amounts shall be credited, and from which all amounts distributed under the Plan shall be debited.

2.2    “Active Participant” means each Participant who is actively employed by the Company as an Eligible Employee.

2.3    “Affiliate” means, with respect to any Person, any other Person that, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person.  For purposes of this definition, the term “control,” including its correlative terms “controlled by” and “under common control with,” mean, with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

2.4    “Applicable Interest Rate” means 9% per annum, compounded as of the end of each calendar quarter.

2.5    “Beneficiary” means such person or persons or legal entity or entities, including, but not limited to, an organization exempt from federal income tax under section 501(c)(3) of the Code, designated by a Participant or Beneficiary to receive benefits pursuant to the terms of the Plan after such Participant's or Beneficiary's death.  If no Beneficiary is designated by the Participant or Beneficiary, or if no Beneficiary survives the Participant or Beneficiary (as the case may be), the Participant's Beneficiary shall be the Participant's Surviving Spouse if the Participant has a Surviving Spouse and otherwise the Participant's estate, and the Beneficiary of a Beneficiary shall be the Beneficiary's Surviving Spouse if the Beneficiary has a Surviving Spouse and otherwise the Beneficiary's estate.

2.6    “Board” means the Board of Directors of the Company.

2.7    “Cash Bonus” means the portion of any bonus payable in cash by the Company to an Eligible Employee for services rendered to the Company.

2.8    “Change of Control” means any transaction or series of transactions that constitutes a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company, in each 

case within the meaning of Section 409A.

2.9    “Code” means the Internal Revenue Code of 1986, as amended.

2.10    “Committee” means the committee appointed by the Board to administer the Plan, which shall be the Compensation Committee of the Board or such other committee as the Board may appoint or, if the Board so determines, the Board.

2.11    “Company” means Liberty Media Corporation (formerly known as Liberty CapStarz, Inc.), a Delaware corporation, including any successor thereto by merger, consolidation, acquisition of all or substantially all the assets thereof, or otherwise.

2.12    “Compensation” means an Eligible Employee's base salary and any Cash Bonus payable by the Company to an Eligible Employee for services performed for the Company.

2.13    “Deceased Participant” means:

2.13.1    A Participant whose employment with the Company is terminated by death; or

2.13.2    An Inactive Participant who dies following termination of his or her employment with the Company.

2.14    “Disability” means:

2.14.1    an individual's inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or

2.14.2    circumstances under which, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, an individual is receiving income replacement benefits for a period of not less than three months under an accident or health plan covering employees of the individual's employer.

2.15    “Disabled Participant” means:

2.15.1    A Participant whose employment with the Company is terminated by reason of Disability;

2.15.2    An Inactive Participant who suffers a Disability following termination of his or her employment with the Company; or

2.15.3    The duly-appointed legal guardian of an individual described in Section 2.14.1 or 2.14.2 acting on behalf of such individual.

2.16    “Eligible Compensation” means 50% of an Eligible Employee's Compensation.

2.17    “Eligible Employee” means each employee of the Company who is an officer of the Company at the level of Senior Vice President or above and each other employee of the Company who is designated by the Committee, in its discretion, as an Eligible Employee.

2.18    “Hardship” means a Participant's severe financial hardship due to an unforeseeable emergency resulting from a sudden and unexpected illness or accident of the Participant, or, a sudden and unexpected illness or accident of a dependent (as defined by section 152(a) of the Code, without regard to sections 152(b)(1), 152(b)(2), and 152(d)(1)(B)) of the Participant, or loss of the Participant's property due to casualty, or other similar and extraordinary unforeseeable circumstances arising as a result of events beyond the control of the Participant.  A need to send the Participant's child to college or a desire to purchase a home is not an unforeseeable emergency.  No Hardship shall be deemed to exist to the extent that the financial hardship is or may be relieved (a) through reimbursement or compensation by insurance or otherwise, (b) by borrowing from commercial sources on reasonable commercial terms to the extent that this borrowing would not itself cause a severe financial hardship, (c) by cessation of deferrals under the Plan, or (d) by liquidation of the Participant's other assets to the extent that this liquidation would not itself cause severe financial hardship.  For the purposes of the preceding sentence, the Participant's resources shall be deemed to include those assets of his or her spouse and minor children that are reasonably available to the Participant; however, property held for 

the Participant's child under an irrevocable trust or under a Uniform Gifts to Minors Act custodianship or Uniform Transfers to Minors Act custodianship shall not be treated as a resource of the Participant.  The Committee shall determine whether the circumstances of the Participant constitute an unforeseeable emergency and thus a Hardship within the meaning of this Section 2.18.  Following a uniform procedure, the Committee's determination shall consider any facts or conditions deemed necessary or advisable by the Committee, and the Participant shall be required to submit any evidence of the Participant's circumstances that the Committee requires.  The determination as to whether the Participant's circumstances are a case of Hardship shall be based on the facts of each case; provided however, that all determinations as to Hardship shall be uniformly and consistently made according to the provisions of this Section 2.18 for all Participants in similar circumstances.

2.19    “Inactive Participant” means each Participant (other than a Deceased Participant or a Disabled Participant) who is not actively employed by the Company.

2.20    “Initial Election” means a written election on a form provided by the Company, filed with the Company in accordance with Article 3, pursuant to which an Eligible Employee may elect to defer all or any portion of the Eligible Employee's Eligible Compensation payable for the services performed following the time that such election is filed and designate the time and form of payment of the amount of deferred Compensation to which the Initial Election relates.

2.21    “New Eligible Employee” means an employee of the Company who becomes an Eligible Employee on or after September 24, 2011; provided, however, that any Participant who became an Eligible Employee while in the employ of Old Liberty on or prior to September 23, 2011 will not be considered a New Eligible Employee by reason of becoming an employee of the Company as a consequence of the Split-Off.

2.22    “Old Liberty” has the meaning set forth in the Recitals.

2.23    “Old Liberty Parent” has the meaning set forth in the Recitals.

2.24    “Outside Date” has the meaning set forth in Section 3.5.

2.25    “Participant” means each individual who has made an Initial Election, and who has an undistributed amount credited to an Account under the Plan, including an Active Participant, a Deceased Participant, a Disabled Participant and an Inactive Participant.

2.26    “Performance-Based Compensation” means “performance-based compensation” within the meaning of Section 409A.

2.27    “Performance Period” means a period of at least 12 consecutive months during which a Participant may earn Performance-Based Compensation.

2.28    “Person” means an individual, a corporation, a limited liability company, a partnership, an association, a trust or any other entity or organization.

2.29    “Plan” means the Liberty Media Corporation 2006 Deferred Compensation Plan (As Amended and Restated Effective September 23, 2011), as set forth herein, and as may be amended from time to time.

2.30    “Plan Year” means the calendar year.

2.31    “Reorganization Agreement” has the meaning set forth in the Recitals.

2.32    “Section 409A” means Section 409A of the Code and any Treasury Regulations promulgated under, or other administrative guidance issued with respect to, such Code section.

2.33    “Separation from Service” means the Participant's “separation from service,” as defined in Section 409A, with the Company and all other Persons with whom the Company would be considered a single employer under section 414(b) or 414(c) of the Code, applying the 80% threshold used in such Code sections and the Treasury Regulations thereunder, all within the meaning of Section 409A.

2.34    “Split-Off” has the meaning set forth in the Recitals.

2.35    “Subsequent Election” means a written election on a form provided by the Company, filed with the Company 

in accordance with Article 3, pursuant to which a Participant or Beneficiary may elect to defer (or, in limited cases, to the extent permitted under Section 409A, accelerate) the time of payment of amounts previously deferred in accordance with the terms of a previously made Initial Election or Subsequent Election.

2.36    “Surviving Spouse” means the widow or widower, as the case may be, of a Deceased Participant or a deceased Beneficiary (as applicable).

3.    INITIAL AND SUBSEQUENT ELECTIONS TO DEFER COMPENSATION

3.1    Elections.

3.1.1    Initial Elections.  Each Eligible Employee, by filing an Initial Election at the time and in the form described in this Article 3, shall have the right to defer all or any portion of the Eligible Compensation that he or she otherwise would be entitled to receive for services performed during the Plan Year following the year in which the election is made (or, with respect to a New Eligible Employee, during the Plan Year in which the election is made but only as to Eligible Compensation paid for services performed after the filing of such election), in each case net of applicable withholdings.  An Initial Election with respect to Performance-Based Compensation shall be effective only with respect to Performance-Based Compensation that is not substantially certain to be paid as of the date such election is filed.  The Compensation of such Eligible Employee for a Plan Year shall be reduced in an amount equal to the portion of the Eligible Compensation deferred by such Eligible Employee for such Plan Year pursuant to the Eligible Employee's Initial Election.  Such reduction shall be effected (a) as to any portion of the Eligible Employee's base salary so deferred, on a pro-rata basis from each periodic installment payment of the Eligible Employee's base salary during the Plan Year (in accordance with the general pay practices of the Companies), and (b) as to any Cash Bonus so deferred, from such Cash Bonus as and when otherwise payable.  The amount of any such reduction shall be credited to the Eligible Employee's Account in accordance with Section 5.1.

3.1.2    Subsequent Elections.  Each Participant or Beneficiary shall have the right to elect to defer the time of payment of amounts previously deferred in accordance with the terms of a previously made Initial Election pursuant to the terms of the Plan by filing a Subsequent Election at the time, subject to the requirements and in the form described in this Article 3.

3.2    Filing of Initial Election: General.  An Initial Election shall be made on such form as may be approved by the Committee for this purpose.  Except as provided in Section 3.3, no such Initial Election shall be effective with respect to Compensation other than Performance-Based Compensation unless it is filed with the Company on or before December 31 of the Plan Year preceding the Plan Year to which the Initial Election applies.  An Initial Election described in the preceding sentence shall become irrevocable on December 31 of the Plan Year preceding the Plan Year to which the Initial Election applies.  No such Initial Election shall be effective with respect to Performance-Based Compensation unless it is filed with the Company not less than six months before the end of the Performance Period during which such Performance-Based Compensation may be earned.  An Initial Election described in the preceding sentence shall become irrevocable on the last day prior to the start of the six-month period referred to in such sentence.

3.3    Filing of Initial Election by New Eligible Employees.  Notwithstanding Section 3.2, a New Eligible Employee may elect to defer all or any portion of his or her Eligible Compensation earned for the performance of services in the Plan Year in which the New Eligible Employee becomes a New Eligible Employee, beginning with the payroll period next following the filing of an Initial Election with the Company and before the close of such Plan Year by making and filing the Initial Election with the Company within 30 days of the date on which such New Initial Employee becomes a New Eligible Employee.  Any Initial Election by such New Eligible Employee for succeeding Plan Years shall be made in accordance with Section 3.2.

3.4    Plan Years to which Initial Election May Apply.  A separate Initial Election may be made for each Plan Year as to which an Eligible Employee desires to defer all or any portion of such Eligible Employee's Eligible Compensation, or an Eligible Employee may make an Initial Election with respect to a Plan Year that will remain in effect for subsequent Plan Years unless the Eligible Employee revokes such Initial Election or timely makes a new Initial Election with respect to a subsequent Plan Year.  Any revocation of an Initial Election must be in writing and must be filed with the Company on or before December 31 of the Plan Year immediately preceding the Plan Year to which such revocation applies.  The failure of an Eligible Employee to make an Initial Election for any Plan Year shall not affect such Eligible Employee's right to make an Initial Election for any other Plan Year.

3.5    Initial Election of Distribution Events.  Each Eligible Employee shall, contemporaneously with an Initial Election, also elect the time of payment of the amount of the deferred Compensation to which such Initial Election relates.  Subject to the terms and conditions of the Plan and Section 409A, the distribution event elected by each Eligible Employee may be (a) up to three specific dates selected by the Eligible Employee, none of which occurs later than December 31 of the 30th calendar year 

following the Plan Year to which the Initial Election applies (the “Outside Date”), (b) the earlier to occur of the Outside Date or the Eligible Employee's Separation from Service or (c) such other distribution event permitted under Section 409A as the Committee may approve.

3.5.1    Failure to Elect Distribution Event.  If an Eligible Employee fails to elect a distribution event in accordance with the provisions of this Section 3.5, he or she shall be deemed to have elected the earlier to occur of the Outside Date or the Eligible Employee's Separation from Service as the distribution event.

3.5.2    Installment Payments Treated as a Series of Payments.  To the extent any portion of a Participant's Account is to be distributed in installment payments, the right to such installment payments shall be treated as the entitlement to a series of separate payments for purposes of making Subsequent Elections.

3.6    Subsequent Elections.  Any Subsequent Election with respect to deferred amounts may be made only in accordance with the provisions of this Section 3.6.  No Subsequent Election shall be effective until 12 months after the date on which such Subsequent Election is made (which shall be interpreted to require that any Subsequent Election with respect to a payment scheduled to be made at a specified time or pursuant to a fixed schedule be made at least 12 months in advance of the originally scheduled payment date or, in the case of a life annuity or installment payments treated as a single payment, 12 months before the date the first amount was scheduled to be paid).  Except with respect to a distribution upon Disability, death or Hardship, any Subsequent Election must defer the time of payment of such amount for a minimum of five additional years from the previously elected payment date and may not cause receipt by a Participant or Beneficiary of a lump-sum or percentage payment or the commencement of installment payments to a Participant or Beneficiary, as applicable, to occur on a date that is later than the Outside Date.

3.6.1    Active Participants.  The number of Subsequent Elections that an Active Participant may make under this Section 3.6.1 shall not be limited.

3.6.2    Inactive Participants.  The Committee may, in its sole and absolute discretion, permit an Inactive Participant to make one or more Subsequent Elections.  The number of Subsequent Elections that an Inactive Participant may make under this Section 3.6.2 shall be determined by the Committee in its sole and absolute discretion and need not be the same for all Inactive Participants.

3.6.3    Beneficiaries.  A Deceased Participant's Beneficiary to whom the right to payment under the Plan shall have passed may make a Subsequent Election to defer the time of payment of all or any portion of the Deceased Participant's Account.  Such Beneficiary shall be entitled to one and only one Subsequent Election pursuant to this Section 3.6.3 with respect to a Participant's Account but shall otherwise be treated as the Participant for all other purposes of the Plan.

3.6.4    Disabled Participant.  The Committee may, in its sole and absolute discretion, permit a Disabled Participant to make a Subsequent Election to defer the time of payment of all or any portion of such Participant's Account.  The number of Subsequent Elections that a Disabled Participant may make under this Section 3.6.4 shall be determined by the Committee in its sole and absolute discretion and need not be the same for all Disabled Participants.

3.6.5    Most Recently Filed Initial Election or Subsequent Election Controlling.  Subject to acceleration pursuant to Section 3.8, Section 7.1, or Article 8 (each to the extent permitted under Section 409A), no distribution of the amounts deferred by a Participant for any Plan Year shall be made before the distribution event designated by the Participant or Beneficiary on the most recently filed Initial Election or Subsequent Election with respect to such deferred amount.

3.7    Payment Following Occurrence of Distribution Event.  Following the occurrence of a distribution event designated by a Participant or Beneficiary pursuant to an Initial Election or Subsequent Election made in accordance with this Plan, and subject to any suspension or delay required under Section 3.9 or Section 3.10.2 or elected by the Company under Section 3.10.1, the Company shall make a lump-sum or percentage payment or commence making installment payments, as applicable, of any amount to which such election applies on the 60th day following the date of such distribution event (or, if such day is not a business day, on the next succeeding business day) or on any later date on or before the last day of the calendar year in which such distribution event occurs (or, if later, upon the 15th day of the third month following the date on which such distribution event occurs), provided that the Participant or Beneficiary shall not be permitted to designate the Plan Year of the payment under this sentence.

3.8    Discretion to Accelerate Distributions in Full Upon or Following a Change of Control.  To the extent permitted under Section 409A, in connection with a Change of Control, during the 30 days preceding or the 12-month period following a Change of Control, the Committee may exercise its discretion to terminate the Plan (and all other plans required to be aggregated 

with the Plan under Section 409A) and, notwithstanding any other provision of the Plan or the terms of any Initial Election or Subsequent Election, distribute the Account balance of each Participant in full within 12 months after the date of such termination and thereby effect the revocation of any outstanding Initial Elections or Subsequent Elections.

3.9    Required Suspension of Payment of Benefits.  Notwithstanding any provision of the Plan or any Participant's election as to the date or time of payment of any amount payable under the Plan, to the extent required under Section 409A, any amount that otherwise would be payable to a Participant who is a “specified employee” of the Company, as determined by the Company in accordance with Section 409A, during the six-month period following such Participant's Separation from Service, shall be suspended until the lapse of such six-month period (or, if earlier, the date of death of the Participant).  The amount that otherwise would be payable to such Participant during such period of suspension, together with interest on such suspended amount credited pursuant to the rules of the Plan, shall be paid in a single payment on the day following the end of such six-month period (or, if such day is not a business day, on the next succeeding business day) or within 30 days following the death of the Participant during such six-month period, provided that the death of the Participant during such six-month period shall not cause the acceleration of any amount that otherwise would be payable on any date during such six-month period following the date of the Participant's death.

3.10    Delay of Payment Under Certain Circumstances.  Notwithstanding any provision of the Plan or any Participant's election as to the date or time of payment of any benefit payable under the Plan:

3.10.1    if the Company reasonably anticipates that, with respect to any payment scheduled to be made to a Participant from the Plan during a taxable year, the Company's deduction for such payment would be limited or eliminated by the application of section 162(m) of the Code, such payment may, in the discretion of the Company be delayed; provided that such delay in payment will continue only until either (a) the first taxable year in which the Company reasonably anticipates, or should reasonably anticipate, that the deduction will not be so limited or eliminated or (b) the period beginning with the Participant's Separation from Service and ending on the later of the last day of the taxable year in which the Participant's Separation from Service occurs or the 15th day of the third month following such Separation from Service; provided, that (i) such delay in payment shall be treated as a Subsequent Election (thereby requiring a delay in future payments for at least five years to the extent required under Section 409A) unless all scheduled payments to that Participant that could be delayed in accordance with this Section 3.10.1 also are delayed, and (ii) any distribution under this Section 3.10.1 made upon a Participant's Separation from Service, including a Separation from Service that results in section 162(m) of the Code becoming inapplicable to a Participant, must comply with the provisions of Section 3.9 if the Participant is a “specified employee” of the Company; or

3.10.2    if the Company reasonably anticipates that the making of any payment scheduled to be made from the Plan would violate federal securities law or any other law applicable to the Company, such payment shall be delayed until the earliest date the Company reasonably anticipates that the making of the payment will not cause such violation, provided that the making of a payment that would cause the inclusion of an amount in gross income or the application of any penalty provision or other provision of the Code shall not be treated as a violation of applicable law under this Section 3.10.2.

4.    FORMS OF DISTRIBUTION

4.1    Forms of Distribution.  

4.1.1    Amounts credited to an Account shall be distributed, pursuant to an Initial Election or Subsequent Election, in one of the following forms of distribution:

4.1.1.1    A lump-sum payment; 

4.1.1.2    Substantially equal annual installments over a period of two, three, four or five years; or

4.1.1.3    Payment of two or three specified portions, identified as percentages collectively totaling 100%, of the amount of Compensation deferred for a Plan Year.

If an Eligible Employee fails to elect a form of distribution in accordance with the provisions of this Section 4.1, he or she shall be deemed to have elected to receive a lump-sum payment as the form of distribution.
4.1.2    Notwithstanding any Initial Election, Subsequent Election or any other provision of the Plan to the contrary:

4.1.2.1    distributions shall be made in the form of a lump-sum payment unless the present value of the 

portion of a Participant's Account subject to distribution pursuant to Section 4.1.1.2, as of the benefit commencement date, is more than the applicable dollar amount under section 402(g)(1)(B) of the Code (which is $16,500 for 2011); and

4.1.2.2    if the amount credited to the Participant's Account, plus the Participant's vested interest in any other plan or plans required to be aggregated with this Plan under Section 409A, is equal to or less than the applicable dollar amount under section 402(g)(1)(B) of the Code (which is $16,500 for 2011), the Committee may, in its sole discretion, direct that such amount (and such other interest(s)) be distributed to the Participant (or Beneficiary, as applicable) in one lump-sum payment, provided that such exercise of discretion is evidenced in writing no later than the date of such payment.

4.2    Determination of Account Balances For Purposes of Distribution.  The amount of any distribution made pursuant to Section 4.1 shall be based on the balance in the Participant's Account on the date of distribution and the applicable distribution period.  For this purpose, the value of a Participant's Account shall be calculated by crediting interest at the Applicable Interest Rate through the end of the day immediately preceding the date of distribution.

4.3    Plan-to-Plan Transfers.  The Committee may delegate its authority to arrange for plan-to-plan transfers as described in this Section 4.3 to an officer of the Company or committee of two or more officers of the Company.

4.3.1    The Committee may, with a Participant's consent, make such arrangements as it may deem appropriate to transfer the Company's obligation to pay benefits with respect to such Participant which have not become payable under this Plan to another employer, whether through a deferred compensation plan, program or arrangement sponsored by such other employer or otherwise, or to another deferred compensation plan, program or arrangement sponsored by the Company or an Affiliate.  Following the completion of such transfer, with respect to the benefit transferred, the Participant shall have no further right to payment under this Plan.

4.3.2    The Committee may, with a Participant's consent, make such arrangements as it may deem appropriate to assume another employer's obligation to pay benefits with respect to such Participant which have not become payable under the deferred compensation plan, program or arrangement under which such future right to payment arose, under the Plan, or to assume a future payment obligation of the Company or an Affiliate under another plan, program or arrangement sponsored by the Company or an Affiliate.  Upon the completion of the Plan's assumption of such payment obligation, the Company shall establish an Account for such Participant, and the Account shall be subject to the rules of this Plan, as in effect from time to time.

5.    BOOK ACCOUNTS

5.1    Deferred Compensation Account.  A deferred Compensation Account shall be established for each Eligible Employee when such Eligible Employee becomes a Participant.  Eligible Compensation deferred pursuant to the Plan shall be credited to the Account on the date such Compensation would otherwise have been payable to the Participant.  Interest shall be credited to the Account as provided in Section 5.2.

5.2    Crediting of Interest to Accounts.  Each Participant's Account shall be credited with interest at the Applicable Interest Rate.  Such interest shall be calculated with respect to Eligible Compensation deferred by such Participant in accordance with this Plan from the date such Compensation would otherwise have been payable to the Participant through the end of the day immediately preceding the date on which such deferred Compensation is payable to such Participant (or his or her Beneficiary) in accordance with this Plan.

5.3    Status of Deferred Amounts.  All Compensation deferred under this Plan shall continue for all purposes to be a part of the general funds of the Company.

5.4    Participants' Status as General Creditors.  An Account shall at all times represent a general obligation of the Company.  Each Participant shall be a general creditor of the Company with respect to this obligation and shall not have a secured or preferred position with respect to his or her Account.  Nothing contained herein shall be deemed to create an escrow, trust, custodial account or fiduciary relationship of any kind.  Nothing contained herein shall be construed to eliminate any priority or preferred position of a Participant in a bankruptcy matter with respect to claims for wages.

6.    NO ALIENATION OF BENEFITS

Except as otherwise required by law, the right of any Participant or Beneficiary to any benefit or interest under any of the provisions of the Plan shall not be subject to encumbrance, attachment, execution, garnishment, assignment, pledge, alienation, sale, transfer or anticipation, either by the voluntary or involuntary act of any Participant or Beneficiary or by operation of law, nor shall such payment, right or interest be subject to any other legal or equitable process.

7.    DEATH OF PARTICIPANT

7.1    Death of Participant.  A Deceased Participant's Account shall be distributed in accordance with the last Initial Election or Subsequent Election made by the Deceased Participant before the Deceased Participant's death, unless the Deceased Participant's Beneficiary to whom the right to payment under the Plan shall have passed timely elects to defer the time of payment pursuant to Section 3.6.3.

7.2    Designation of Beneficiaries.  Each Participant and Beneficiary shall have the right to designate one or more Beneficiaries to receive distributions in the event of the Participant's or Beneficiary's death by filing with the Company a Beneficiary designation on the form provided by the Company for such purpose.  The designation of Beneficiary or Beneficiaries may be changed by a Participant or Beneficiary at any time prior to such Participant's or Beneficiary's death by the delivery to the Company of a new Beneficiary designation form.

8.    HARDSHIP AND OTHER ACCELERATION EVENTS 

8.1    Hardship.  Notwithstanding the terms of an Initial Election or Subsequent Election, if, at the Participant's request, the Committee determines that the Participant has incurred a Hardship, the Committee may, in its discretion and to the extent permitted under Section 409A, authorize the immediate distribution of that portion of the Participant's Account reasonably necessary to satisfy the Hardship need (which may include amounts necessary to pay any federal, state, local, or foreign income taxes and penalties reasonably anticipated to result from the distribution).

8.2    Other Acceleration Events.  To the extent permitted under Section 409A, notwithstanding the terms of an Initial Election or Subsequent Election, distribution of all or part of a Participant's Account may be made:

8.2.1    To an individual other than the Participant to the extent necessary to fulfill a domestic relations order (as defined in section 414(p)(1)(B) of the Code).

8.2.2    To the extent reasonably necessary to avoid a violation of an applicable federal, state, local or foreign ethics law or conflicts of interest law (including where such payment is reasonably necessary to permit the Participant to participate in activities in the normal course of his or her position with the Company in which the Participant otherwise would not be able to participate under an applicable rule).

8.2.3    To pay the Federal Insurance Contribution Act (“FICA”) tax imposed under sections 3101 and 3121(v)(2) of the Code on Compensation deferred under the Plan (the “FICA Amount”) plus the income tax at source on wages imposed under section 3401 of the Code with respect to the FICA Amount, and to pay the additional income tax at source on wages attributable to the pyramiding section 3401 wages and taxes, provided that the total amount distributable under this Section 8.2.3 shall not exceed the sum of the FICA Amount and the income tax withholding related to such FICA Amount.

8.2.4    To pay the amounts includable in income under Section 409A, provided that the total amount distributable under this Section 8.2.4 shall not exceed the amount required to be included in income as a result of the failure of this Plan to comply with Section 409A.

9.    INTERPRETATION

9.1    Authority of Committee.  The Committee shall have full and exclusive authority to construe, interpret and administer this Plan and the Committee's construction and interpretation thereof shall be binding and conclusive on all persons for all purposes.

9.2    Claims Procedure.  If an individual (hereinafter referred to as the “Applicant,” which reference shall include the legal representative, if any, of the individual) does not receive timely payment of benefits to which the Applicant believes he or she is entitled under the Plan, the Applicant may make a claim for benefits in the manner hereinafter provided.

An Applicant may file a claim for benefits with the Committee on a form supplied by the Company.  If the Committee wholly or partially denies a claim, the Committee shall provide the Applicant with a written notice stating:
9.2.1    The specific reason or reasons for the denial;

9.2.2    Specific reference to pertinent Plan provisions on which the denial is based;

9.2.3    A description of any additional material or information necessary for the Applicant to perfect the claim and an explanation of why such material or information is necessary; and

9.2.4    Appropriate information as to the steps to be taken in order to submit a claim for review.
Written notice of a denial of a claim shall be provided within 60 days of the receipt of the claim, provided that if special circumstances require an extension of time for processing the claim, the Committee may notify the Applicant in writing that an additional period of up to 60 days will be required to process the claim.

If the Applicant's claim is denied, the Applicant shall have 60 days from the date of receipt of written notice of the denial of the claim to request a review of the denial of the claim by the Committee.  Request for review of the denial of a claim must be submitted in writing.  The Applicant shall have the right to review pertinent documents and submit issues and comments to the Committee in writing.  The Committee shall provide a written decision within 60 days of its receipt of the Applicant's request for review, provided that if special circumstances require an extension of time for processing the review of the Applicant's claim, the Committee may notify the Applicant in writing that an additional period of up to 60 days shall be required to process the Applicant's request for review.
It is intended that the claims procedures of this Plan be administered in accordance with the claims procedure regulations of the Department of Labor set forth in 29 CFR § 2560.503-1.
Claims for benefits under the Plan must be filed with the Committee at the following address:
Liberty Media Corporation
12300 Liberty Boulevard
Englewood, Colorado  80112
Attn:  General Counsel

10.    AMENDMENT OR TERMINATION

10.1    Amendment or Termination.  Except as otherwise provided by Section 10.2, the Company, by action of the Committee, reserves the right at any time, or from time to time, to amend or modify this Plan, including amendments for the purpose of complying with Section 409A.  The Company, by action of the Board, reserves the right at any time to terminate this Plan.

10.2    Amendment of Rate of Credited Earnings.  No amendment shall decrease the Applicable Interest Rate with respect to the portion of a Participant's Account that is attributable to an Initial Election or Subsequent Election made with respect to Eligible Compensation earned in a Plan Year which election has become irrevocable before the date of adoption of such amendment by the Committee.  For purposes of this Section 10.2, a Subsequent Election to defer the payment of part or all of an Account for an additional period after a previously-elected payment date (as described in Section 3.6) shall be treated as a Subsequent Election separate from any previous Initial Election or Subsequent Election with respect to such Account.

11.    WITHHOLDING OF TAXES

Whenever the Company is required to credit deferred Compensation to the Account of a Participant, the Company shall have the right to require the Participant to remit to the Company an amount sufficient to satisfy any federal, state and local withholding tax requirements prior to the date on which the deferred Compensation shall be deemed credited to the Account of the Participant, or take any action whatever that it deems necessary to protect its interests with respect to tax liabilities.  The Company's obligation to credit deferred Compensation to an Account shall be conditioned on the Participant's compliance, to the Company's satisfaction, with any withholding requirement.  To the maximum extent possible, the Company shall satisfy all applicable withholding tax requirements by withholding tax from other Compensation payable by the Company to the Participant, or by the Participant's remittance of cash to the Company in an amount equal to the applicable withholding tax.
12.    MISCELLANEOUS PROVISIONS

12.1    No Right to Continued Employment.  Nothing contained herein shall be construed as conferring upon any Participant the right to remain in the employment of the Company as an executive or in any other capacity.

12.2    Expenses of Plan.  All expenses of the Plan shall be paid by the Company.

12.3    Gender and Number.  Whenever any words are used herein in any specific gender, they shall be construed as though they were also used in any other applicable gender.  The singular form, whenever used herein, shall mean or include the plural form, and vice versa, as the context may require.

12.4    Law Governing Construction.  The construction and administration of the Plan and all questions pertaining thereto, shall be governed by the Employee Retirement Income Security Act of 1974, as amended, and other applicable federal law and, to the extent not governed by federal law, by the internal laws of the State of Colorado.

12.5    Headings Not a Part Hereof.  Any headings preceding the text of the several Articles, Sections, subsections, or paragraphs hereof are inserted solely for convenience of reference and shall not constitute a part of the Plan, nor shall they affect its meaning, construction, or effect.

12.6    Severability of Provisions.  If any provision of this Plan is determined to be void by any court of competent jurisdiction, the Plan shall continue to operate and, for the purposes of the jurisdiction of that court only, shall be deemed not to include the provision determined to be void.

12.7    Compliance with Section 409A.  This Plan is intended to comply in all respects with Section 409A and at all times shall be interpreted and operated in compliance therewith.

13.    EFFECTIVE DATE 

The original effective date of the Plan was December 8, 2006.  This Plan was amended and restated as of December 12, 2008.  This Plan has been further amended and restated as of September 23, 2011, to reflect the transfer of this Plan (and all liabilities associated with this Plan) from Old Liberty to the Company effective as of that same date.
IN WITNESS WHEREOF, the Company has caused this Plan to be executed by its duly authorized officer.
LIBERTY MEDIA CORPORATION
By:                                  
Charles Y. Tanabe
Executive Vice PresidnetLMC 12.31.2011 EX 10.29

Exhibit 10.29

EXECUTION COPY

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

This Amended and Restated Executive Employment Agreement (this “Agreement”), dated effective as of September 23, 2011 (the “Effective Date”), is made by and between Liberty Media Corporation, a Delaware corporation f/k/a Liberty CapStarz, Inc., f/k/a Liberty Splitco, Inc. (the “Company”), and Gregory B. Maffei (the “Executive”).

RECITALS

A.Pursuant to a Contribution Agreement dated as of September 22, 2011, the Executive Employment Agreement dated as of December 17, 2009 (the “Assigned Executive Employment Agreement”) between the Executive and Liberty Media Corporation, a Delaware corporation now known as Liberty Interactive Corporation (“Liberty Interactive”) was assigned to, and assumed by, the Company.  At the time of such assignment, the Company was an indirect wholly-owned subsidiary of  Liberty Interactive.

B.On the Effective Date, Liberty Interactive redeemed (1) all outstanding shares of Liberty Media Corporation Series A Liberty Capital Common Stock (“LCAPA Stock”) for shares of Splitco Series A Splitco Capital Common Stock (“Splitco CAPA Stock”), (2) all outstanding shares of Liberty Media Corporation Series B Liberty Capital Common Stock for shares of Splitco Series B Splitco Capital Common Stock, (3) all outstanding shares of Liberty Media Corporation Series A Liberty Starz Common Stock (“LSTZA Stock”) for shares of Splitco Series A Splitco Starz Common Stock (“Splitco STZA Stock”), and (4) all outstanding shares of Liberty Media Corporation Series B Liberty Starz Common Stock for shares of Splitco Series B Splitco Starz Common Stock.  The foregoing redemptions and the resulting separation of the Company from Liberty Interactive is referred to in this Agreement as the “Split-off.”  

C.On the Effective Date, as contemplated by the Reorganization Agreement dated as of August 30, 2011 between Liberty Interactive and the Company (the “Reorganization Agreement”), (1) each outstanding option held by the Executive to acquire shares of LCAPA Stock (the “Old LCAPA Options”) was converted, automatically, into an option award to acquire a corresponding number of shares of Splitco CAPA Stock (“Splitco CAPA Options”),  (2) each outstanding option held by the Executive to acquire shares of LSTZA Stock (the “Old LSTZA Options”) was converted, automatically, into an option award to acquire a corresponding number of shares of Splitco STZA Stock (“Splitco STZA Options”), (3) each other outstanding LCAPA Stock Award held by Executive was converted, automatically, into an award covering a corresponding number of shares of Splitco CAPA Stock and (4) each other outstanding LSTZA Stock Award held by Executive was converted, automatically, into an award covering a corresponding number of shares of Splitco STZA Stock.

D.The Company has determined that it is in the best interests of the Company and its stockholders to employ the Executive as its President and Chief Executive Officer.  The Company and the Executive desire to amend and restate in its entirety the Assigned Executive Employment Agreement on the terms and conditions set forth in this Agreement.  

E.The Company wishes to assure itself of the services of the Executive for the period hereinafter provided, and the Executive is willing to be employed by the Company for said period, upon the terms and conditions provided in this Agreement.

F.Effective as of the Effective Date, the Executive and Liberty Interactive are entering into a separate agreement with respect to outstanding equity awards of Liberty Interactive held by the Executive that were not converted pursuant to the Split-off (the “Agreement Regarding LINTA Equity Awards”).

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is mutually acknowledged, the Company and the Executive agree as follows: 

		
	1.
	Definitions.

(a)“Affiliate” means any Person Controlling, Controlled by or under common Control with the Company; and “Control” (including the correlative terms “Controlling” and “Controlled”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting 

securities, by contract or otherwise.  For the avoidance of doubt, Liberty Interactive is not an “Affiliate” of the Company as of the Effective Date.

(b)“Board” means the Board of Directors of the Company.

(c)“Cause” means:  (i) the Executive's willful failure to follow the lawful instructions of the Board (other than due to Disability); (ii) the commission by the Executive of any fraud, misappropriation or misconduct that causes demonstrable material injury to the Company or any Affiliate; (iii) the Executive's conviction of, or plea of guilty or nolo contendere to, a felony; or (iv) the Executive's failure to comply in any material respect with this Agreement or any other agreement between the Executive, on the one hand, and the Company or any Affiliate, on the other, if such failure results in demonstrable material injury to the Company or any Affiliate.  Notwithstanding anything contained herein to the contrary, the Executive's employment may not be terminated for Cause pursuant to clause (i), (ii) or (iv) above unless (A) the decision is made by a majority of the Board at a Board meeting where the Executive and his counsel had an opportunity to be heard on at least ten days' prior written notice; (B) the Company provides the Executive with written notice of the Board's decision to terminate the Executive's employment for Cause specifying the particular act(s) or failure(s) to act serving as the basis for such decision; and (C) if such act or failure to act is capable of being cured, the Executive fails to cure any such act or failure to act to the reasonable satisfaction of the Board within ten days after such notice. 

For purposes of this Agreement, no act or failure to act, on the part of the Executive, will be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith and without reasonable belief that the Executive's action or omission was legal, proper, and in the best interests of the Company.  Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company will be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company.  

(d)“Change in Control” means, with respect to the period following the Effective Date (i) any merger, consolidation or share exchange to which the Company is a party as a result of which Persons who are common stockholders of the Company immediately prior thereto have less than a majority of the combined voting power of the outstanding capital stock of the surviving corporation ordinarily (and apart from the rights accruing under special circumstances) having the right to vote in the election of directors immediately following such merger, consolidation or share exchange, (ii) the adoption of any plan or proposal for the liquidation or dissolution of the Company, (iii) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of (1) the Company or (2) the Company's Subsidiaries, taken as a whole, (iv) at any time during any period of two consecutive years beginning on or after the Effective Date, individuals who at the beginning of such period were members of the Board (“Original Directors”) and new directors, if any, whose election or nomination for election to the Board was recommended or approved by a majority of the Original Directors and the new directors whose nomination had previously been so approved, cease for any reason to constitute a majority of the then incumbent members of the Board,  (v) any transaction (or series of related transactions) in which any person (as such term is defined in Sections 13(d)(3) and 14(d)(2) of the Exchange Act), corporation or other entity (other than the Company, any of its Subsidiaries, any employee benefit plan sponsored by the Company or any of its Subsidiaries, any Exempt Person (as defined in the Company's 2011 Incentive Plan, as in effect as of the date hereof) or any member of the Malone Group (as defined in Section 5(c)) shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the then outstanding securities of the Company ordinarily (and apart from the rights accruing under special circumstances) having the right to vote in the election of directors (calculated as provided in Rule 13d-3(d) under the Exchange Act in the case of rights to acquire the Company's securities) or (vi) a spin-off, split-off, split-up or other similar event or events (each, a “Spin Transaction”), either in a single transaction or in a series of related or unrelated transactions (provided that such related or unrelated transactions occur during a period of 24 consecutive months), pursuant to which assets of the Company or of one or more of its Subsidiaries having either a fair market value (as determined in the good faith reasonable judgment of the Board) or book value equal to 40% or more of the total fair market value or book value of the assets of the Company and its Subsidiaries (taken as a whole) are directly or indirectly transferred or distributed by dividend or otherwise, excluding any Spin Transaction in which (A) the Executive is appointed as the chief executive officer of the separate publicly-traded entity that is the subject of such Spin Transaction, whether or not he elects to accept such appointment, and (B) any equity-based awards previously granted by the Company to the Executive are adjusted in a manner that (1) preserves the intrinsic value of such option or similar right (or, in the case of the grant of a new option or similar right, preserves the intrinsic value of the option or similar right in respect of which such new option or similar right is granted) and (2) complies with, or is exempt from, Section 409A of the Code.  For the purpose of calculating whether the 40% threshold described in clause (vi) of the preceding sentence has been reached or exceeded in a series of two or more transactions, the following calculation will apply:

X    =      40 - P
100 - P
where

		
	X
	=    percentage of book or fair market value, as applicable, required to reach the 40% threshold as of the date of the second or any subsequent transaction; and

		
	P
	=    percentage of book or fair market value, as applicable, disposed of in all prior spin-off, split-off, split-up or other similar events to which clause (vi) applies, determined as of the date of each such transaction.

(e)“Code” means the Internal Revenue Code of 1986, as amended.

(f)“Common Stock” means each or any (as the context may require) series of the Company's common stock.

(g)“Disabled” or “Disability” means the Executive's inability to substantially perform his duties to the Company due to physical or mental impairment for six consecutive months and, within 30 days after a notice of termination is given to the Executive, the Executive has not returned to work.  Notwithstanding the foregoing, the Executive will not be considered Disabled unless the Executive is also “disabled,” as such term is defined under Section 409A(a)(2)(C) of the Code.

(h) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor statute or statutes thereto.

(i)“Fundamental Corporate Event” means a corporate event which results in a change to the number or type of shares of stock subject to an Existing Equity Award, including a stock dividend, stock split, reverse stock split, reclassification, recapitalization, reorganization, split-up, spin-off, combination, share exchange, merger, consolidation or similar corporate event.

(j)“Good Reason” means the occurrence of any of the following events:

(i)the failure of the Company to appoint the Executive to, or to permit him to remain in, the positions set forth in Section 3, if that failure is not cured within 10 days after written notice;

(ii)the assignment by the Company to the Executive of duties materially inconsistent with his status as the chief executive officer of a publicly-traded company or any material diminution in the Executive's duties and/or responsibilities, reporting obligations, titles or authority, as set forth in Section 3, if that inconsistency or diminution is not cured within 10 days after written notice;

(iii)a reduction by the Company of the Executive's Base Salary or Target Bonus (it being acknowledged that the Company will have no obligation to actually award any bonus); 

(iv)the Company's failure to provide any payments or employee benefits required to be provided to the Executive and continuation of that failure for 10 days after written notice;

(v)any purported termination by the Company of the Executive's employment for Cause which is not substantially effected pursuant to the procedures described in Section 1(c);

(vi)a Change in Control; provided that the Executive may exercise his right to terminate his employment for Good Reason pursuant to this Section 1(j)(vi) only during the 30-day period that commences 90 days after the occurrence of such Change in Control;

(vii)any material breach of the Agreement or any other agreement between the Executive, on the one hand, and the Company or any Affiliate, on the other, by the Company or any Affiliate, if not cured within 10 days after written notice; and/or

(viii)a failure of the Company to have any successor to the Company assume in writing the Company's obligations under the Agreement, if not cured within 10 days after written notice. 
Notwithstanding the foregoing, Good Reason will not be deemed to exist unless the Executive gives the Company notice within 120 days after the occurrence of the event which the Executive believes constitutes the basis for Good Reason, specifying the particular act or failure to act which the Executive believes constitutes the basis for Good Reason.  

(k)“LINTA Equity Awards” means the Liberty Interactive equity awards covered by the Agreement Regarding LINTA Awards and any other restricted stock, options or other equity or equity derivatives issued or granted to the Executive after the Effective Date by Liberty Interactive or its Subsidiaries.

(l)“Person” means an individual, corporation, limited liability company, partnership, trust, incorporated or unincorporated association, joint venture or other entity of any kind. 

(m)“Separation” means the Executive's “separation from service” from the Company as defined in Treasury Regulation Section 1.409A-1(h).

(n)“Separation from Liberty Interactive” means the Executive's “separation from service” from Liberty Interactive as defined in Treasury Regulation Section 1.409A-1(h). 

(o)“Subsidiary” means, with respect to any Person, any other Person Controlled by that Person.

2.Employment Period.  The Company will employ the Executive and the Executive accepts such employment for the period beginning on the Effective Date and, unless earlier terminated upon the Executive's Separation, ending December 31, 2014 (the “Employment Period”).  

3.Title, Position and Duties.  

(a)Title and Reporting.    During the Employment Period, the Executive will be employed as the Company's President and Chief Executive Officer, and he will report solely and directly to the Board.  All other employees of the Company and its Affiliates (other than the Chairman of the Board, if the Chairman of the Board is an employee of the Company) will report to the Executive or his designees. 

(b)Board Position.  The Executive will continue to serve as a member of the Board immediately following the Effective Date and, so long as there is an Executive Committee of the Board, will be entitled to serve on such committee for so long as the Executive serves on the Board.  Throughout the Employment Period, the Company will nominate and recommend to the stockholders of the Company that the Executive be elected to the Board at each of the Company's annual meetings during the Employment Period.  

(c)Duties.      In his capacity as President and Chief Executive Officer, the Executive will perform such duties during the Employment Period as are consistent with his title and position as President and Chief Executive Officer of a publicly-traded company, it being acknowledged that the duties performed by the Executive, and the level of management authority and responsibility that the Executive had immediately preceding the Effective Date as the President and Chief Executive Officer of Liberty Interactive are consistent with the title and position as President and Chief Executive Officer of a publicly traded company.  No other employee of the Company will have authority or responsibilities that are equal to or greater than those of the Executive (other than the Chairman of the Board, if the Chairman of the Board is an employee of the Company).  Notwithstanding the foregoing, the Executive will not be required to perform any duties or responsibilities which would be likely to result in non-compliance with, or a violation of, any applicable law or regulation.  
(d)Time and Effort.  The Executive will devote his efforts and abilities, and substantially all his business time, to the performance of his duties to the Company; provided that he will, to the extent the same does not substantially interfere with the performance of his duties hereunder, be permitted to: (i) serve on corporate and civic boards and committees; (ii) deliver lectures, fulfill speaking engagements or teach at educational institutions; and (iii) manage personal and family investments; provided further, that notwithstanding anything contained herein to the contrary, the Executive is permitted to continue in the employ and service of Liberty Interactive and its Subsidiaries and the Executive's devotion of his business and other time to such employment and service shall not in any way be deemed to breach this Agreement or any other agreement between the Executive and the Company or any Affiliate or to interfere with the performance of his duties hereunder.  It is expressly understood and agreed that the continued conduct by the Executive of such activities, as listed on Appendix A, will not be deemed to interfere with the performance of the Executive's responsibilities hereunder.

4.Salary, Bonus, Benefits, Expenses and Equity Grants.  

(a)Salary.  For calendar year 2011, the Executive's base salary is $1,575,000 per annum (the “Base Salary”).  The Base Salary will be increased annually by the Company on each January 1 occurring during the Employment Period, to 105% of the Base Salary paid to the Executive in the prior calendar year.  The term “Base Salary” as used in this Agreement will refer to the Base Salary as it may be so increased.

(b)Bonus. For calendar year 2011 and each subsequent calendar year during the Employment Period, the Executive will be eligible to receive a target bonus of 200% of the Executive's Base Salary for such year (the “Target Bonus”).  Any bonus paid to the Executive by Liberty Interactive for calendar year 2011 or any subsequent calendar year during the Employment Period will reduce the amount of the bonus that the Executive is eligible to receive from the Company under this Section 4(b).   The bonus, if any, payable with respect to services performed in any calendar year will be paid prior to March 15th of the year following the year to which such service relates.  The Executive acknowledges that payment of any bonus to the Executive may be made subject to the achievement of one or more Performance Objectives (as defined in the Company's 2011 Incentive Plan, as in effect as of the date hereof) established in good faith by the Board or a committee thereof.

(c)Benefits.  During the Employment Period, the Executive, and his dependents, if applicable, will be entitled to participate in and be covered on the same basis as other senior executives of the Company, under all employee benefit plans and programs of the Company, including without limitation vacation, retirement, health insurance and life insurance.

(d)Vacation.  During the Employment Period, the Executive will be entitled to paid vacation and/or paid time off in accordance with the plans, policies, programs and practices of the Company provided generally to other senior executives of the Company.

(e)Perquisites.   During the Employment Period, the Company will provide the Executive with those perquisites and other personal benefits provided by the Company from time to time to its other senior executive officers during the Employment Period.  In addition, during the Employment Period, the Executive will be entitled to use of aircraft owned or leased by the Company on the terms and conditions (except as otherwise provided in Section 5(b) and Section 5(c)) set forth in the letter agreement dated February 22, 2008, between the Company (as assignee of Liberty Interactive) and the Executive.

(f)Business Expenses.  The Company will promptly pay or reimburse the Executive for reasonable expenses incurred in connection with the Executive's employment in accordance with the Company's standard policies and practices as in effect from time to time.  

(g)Code Section 409A Timing of Reimbursements.  All reimbursements under this Agreement, including without limitation Section 4(f), will be made as soon as practicable following submission of a reimbursement request, but no later than the end of the year following the year during which the underlying expense was incurred (or as may be later provided in Section 10(g)).  Additionally, reimbursements or in-kind benefits made or provided to the Executive during any taxable year will not affect the expenses eligible for reimbursement or in-kind benefits provided in any other taxable year and no such reimbursements or in-kind benefits will be subject to liquidation or exchange for another benefit. 

(h)Equity Grants.  On December 17, 2009, Liberty Interactive granted to the Executive options to acquire: (a) 760,000 shares of LSTZA Stock (the “Original LSTZA Options”), (b) 8,743,000 shares of Liberty Media Corporation Series A Liberty Interactive common stock (the “Original LINTA Options”) and (c) 1,353,000 shares of LCAPA Stock (the “Original LCAPA Options” and, together with the Original LSTZA Options and the Original LINTA Options, the “Original Options”).  The Original LCAPA Options and the Original LSTZA Options were converted into Splitco CAPA Options and Splitco STZA Options, respectively, pursuant to the Split-off and are referred to collectively as the “Converted Original Options.”  The Company hereby represents that  the conversion of the Old LCAPA Options and the Old LSTZA Options into Splitco CAPA Options and Splitco STZA Options, respectively (i) preserved the intrinsic value of the Old LCAPA Options and the Old LSTZA Options and (ii) was effected in a manner that complies with, or is exempt from, Code Section 409A.  Except as otherwise provided in this Section or in Section 5 or Section 6, subject to the Executive's continued employment with any of Liberty Interactive, any other Qualifying Subsidiary (as defined in the Reorganization Agreement) or any of their respective Subsidiaries (as defined in the Reorganization Agreement), or the Company or its Affiliates, 50% of the Converted Original Options of each series will vest on December 17, 2013 and the remaining 50% of the Converted Original Options of each series will vest on December 17, 2014.  Upon the occurrence of a Change in Control prior to the Executive's Separation (regardless of whether such Change in Control prior to the Executive's Separation occurs before or after December 31, 2014), and notwithstanding any provision to the contrary contained herein, in any equity plan, grant agreement or any other document relating to an equity award, (A) any unvested and outstanding portion of the Converted Original Options, (B) any other restricted stock, options and other equity or equity derivatives held by the Executive as of the Effective Date that were issued or granted to the Executive by the Company or which as of the Effective Date are in respect of Common Stock (including any of the same that were originally granted by Liberty Interactive but were converted in the Split-off to relate to Common Stock) (the awards described in Clauses (A) and (B) hereof, the “Existing Equity Awards” and any Existing Equity Award that is an option or similar equity derivative, an “Existing Option Award”) and that are outstanding and unvested at the time of such Change in Control, and (C) any restricted stock, option or other equity or equity derivatives that are issued after the Effective Date to the Executive by the Company or any of its Affiliates pursuant to a Fundamental Corporate Event in full or partial 

replacement of, as an adjustment to, or otherwise with respect to, any Existing Equity Awards (the awards described in the preceding clauses (A), (B) and (C) being referred to herein as the “Equity Awards”) and that are outstanding and unvested at the time of such Change in Control, will immediately vest in full and, with respect to any outstanding Equity Award that is an option or similar equity derivative (“Option Award”) such Option Award will be exercisable throughout the remainder of the full original term of the Option Award (determined without reference to any provision in such Option Award that reduces the exercisability of such Option Award upon the Executive's termination of employment with the Company or any of its Affiliates but otherwise in accordance with the terms and conditions applicable to such Option Award).   Notwithstanding the foregoing, any Equity Award issued or granted to the Executive after the Effective Date by any Affiliate of the Company that is the subject of a Spin Transaction for which the Executive is appointed to serve as Chief Executive Officer after such Spin Transaction will not so vest and be exercisable, and any such Equity Award will be subject to provisions governing the vesting and exercise of such Equity Award upon termination of the Executive's employment by such Affiliate or upon a change in control of such Affiliate that are at least as favorable to the Executive in all material respects as those included in this Agreement, with such changes as may be appropriate to reflect the fact of his employment by such Affiliate.  Notwithstanding the foregoing, in the event that any such Equity Award is subject to (and otherwise not exempt from) Section 409A of the Code, then such Equity Award will only vest in full if (X) such Change in Control would also be an event described in Section 409A(a)(2)(A)(v) of the Code or (Y) such vesting would not otherwise subject the Executive to any tax, interest or penalty imposed under Section 409A of the Code (or any regulation promulgated thereunder).  For the avoidance of doubt, the term “Equity Awards” does not include any LINTA Equity Award.  

(i)Amendments to Option Agreement.  The Original LCAPA Options and the Original LSTZA Options were granted to the Executive pursuant to the Liberty Media Corporation 2000 Incentive Plan (As Amended and Restated Effective February 22, 2007), and are governed by a Non-Qualified Stock Option Agreement dated as of December 17, 2009 between Liberty Interactive (then known as Liberty Media Corporation) and the Executive (the “2009 Option Agreement (2000 Plan)”).  As noted above, pursuant to the Split-off, the Original LCAPA Options were converted into Splitco CAPA Options and the Original LSTZA Options were converted into Splitco STZA Options, with the effect that the issuer of such options from and after the Effective Date is the Company, not Liberty Interactive.  From and after the Effective Date, the 2009 Option Agreement (2000 Plan) is hereby deemed amended with respect to the Converted Original Options to the extent necessary to reflect the terms and conditions of this Agreement, including the conversion of the Original LCAPA Options and the Original LSTZA Options effected pursuant to the Split-off.  As of the date this Agreement was signed, the Company and the Executive were negotiating a form of amended and restated option agreement with respect to the Converted Original Options that includes the amendments to the Converted Original Options effected pursuant to this Agreement.  Pending the execution and delivery of such amended and restated option agreement, the terms of this Agreement will control with respect to the Converted Original Options to the extent there is an inconsistency between this Agreement and the 2009 Option Agreement (2000 Plan) as modified pursuant to the Split-off.

5.Termination of Employment.   

(a)Termination Due to Death.  In the event of the Executive's death during the Employment Period, the Executive's estate or his legal representative, as the case may be, will receive: (i) a lump sum payment equal to any Base Salary earned but unpaid as of the date of Separation; (ii) a lump sum payment of any unpaid expense reimbursement and any amounts required by law to be paid to the Executive; (iii) a lump sum payment of any accrued but unpaid bonus for the prior year; and (iv) a lump sum payment of $7,800,000.  All such payments will be made on the date that is the 45th day after the date of the Executive's Separation, unless that day is not a day on which banking institutions in Denver, Colorado are open for business (a “business day”), in which case such payments will be made on the immediately succeeding business day.  Upon such Separation as a result of the Executive's death (but regardless of whether such Separation occurs before or after the expiration of the Employment Period) and notwithstanding any provision to the contrary contained herein, in any equity plan, grant agreement or any other document relating to an Equity Award, all outstanding, unvested Equity Awards will vest in full and any outstanding Option Award will be exercisable throughout the remainder of the full original term of the Option Award (determined without reference to any provision in such Option Award that reduces the exercisability of such Option Award upon the Executive's termination of employment with the Company or any of its Affiliates but otherwise in accordance with the terms and conditions applicable to such Option Award).

(b)Termination Due to the Executive's Disability.  Upon 30 days' prior written notice to the Executive, the Company may terminate the Executive's employment due to Disability.  If such event occurs during the Employment Period, the Executive or his legal representative, as the case may be, will receive: (i) a lump sum payment equal to any Base Salary earned but unpaid as of the date of Separation; (ii) a lump sum payment of any unpaid expense reimbursement and other amounts required by law to be paid to the Executive; (iii) a lump sum payment of any accrued but unpaid bonus for the prior year; and (iv) a lump sum payment of $7,800,000.  All such payments will be made on the 45th day after the Separation date or, if that day is not a business day, on the next succeeding business day.  In addition, for a period of 18 months following such 

Separation during the Employment Period, the Executive will be entitled to:  (x) continued use of the Company's aircraft (consistent with the terms of Executive's use of such aircraft during the Employment Period), (y) information technology support from the Company, as reasonably requested by the Executive and (z) continuation of such other perquisites as the Executive was entitled to receive under Section 4(e) immediately prior to such Separation.  Upon such Separation due to Disability (but regardless of whether such Separation occurs before or after the expiration of the Employment Period) and notwithstanding any provision to the contrary contained herein, in any equity plan, grant agreement or any other document relating to an Equity Award, all outstanding, unvested Equity Awards will vest in full and any outstanding Option Award will be exercisable throughout the remainder of the full original term of the Option Award (determined without reference to any provision in such Option Award that reduces the exercisability of such Option Award upon the Executive's termination of employment with the Company or any of its  Affiliates but otherwise in accordance with the terms and conditions applicable to such Option Award).

(c)Termination by the Company Without Cause or by the Executive for Good Reason.  

(i)    Upon 30 days' prior written notice to the Executive, the Company may terminate the Executive's employment without Cause.  Upon 30 days' prior written notice to the Company, the Executive may terminate his employment with the Company for Good Reason.  If either such event occurs during the Employment Period the Executive will receive: (A) a lump sum payment equal to any Base Salary earned but unpaid as of the date of Separation; (B) a lump sum payment of any unpaid expense reimbursements and any amounts required by law to be paid to the Executive; and (C) a lump sum payment of any accrued but unpaid bonus for the prior year.  All such payments will be made on the 45th day after the Separation date or, if that day is not a business day, on the next succeeding business day.  In addition, for a period of 18 months following such Separation during the Employment Period, the Executive will be entitled to:  (x) continued use of the Company's aircraft (consistent with the terms of Executive's use of such aircraft during the Employment Period), (y) information technology support from the Company, as reasonably requested by the Executive and (z) continuation of such other perquisites as the Executive was entitled to receive under Section 4(e) immediately prior to such Separation.  Additionally, if such Separation occurs during the Employment Period, the Executive will receive a severance payment equal to $7,800,000 (the “Separation Amount”, which will be paid as follows: (X) an amount equal to 1.5 times the Executive's then current Base Salary (“Salary Continuation Amount”) will be paid in equal monthly installments over the 18 month period commencing on the first payroll period following such Separation and (Y) an amount equal to the Separation Amount less the Salary Continuation Amount will be paid to the Executive in a lump sum on the date prescribed by the fourth sentence of this Section.  

(ii)    Upon such Separation pursuant to Section 5(c)(i) (but regardless of whether it occurs before or after December 31, 2014) and notwithstanding any provision to the contrary herein or in any equity plan, grant agreement or other document relating to an Equity Award, all of the outstanding, unvested Converted Original Options and all other outstanding, unvested Equity Awards (other than any Equity Award granted or issued to the Executive after the Effective Date by any Affiliate for which the Executive continues to serve as Chief Executive Officer after termination of his employment with the Company) will vest in a percentage equal to a fraction the numerator of which is the total combined number of days the Executive was employed by Liberty Interactive, any Qualifying Subsidiary (as defined in the Reorganization Agreement), any of their respective Subsidiaries (as defined in the Reorganization Agreement) the Company or its Affiliates (without duplication) during the vesting period associated with such Equity Award to and including the date of the Executive's Separation plus 548, and the denominator of which is the entire vesting term of such Equity Award (in days).  The foregoing will not apply to the Existing Equity Awards if the Executive makes a “Vesting Continuation Election” for such awards as described in Section 5(c)(iii).

(iii)    If at the time of the Executive's Separation pursuant to Section 5(c)(i), the Executive continues to be employed following such Separation by Liberty Interactive, any Qualifying Subsidiary (as defined in the Reorganization Agreement) or any of their respective Subsidiaries (as defined in the Reorganization Agreement), the Executive may elect to have all, but not less than all, of the outstanding, unvested Existing Equity Awards continue to vest as described below in Section 6.  Such election (a “Vesting Continuation Election”) shall be made if at all by giving written notice to the Company within 60 days following the date of the Executive's Separation pursuant to Section 5(c)(i).  If the Executive makes a Vesting Continuation Election, vesting of the outstanding, unvested Existing Equity Awards following the Executive's Separation shall be governed by Section 6.

(iv)    Notwithstanding Section 5(c)(ii) and Section 5(c)(iii), if (A) the members of the Malone Group (as defined below) cease to beneficially own (within the meaning of Rule 13d-3 under the Exchange Act), directly or indirectly, securities of the Company representing at least 20% of the combined voting power of the then outstanding securities of the Company ordinarily (and apart from rights accruing under special circumstances) having the right to vote in the election of directors (such percentage to be calculated as provided in Rule 13d-3(d) under the Exchange Act in the case of rights to acquire the Company's securities) and (B) within the period beginning 90 days before and ending 210 days after the date the condition 

prescribed in the foregoing clause (A) is satisfied (the “Malone Termination Period”), there shall occur a Separation by the Company without Cause or a Separation by the Executive for Good Reason (regardless of whether it occurs before or after December 31, 2014), then all of the outstanding, unvested Converted Original Options and all other outstanding, unvested Equity Awards (other than any Equity Award granted or issued to the Executive after the Effective Date by any Affiliate for which the Executive continues to serve as Chief Executive Officer after termination of his employment with the Company) will vest in full.  The “Malone Group” means John C. Malone, his spouse, his children and other lineal descendents or any trust, foundation or other Person established by a member of the Malone Group for the benefit of one or more members of the Malone Group or for a charitable purpose.  Subject to Section 5(d) and Section 5(e), any vested Option Awards, including without limitation any Option Award that vested pursuant to the two immediately preceding sentences or the immediately following sentence, will remain exercisable throughout the remainder of the full original term of the Option Award (determined without reference to any provision in such Option Award that reduces the exercisability of such Option Award upon an individual's termination of employment with the Company or any of its Affiliates but otherwise in accordance with the terms and conditions applicable to such Option Award).  Any Equity Awards granted or issued to the Executive after the Effective Date by any Affiliate of the Company which do not become vested and, if applicable, exercisable, pursuant to this Section 5(c) by reason of the Executive's appointment as Chief Executive Officer of such Affiliate shall become vested and, if applicable, exercisable upon his termination of employment for Good Reason or without Cause from such Affiliate in a percentage equal to (i) in the case of such a termination during the Malone Termination Period, 100% or (ii) in the case of such a termination not during the Malone Termination Period, a fraction, the numerator of which is the total combined number of days the Executive was employed by Liberty Interactive, any Qualifying Subsidiary (as defined in the Reorganization Agreement), any of their respective Subsidiaries (as defined in the Reorganization Agreement), the Company and its Affiliates (without duplication) during the vesting period associated with such Equity Award to and including the date of such Separation plus 548, and the denominator of which is the entire vesting term of such Equity Award (in days) (provided that the “Malone Termination Period” will be defined (for the purposes of this sentence) by substituting for “the Company” the Affiliate of the Company for which the Executive is appointed to serve as Chief Executive Officer and “Cause” and “Good Reason” shall be interpreted and applied in a manner that reflects the Executive's employment by such Affiliate, rather than by the Company).  

(d)Termination For Cause.  Subject to the provisions of Section 1(c), the Company may terminate the Executive's employment for Cause.  In such event, the Executive will receive: (i) a lump sum payment equal to any Base Salary earned but unpaid as of the date of Separation; and (ii) a lump sum payment of any unpaid expense reimbursements and any amounts required by law to be paid to the Executive.  All such payments will be made on the 45th day after the Separation date or, if that day is not a business day, on the next succeeding business day.  Additionally, upon such Separation all unvested Equity Awards will be forfeited and all vested, unexercised Equity Awards that are options or similar rights will cease to be exercisable 90 days after the Separation date (but in no event after the stated term of such option or similar right has expired); provided, that if a Separation for Cause occurs after December 31, 2014, any vested, unexercised Converted Original Options will remain exercisable throughout the remainder of the full original term of such options (determined without reference to any provision in such Converted Original Option that reduces the exercisability of such option upon an individual's termination of employment with the Company or any of its Affiliates but otherwise in accordance with the terms and conditions applicable to such Converted Original Option); provided further, that if such Separation occurs after a Change in Control has occurred, all vested Option Awards outstanding at the time of such Separation that, pursuant to such Change in Control, previously became exercisable throughout the remainder of the full original term of such options will remain exercisable throughout the remainder of the full original term of such options (determined without regard to any provision in such Option Award that reduces the exercisability of such Option Award upon the individual's termination of employment with the Company or its Affiliates). 

(e)Termination Without Good Reason.  Upon 30 days' prior written notice to the Company, the Executive will have the right to terminate his employment without Good Reason or any reason at all.  In such event, the Executive will receive: (i) a lump sum payment equal to any Base Salary earned but unpaid as of the date of Separation; (ii) a lump sum payment of any accrued but unpaid bonus for the prior year; and (iii) a lump sum payment of any unpaid expense reimbursements and any amounts required by law to be paid to the Executive.  All such payments will be made on the 45th day after the Separation date or, if that day is not a business day, on the next succeeding business day.  Additionally, upon such Separation all unvested Equity Awards will be forfeited and all outstanding, vested, unexercised Equity Awards that are options or similar rights will cease to be exercisable 90 days after the Separation date (but in no event after the stated term of such option or similar right has expired); provided, that if a Separation without Good Reason occurs after December 31, 2014, any outstanding, vested, unexercised Converted Original Options will remain exercisable throughout the remainder of the full original term of such options (determined without reference to any provision in such Converted Original Option that reduces the exercisability of such option upon an individual's termination of employment with the Company or any of its Affiliates but otherwise in accordance with the terms and conditions applicable to such Converted Original Option); provided further, that if such Separation occurs after a Change in Control has occurred, all vested Option Awards outstanding at the time of such Separation that, pursuant to such Change in Control, previously became exercisable throughout the remainder of the full original term of such options will remain exercisable throughout the remainder of the full original term of such options 

(determined without regard to any provision in such Option Award that reduces the exercisability of such Option Award upon the individual's termination of employment with the Company or its Affiliates).
(f)Specified Employee.  Notwithstanding any other provision of this Agreement, if (i) the Executive is to receive payments or benefits under Section 5 by reason of his Separation other than as a result of his death, (ii) the Executive is a “specified employee” with respect to the Company within the meaning of Section 409A of the Code for the period in which the payment or benefits would otherwise commence, and (iii) such payment or benefit would otherwise subject the Executive to any tax, interest or penalty imposed under Section 409A of the Code (or any regulation promulgated thereunder) if the payment or benefit were to commence within six months after a termination of the Executive's employment, then such payment or benefit required under Section 5 will instead be paid as provided in this Section 5(f).  Each severance payment contemplated under this Section 5 will be treated as a separate payment in a series of separate payments under Treasury Regulation Section 1.409A-2(b)(2)(iii).  Such payments or benefits which would have otherwise been required to be made over such six month period will be paid, without interest, to the Executive in one lump sum payment or otherwise provided to the Executive on the first business day that is six months and one day after the termination of the Executive's employment.  Thereafter, the payments and benefits will continue, if applicable, for the relevant period set forth above.  For purposes of this Agreement, all references to “Separation,” “termination of employment” and other similar language will be deemed to refer to the Executive's “separation from service” with the Company as defined in Treasury Regulation Section 1.409A-1(h), including, without limitation, the default presumptions thereof.

(g)Full Settlement; No Mitigation.  The Company's obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder will not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company or any Affiliate may have against the Executive.  In no event will the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement.

(h)Non-exclusivity of Rights.  Nothing in this Agreement will prevent or limit the Executive's continuing or future participation in any employee benefit plan, program, policy or practice provided by the Company or an Affiliate and for which the Executive may qualify, except as specifically provided herein.  Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan, policy, practice or program of the Company or an Affiliate at or subsequent to a Separation will be payable in accordance with such plan, policy, practice or program, except as explicitly modified by this Agreement. 

6.Vesting Continuation Election.  Notwithstanding anything contained herein or any equity plan, grant agreement or other document relating to an Existing Equity Award to the contrary, the provisions of this Section 6 will apply to the Existing Equity Awards if (i) the Executive's Separation occurs pursuant to Section 5(c)(i) and a Change in Control did not occur prior to such Separation, (ii) Section 5(c)(iv) is not applicable, (iii) the Executive timely makes a Vesting Continuation Election and (iv) the Executive is employed by Liberty Interactive, any Qualifying Subsidiary (as defined in the Reorganization Agreement) or any of their respective Subsidiaries (as defined in the Reorganization Agreement) immediately following such Separation.  

(a)General Vesting.  Except as otherwise provided below in this Section 6, subject to the Executive's continued employment with any of Liberty Interactive, any Qualifying Subsidiary (as defined in the Reorganization Agreement) or any of their respective Subsidiaries (as defined in the Reorganization Agreement), (i) 50% of the Converted Original Options will vest on December 17, 2013, (ii) the remaining 50% of the Converted Original Options will vest on December 17, 2014 and (iii) all other Existing Equity Awards will vest and become exercisable in accordance with the applicable equity award agreements.  

(b)Termination with Liberty Interactive by Reason of Death or Disability.  Upon the Executive's Separation from Liberty Interactive by reason of his death or due to his disability in accordance with Section 4(a) or Section 4(b) of the Agreement Regarding LINTA Equity Awards, and notwithstanding any provision to the contrary contained herein, in any equity plan, grant agreement or any other document relating to an Existing Equity Award, all outstanding, unvested Existing Equity Awards will vest in full and any outstanding Existing Option Award will be exercisable throughout the remainder of the full original term of the Existing Option Award (determined without reference to any provision in such award that reduces the exercisability of such award upon the Executive's termination of employment but otherwise in accordance with the terms and conditions applicable to such Existing Option Award).

(c)Termination by Liberty Interactive Without Cause or by the Executive for Good Reason.  If the Executive's Separation from Liberty Interactive occurs pursuant to Section 4(c) of the Agreement Regarding LINTA Equity Awards (Termination by Liberty Interactive without Cause or by the Executive for Good Reason), then upon such Separation from Liberty Interactive and notwithstanding any provision to the contrary herein or in any equity plan, grant agreement or other document relating to the Existing Equity Awards, all of the outstanding, unvested Existing Option Awards and all other outstanding, unvested Existing Equity Awards will vest in a percentage equal to a fraction the numerator of which is the total 

combined number of days the Executive was employed by Liberty Interactive, any Qualifying Subsidiary (as defined in the Reorganization Agreement), any of their respective Subsidiaries (as defined in the Reorganization Agreement), the Company or its Affiliates (without duplication) during the vesting period associated with such Existing Equity Award to and including the date of the Executive's Separation from Liberty Interactive plus 548, and the denominator of which is the entire vesting term of such Existing Equity Award (in days).  Notwithstanding the foregoing, if (i) the members of the Malone Group cease to beneficially own (within the meaning of Rule 13d-3 under the Exchange Act), directly or indirectly, securities of Liberty Interactive representing at least 20% of the combined voting power of the then outstanding securities of Liberty Interactive ordinarily (and apart from rights accruing under special circumstances) having the right to vote in the election of directors (such percentage to be calculated as provided in Rule 13d-3(d) under the Exchange Act in the case of rights to acquire Liberty Interactive's securities) and (ii) within the period beginning 90 days before and ending 210 days after the date the condition prescribed in the foregoing clause (i) is satisfied (the “Malone Liberty Interactive Termination Period”), the Executive's Separation from Liberty Interactive pursuant to Section 4(c) of the Agreement Regarding LINTA Equity Awards shall occur, then all of the outstanding, unvested Existing Option Awards and any other outstanding, unvested Existing Equity Awards will vest in full.  Subject to Section 6(d) and Section 6(e), any vested Existing Option Awards, including without limitation any Existing Option Award that vested pursuant to this Section 6(c) will remain exercisable throughout the remainder of the full original term of such Existing Option Award (determined without reference to any provision in such award that reduces the exercisability of such award upon an individual's termination of employment but otherwise in accordance with the terms and conditions applicable to such Existing Option Award).

(d)Termination For Cause.  If the Executive's Separation from Liberty Interactive occurs pursuant to Section 4(d) of the Agreement Regarding LINTA Equity Awards (Termination for Cause), then upon such Separation from Liberty Interactive all unvested Existing Equity Awards will be forfeited and all outstanding, vested, unexercised Existing Option Awards will cease to be exercisable 90 days after the Separation from Liberty Interactive date (but in no event after the stated term of such option or similar right has expired); provided, that if such a Separation from Liberty Interactive occurs after December 31, 2014, any outstanding, vested, unexercised Converted Original Options will remain exercisable throughout the remainder of the full original term of such options (determined without reference to any provision in such Converted Original Option that reduces the exercisability of such option upon an individual's termination of employment but otherwise in accordance with the terms and conditions applicable to such Converted Original Option); provided further, that if such Separation from Liberty Interactive occurs after a Change in Control has occurred, all vested Existing Option Awards outstanding at the time of such Separation from Liberty Interactive that, pursuant to such Change in Control, previously became exercisable throughout the remainder of the full original term of such options will remain exercisable throughout the remainder of the full original term of such options (determined without regard to any provision in such Existing Option Award that reduces the exercisability of such Existing Option Award upon an individual's termination of employment but otherwise in accordance with the terms and conditions applicable to such Existing Option Award).

(e)Termination Without Good Reason.  If the Executive's Separation from Liberty Interactive occurs pursuant to Section 4(e) of the Agreement Regarding LINTA Equity Awards (Termination without Good Reason), then upon such Separation all unvested Existing Equity Awards will be forfeited and all outstanding, vested, unexercised Existing Option Awards will cease to be exercisable 90 days after the Separation from Liberty Interactive date (but in no event after the stated term of such option or similar right has expired); provided, that if such a Separation from Liberty Interactive occurs after December 31, 2014, any outstanding, vested, unexercised Converted Original Options will remain exercisable throughout the remainder of the full original term of such options (determined without reference to any provision in such Converted Original Option that reduces the exercisability of such option upon an individual's termination of employment but otherwise in accordance with the terms and conditions applicable to such Converted Original Option); provided further, that if such Separation from Liberty Interactive occurs after a Change in Control has occurred, all vested Existing Option Awards outstanding at the time of such Separation from Liberty Interactive that, pursuant to such Change in Control, previously became exercisable throughout the remainder of the full original term of such options will remain exercisable throughout the remainder of the full original term of such options (determined without regard to any provision in such Existing Option Award that reduces the exercisability of such Existing Option Award upon an individual's termination of employment)

(f)Change in Control.  Upon the occurrence of a Change in Control prior to the Executive's Separation from Liberty Interactive, all outstanding, unvested Existing Equity Awards shall become fully vested and exercisable, and all outstanding Existing Option Awards shall remain exercisable through the remainder of the full original term (determined without regard to any provision in such Existing Option Award that reduces the exercisability of such option upon an individual's termination of employment).

7.Confidential Information. The Executive will not, during or after the Employment Period, without the prior express written consent of the Company, directly or indirectly use or divulge, disclose or make available or accessible any Confidential Information (as defined below) to any person, firm, partnership, corporation, trust or any other entity or third party (other than 

when required to do so in good faith to perform the Executive's duties and responsibilities under this Agreement or when (i) required to do so by a lawful order of a court of competent jurisdiction, any governmental authority or agency, or any recognized subpoena power, or (ii) necessary to prosecute the Executive's rights against the Company or its Affiliates' or to defend himself against any allegations).  The Executive will also proffer to the Company, no later than the effective date of any termination of the Executive's engagement with the Company for any reason, and without retaining any copies, notes or excerpts thereof, all memoranda, computer disks or other media, computer programs, diaries, notes, records, data, customer or client lists, marketing plans and strategies, and any other documents consisting of or containing Confidential Information that are in the Executive's actual or constructive possession or which are subject to the Executive's control at such time.  For purposes of this Agreement, “Confidential Information” will mean all information respecting the business and activities of the Company or any Affiliate of the Company, including, without limitation, the clients, customers, suppliers, employees, consultants, computer or other files, projects, products, computer disks or other media, computer hardware or computer software programs, marketing plans, financial information, methodologies, know-how, processes, practices, approaches, projections, forecasts, formats, systems, trade secrets, data gathering methods and/or strategies of the Company or any Affiliate of the Company.  Notwithstanding the immediately preceding sentence, Confidential Information will not include any information that is, or becomes, generally available to the public (unless such availability occurs as a result of the Executive's breach of any of his obligations under this Section).  If the Executive is in breach of any of the provisions of this Section 7 or if any such breach is threatened by the Executive, in addition to and without limiting or waiving any other rights or remedies available to the Company at law or in equity, the Company shall be entitled to immediate injunctive relief in any court, domestic or foreign, having the capacity to grant such relief, without the necessity of posting a bond, to restrain any such breach or threatened breach and to enforce the provisions of this Section 7.  The Executive agrees that there is no adequate remedy at law for any such breach or threatened breach and, if any action or proceeding is brought seeking injunctive relief, the Executive will not use as a defense thereto that there is an adequate remedy at law.

8.Successors and Assigns.  This Agreement will bind and inure to the benefit of and be enforceable by the Executive, the Company, the Executive's and the Company's respective successors and assigns and the Executive's estate, heirs and legal representatives (as applicable).  The Company will require any successor to all or substantially all of its business and/or assets, whether direct or indirect, by purchase, merger, consolidation, acquisition of stock, or, by an agreement in form and substance reasonably satisfactory to the Executive, expressly to assume and agree to perform this Agreement in the same manner and to the same extent as the Company would be required to perform if no such succession had taken place.   

9.Notices.  Any notice provided for in this Agreement must be in writing and must be either personally delivered, mailed by first class mail (postage prepaid and return receipt requested) or sent by reputable overnight courier service (charges prepaid) to the recipient at the address below indicated:

		
	To the Company:
	Liberty Media Corporation, f/k/a Liberty CapStarz, Inc.

12300 Liberty Boulevard
Englewood, CO  80112
Attention:  Chairman of the Board

With a copy to the Company's
		
	counsel at:
	Liberty Media Corporation, f/k/a Liberty CapStarz, Inc.

12300 Liberty Boulevard
Englewood, CO  80112
Attention:  Legal Department
 
		
	To the Executive: 
	at the address listed in the Company's personnel records

With a copy to the Executive's    
		
	counsel at:
	Dechert LLP

1095 Avenue of the Americas
New York, NY 10036-6797   
Attention:  Stephen W. Skonieczny, Esq. 
Telephone:  (212) 698-3524 
Facsimile:  (212) 314-0024

		
	10.
	General Provisions.

(a)Severability.  Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable 

in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will (except as otherwise expressly provided herein) be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

(b)Entire Agreement.   This Agreement, together with any agreement evidencing the grant of an Equity Award, contains the entire agreement between the parties concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the parties with respect thereto, including without limitation any non-binding term sheets addressing potential provisions of this agreement.   Without limiting the foregoing, the Executive acknowledges and agrees that this Agreement replaces in its entirety the Assigned Executive Employment Agreement and that Liberty Interactive has no further obligations under such agreement. 

(c)No Strict Construction; headings.  The language used in this Agreement will be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction will be applied against any party.  The headings of the sections contained in this Agreement are for convenience only and will not be deemed to control or affect the meaning or construction of any provision of this Agreement.

(d)Counterparts.  This Agreement may be executed and delivered in separate counterparts (including by means of facsimile), each of which is deemed to be an original and all of which taken together constitute one and the same agreement.  This Agreement will become effective only when counterparts have been executed and delivered by all parties whose names are set forth on the signature page(s) hereof.

(e)Applicable Law.  This Agreement will be governed by and construed in accordance with the laws of the State of Colorado, applied without reference to principles of conflict of laws.    

(f)Legal Fees and Other Expenses.  The Company will pay or reimburse the Executive for all legal fees and expenses incurred by the Executive in connection with the review, preparation and negotiation of this Agreement, any option agreement, restricted stock award, Equity Award and/or any other agreements or plans referenced herein and any documents related thereto.  Any such reimbursement will be made as soon as practicable following submission of a reimbursement request, but no later than the later of (i) the end of the year following the year during which the underlying expense was incurred or (ii) the end of the year following the year in which the Executive's right to such reimbursement arises.

(g)Compliance with Section 409A.  To the extent that the provisions of Section 409A of the Code or any Treasury regulations promulgated thereunder are applicable to any amounts payable hereunder, the parties intend that this Agreement will meet the requirements of such Code section and regulations and that the provisions hereof will be interpreted in a manner that is consistent with such intent.  If, however, the Executive is liable for the payment of any tax, penalty or interest pursuant to Section 409A of the Code, or any successor or like provision (the “409A Tax”), with respect to any payments or property transfers received or to be received under this Agreement, the Assigned Executive Employment Agreement or otherwise, the Company will pay the Executive an amount (the “Special Reimbursement”) which, after payment to the Executive (or on the Executive's behalf) of any federal, state and local taxes, including, without limitation, any further tax, penalty or interest under Section 409A of the Code, with respect to or resulting from the Special Reimbursement, equals the net amount of the 409A Tax.  Any payment due to the Executive under this Section will be made to the Executive, or on behalf of the Executive, as soon as practicable after the determination of the amount of such payment, but no sooner than the date on which the Company is required to withhold such amount or the Executive is required to pay such amount to the Internal Revenue Service.  Notwithstanding the foregoing, all payments under this Section will be made to the Executive, or on the Executive's behalf, no later than the end of the year following the year in which the Executive or the Company paid the related taxes, interest or penalties.  The Executive will cooperate with the Company in taking such actions as the Company may reasonably request to assure that this Agreement will meet the requirements of Section 409A of the Code and any regulations promulgated thereunder and to limit the amount of any additional payments required by this Section 10(g) to be made to the Executive. 

(h)Amendment and Waiver.  The provisions of this Agreement may be amended only by a writing signed by the Company and the Executive.  No waiver by a party of a breach or default hereunder will be valid unless in a writing signed by the waiving party, and no such waiver will be deemed a waiver of any subsequent breach or default.

(i)Withholding.  All payments to the Executive or under this Agreement will be subject to withholding on account of federal, state and local taxes as required by law.

(j)Survival.  This Agreement will survive a Separation or the expiration of the Employment Period and will 

remain in full force and effect after such Separation or expiration, but only to the extent that obligations existing as of the date of Separation or expiration have not been fully performed or by their nature would be intended to survive a Separation or expiration, including that the provisions of Sections 6, 7, 8, 9 and 10 will continue in effect in accordance with their terms.  Notwithstanding the foregoing or anything else in this Agreement to the contrary, if the Executive continues to be employed by the Company following December 31, 2014 such employment will be on an “at will” basis unless and until a new employment agreement is entered into.  For the avoidance of doubt, the provisions of Section 5(a), Section 5(b) and Section 5(c) entitling the Executive to various cash payments and similar benefits (other than with respect to Equity Awards)  upon Separation will not apply to any such Separation that occurs at or after the close of business on December 31, 2014, but he will be entitled to enforce those rights as to any such Separation that occurs prior to the close of business on December 31, 2014.  

(k)Arbitration.  Except as provided in Section 7, any controversy, claim or dispute arising out of or in any way relating to this Agreement (including whether such controversy, claim or dispute is subject to arbitration), excepting only claims that may not, by statute, be arbitrated, will be submitted to binding arbitration.  Both the Executive and the Company acknowledge that they are relinquishing their right to a jury trial.  The Executive and the Company agree that arbitration will be the exclusive method for resolving disputes arising out of or related to the Executive's employment with the Company.

The arbitration will be administered by JAMS in accordance with the Employment Arbitration Rules & Procedures of JAMS then in effect and subject to JAMS Policy on Employment Arbitration Minimum Standards, except as otherwise provided in this Agreement.  Arbitration will be commenced and heard in the Denver, Colorado metropolitan area.  Only one arbitrator will preside over the proceedings, who will be selected by agreement of the parties from a list of five or more qualified arbitrators provided by the arbitration tribunal, or if the parties are unable to agree on an arbitrator within 10 business days following receipt of such list, the arbitration tribunal will select the arbitrator.  The arbitrator will apply the substantive law (and the law of remedies, if applicable) of Colorado or federal law, or both, as applicable to the claim(s) asserted.  In any arbitration, the burden of proof will be allocated as provided by applicable law.  The arbitrator will have the authority to award any and all legal and equitable relief authorized by the law applicable to the claim(s) being asserted in the arbitration, as if the claim(s) were brought in a federal court of law.  Either party may bring an action in court to compel arbitration under this Agreement and to enforce an arbitration award.  Discovery, such as depositions or document requests, will be available to the Company and the Executive as though the dispute were pending in U.S. federal court.  The arbitrator will have the ability to rule on pre-hearing motions as though the matter were in a U.S. federal court, including the ability to rule on a motion for summary judgment.

If permitted by applicable law, the fees of the arbitrator and any other fees for the administration of the arbitration that would not normally be incurred if the action were brought in a court of law (e.g., filing fees or room rental fees) will be shared equally by the parties.  If the foregoing is not permitted by applicable law, the fees of the arbitrator and any other fees for the administration of the arbitration that would not normally be incurred if the action were brought in a court of law will be paid by the Company, provided that the Executive will be required to pay the amount of filing fees equal to that which the Executive would be required to pay to file an action in a Colorado state court.  Each party will pay its own attorneys' fees and other costs incurred in connection with the arbitration, unless the relief authorized by law allows otherwise and the arbitrator determines that such fees and costs will be paid in a different manner.  The arbitrator must provide a written decision that is subject to limited judicial review consistent with applicable law.  If any part of this arbitration provision is deemed to be unenforceable by an arbitrator or a court of law, that part may be severed or reformed so as to make the balance of this arbitration provision enforceable.
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IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Executive Employment Agreement to be effective as of the Effective Date.

LIBERTY MEDIA CORPORATION, f/k/a Liberty CapStarz, Inc.

By:                /s/ Charles Y. Tanabe        
Name:          Charles Y. Tanabe
Title:         Executive Vice President
Executed:     February 23, 2012

    
EXECUTIVE:

           /s/ Gregory B. Maffei                                 
Gregory B. Maffei    
Executed:     February 23, 2012

Appendix A
Current Permitted Activities

Chairman and stockholder, 360networks Corporation
Director, Electronic Arts
Owner, Lockerz, Inc.

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