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  Exhibit 10.2    
    

 
 

  LIBERTY ENTERTAINMENT, INC.
  2009 NONEMPLOYEE DIRECTOR INCENTIVE PLAN    
    

 
    ARTICLE I    
    
    PURPOSE OF PLAN    
    

        1.1    Purpose.    The purpose of the Plan is to provide a method whereby eligible Nonemployee Directors of the
Company may be awarded additional remuneration for services rendered and encouraged to invest in capital stock of the Company, thereby increasing their proprietary interest in the Company's businesses
and increasing their personal interest in the continued success and progress of the Company. The Plan is also intended to aid in attracting Persons of exceptional ability to become Nonemployee
Directors of the Company. 

 
 

  ARTICLE II    
    
    DEFINITIONS    
    

        2.1    Certain Defined Terms.    Capitalized terms not defined elsewhere in the Plan shall have the following meanings
(whether used in the singular or plural): 

        "Affiliate"
of the Company means any corporation, partnership, or other business association that, directly or indirectly, through one or more intermediaries, controls, is controlled by,
or is under common control with the Company. 

        "Agreement"
means a stock option agreement, stock appreciation rights agreement, restricted shares agreement, stock units agreement, or an agreement evidencing more than one type of
Award, specified in Section 11.4, as any such Agreement may be supplemented or amended from time to time. 

        "Approved
Transaction" means any transaction in which the Board (or, if approval of the Board is not required as a matter of law, the stockholders of the Company) shall approve
(i) any consolidation or merger of the Company, or binding share exchange, pursuant to which shares of Common Stock of the Company would be changed or converted into or exchanged for cash,
securities, or other property, other than any such transaction in which the common stockholders of the Company immediately prior to such transaction have the same proportionate ownership of the Common
Stock of, and voting power with respect to, the surviving corporation immediately after such transaction, (ii) any merger, consolidation, or binding share exchange to which the Company is a
party as a result of which the 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 Company 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
binding share exchange, (iii) the adoption of any plan or proposal for the liquidation or dissolution of the Company, or (iv) 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 the Company. 

        "Award"
means a grant of Options, SARs, Restricted Shares, Stock Units and/or cash under this Plan. 

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

        "Board
Change" means, during any period of two consecutive years, individuals who at the beginning of such period constituted the entire Board cease for any reason to constitute a
majority thereof unless the election, or the nomination for election, of each new director was approved by a 

 

vote
of at least two-thirds of the directors then still in office who were directors at the beginning of the period. 

        "Code"
means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute or statutes thereto. Reference to any specific Code section shall include any
successor section. 

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

        "Company"
means Liberty Entertainment, Inc., a Delaware corporation. 

        "Control
Purchase" means any transaction (or series of related transactions) in which (i) 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 Subsidiary of the Company, or any employee benefit plan sponsored by the Company or any Subsidiary of the Company) shall
purchase any Common Stock of the Company (or securities convertible into Common Stock of the Company) for cash, securities, or any other consideration pursuant to a tender offer or exchange offer,
without the prior consent of the Board, or (ii) any person (as such term is so defined), corporation, or other entity (other than the Company, any Subsidiary of the Company, any employee
benefit plan sponsored by the Company, or any Subsidiary of the Company or any Exempt Person (as defined below)) 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 20% or more 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), other than in a transaction (or series of related transactions) approved by the
Board. For purposes of this definition, "Exempt Person" means each of (a) the Chairman of the Board, the President and each of the directors of the Company as of the Redemption Date, and
(b) the respective family members, estates, and heirs of each of the Persons referred to in clause (a) above and any trust
or other investment vehicle for the primary benefit of any of such Persons or their respective family members or heirs. As used with respect to any Person, the term "family member" means the spouse,
siblings and lineal descendants of such Person. 

        "Director
Compensation" means the annual retainer and meeting fees, and any other regular cash compensation payable by the Company to a Nonemployee Director for service on the Board. 

        "Disability"
means the 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 which has lasted or can be expected to last for a continuous period of not less than 12 months. 

        "Dividend
Equivalents" means, with respect to Restricted Shares to be issued at the end of the Restriction Period, to the extent specified by the Board only, an amount equal to all
dividends and other distributions (or the economic equivalent thereof) which are payable to stockholders of record during the Restriction Period on a like number and kind of shares of Common Stock. 

        "Domestic
Relations Order" means a domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act, or the rules thereunder. 

        "Effective
Date" means the Redemption Date. 

        "Equity
Security" shall have the meaning ascribed to such term in Section 3(a)(11) of the Exchange Act, and an equity security of an issuer shall have the meaning ascribed thereto
in Rule 16a-1 promulgated under the Exchange Act, or any successor Rule. 

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        "Exchange
Act" means the Securities Exchange Act of 1934, as amended from time to time, or any successor statute or statutes thereto. Reference to any specific Exchange Act section shall
include any successor section. 

        "Fair
Market Value" of a share of any series of Common Stock on any day means the last sale price (or, if no last sale price is reported, the average of the high bid and low asked
prices) for a share of
such series of Common Stock on such day (or, if such day is not a trading day, on the next preceding trading day) as reported on the consolidated transaction reporting system for the principal
national securities exchange on which shares of such series of Common Stock are listed on such day. If for any day the Fair Market Value of a share of the applicable series of Common Stock is not
determinable by any of the foregoing means, then the Fair Market Value for such day shall be determined in good faith by the Board on the basis of such quotations and other considerations as the Board
deems appropriate. 

        "Free
Standing SAR" has the meaning ascribed thereto in Section 7.1. 

        "Holder"
means a Person who has received an Award under this Plan. 

        "Nonemployee
Director" means an individual who is a member of the Board and who is not an employee of the Company or any Subsidiary. 

        "Nonqualified
Stock Option" means a stock option granted under Article VI. 

        "Option"
means a Nonqualified Stock Option. 

        "Person"
means an individual, corporation, limited liability company, partnership, trust, incorporated or unincorporated association, joint venture or other entity of any kind. 

        "Plan"
means this Liberty Entertainment, Inc. 2009 Nonemployee Director Incentive Plan. 

        "Restricted
Shares" means shares of any series of Common Stock or the right to receive shares of any specified series of Common Stock, as the case may be, awarded pursuant to
Article VIII. 

        "Redemption"
means the redemption by Liberty Media Corporation of 90% of the shares of each series of its Liberty Entertainment common stock outstanding for 100% of the outstanding
shares of Common Stock. 

        "Redemption
Date" means 5:00 p.m., New York City time, on the date on which the Redemption occurs. 

        "Restriction
Period" means a period of time beginning on the date of each Award of Restricted Shares and ending on the Vesting Date with respect to such Award. 

        "Retained
Distributions" has the meaning ascribed thereto in Section 8.3. 

        "SARs"
means stock appreciation rights, awarded pursuant to Article VII, with respect to shares of any specified series of Common Stock. 

        "Stock
Unit Awards" has the meaning ascribed thereto in Section 9.1. 

        "Subsidiary"
of a Person means any present or future subsidiary (as defined in Section 424(f) of the Code) of such Person or any business entity in which such Person owns,
directly or indirectly, 50% or more of the voting, capital, or profits interests. An entity shall be deemed a subsidiary of a Person for purposes of this definition only for such periods as the
requisite ownership or control relationship is maintained. 

        "Tandem
SARs" has the meaning ascribed thereto in Section 7.1. 

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        "Vesting
Date," with respect to any Restricted Shares awarded hereunder, means the date on which such Restricted Shares cease to be subject to a risk of forfeiture, as designated in or
determined in accordance with the Agreement with respect to such award of Restricted Shares pursuant to Article VIII. If more than one Vesting Date is designated for an award of Restricted
Shares, reference in the Plan to a Vesting Date in respect of such Award shall be deemed to refer to each part of such Award and the Vesting Date for such part. 

 
 

  ARTICLE III    
    
    ADMINISTRATION    
    

        3.1    Administration.    The Plan shall be administered by the Board, provided that it may delegate to employees of
the Company certain administrative or ministerial duties in carrying out the purposes of the Plan. 

        3.2    Powers.    The Board shall have full power and authority to grant to eligible Persons Options under
Article VI of the Plan, SARs under Article VII of the Plan, Restricted Shares under Article VIII of the Plan, and/or Stock Units under Article IX of the Plan, to determine
the terms and conditions (which need not be identical) of all Awards so granted, to interpret the provisions of the Plan and any Agreements relating to Awards granted under the Plan, and to supervise
the administration of the Plan. The Board in making an Award may provide for the granting or issuance of additional, replacement, or alternative Awards upon the occurrence of specified events,
including the exercise of the original Award. The Board shall have sole authority in the selection of Persons to whom Awards may be granted under the Plan and in the determination of the timing,
pricing, and amount of any such Award, subject only to the express provisions of the Plan. In making determinations hereunder, the Board may take into account such factors as the Board in its
discretion deems relevant. 

        3.3    Interpretation.    The Board is authorized, subject to the provisions of the Plan, to establish, amend, and
rescind such rules and regulations as it deems necessary or advisable for the proper administration of the Plan and to take such other action in connection with or in relation to the Plan as it deems
necessary or advisable. Each action and determination made or taken pursuant to the Plan by the Board, including any interpretation or construction of the Plan, shall be final and conclusive for all
purposes and upon all Persons. No member of the Board shall be liable for any action or determination made or taken by him or the Board in good faith with respect to the Plan. 

 
 

  ARTICLE IV    
    
    SHARES SUBJECT TO THE PLAN    
    

        4.1    Number of Shares.    Subject to the provisions of this Article IV, the maximum number of shares of
Common Stock (i) which may be issued in lieu of Director Compensation pursuant to Section 10.1 and (ii) with respect to which Awards may be granted during the term of the Plan
shall be 5 million shares. Shares of Common Stock will be made available from the authorized but unissued shares of the Company or from shares reacquired by the Company, including shares
purchased in the open market. The shares of Common Stock subject to (i) any Award granted under the Plan that shall expire, terminate or be annulled for any reason without having been exercised
(or considered to have been exercised as provided in Section 7.2), (ii) any Award of any SARs granted under the Plan that shall be exercised for cash, and (iii) any Award of
Restricted Shares or Stock Units that shall be forfeited prior to becoming vested (provided that the Holder received no benefits of ownership of such Restricted Shares or Stock Units other than voting
rights and the accumulation of Retained Distributions and unpaid Dividend Equivalents that are likewise forfeited) shall again be available for purposes of the Plan. 

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        4.2    Adjustments.    If the Company subdivides its outstanding shares of any series of Common Stock into a greater
number of shares of such series of Common Stock (by stock dividend, stock split, reclassification, or otherwise) or combines its outstanding shares of any series of Common Stock into a smaller number
of shares of such series of Common Stock (by reverse stock split, reclassification, or otherwise) or if the Board determines that any stock dividend, extraordinary cash dividend, reclassification,
recapitalization, reorganization, split-up, spin-off, combination, exchange of shares, warrants or rights offering to purchase such series of Common Stock, or other similar
corporate event (including mergers or consolidations other than those which constitute Approved Transactions, adjustments with respect to which shall be governed by Section 11.1(b)) affects any
series of Common Stock so that an adjustment is required to preserve the benefits or potential benefits intended to be made available under this Plan, then the Board, in such manner as the Board, in
its sole discretion, deems equitable and appropriate, shall make such adjustments to any or all of (i) the number and kind of shares of stock which thereafter may be awarded, optioned, or
otherwise made subject to the benefits contemplated by the Plan, (ii) the number and kind of shares of stock subject to outstanding Awards, and (iii) the purchase or exercise price and
the relevant appreciation base with respect to any of the foregoing, provided, however, that the number of shares subject to any Award shall always be a
whole number. Notwithstanding the foregoing, if all shares of any series of
Common Stock are redeemed, then each outstanding Award shall be adjusted to substitute for the shares of such series of Common Stock subject thereto the kind and amount of cash, securities or other
assets issued or paid in the redemption of the equivalent number of shares of such series of Common Stock and otherwise the terms of such Award, including, in the case of Options or similar rights,
the total exercise price, and, in the case of Free Standing SARs, the base price, shall remain constant before and after the substitution (unless otherwise determined by the Board and provided in the
applicable Agreement). The Board may, if deemed appropriate, provide for a cash payment to any Holder of an Award in connection with any adjustment made pursuant to this Section 4.2. 

 
 

  ARTICLE V    
    
    ELIGIBILITY    
    

        5.1    General.    The Persons who shall be eligible to participate in the Plan and to receive Awards under the Plan
shall, subject to Section 5.2, be such Persons who are Nonemployee Directors as the Board shall select. Awards may be made to Nonemployee Directors who hold or have held Awards under this Plan
or any similar or other awards under any other plan of the Company or any of its Affiliates. 

        5.2    Ineligibility.    No Person who is not a Nonemployee Director shall be eligible to receive an Award. 

 
 

  ARTICLE VI    
    
    STOCK OPTIONS    
    

        6.1    Grant of Options.    Subject to the limitations of the Plan, the Board shall designate from time to time those
eligible Persons to be granted Options, the time when each Option shall be granted to such eligible Persons, the series and number of shares of Common Stock subject to such Option, and, subject to
Section 6.2, the purchase price of the shares of Common Stock subject to such Option. 

        6.2    Option Price.    The price at which shares may be purchased upon exercise of an Option shall be fixed by the
Board and may be more than, less than, or equal to the Fair Market Value of the shares of the applicable series of Common Stock subject to the Option as of the date the Option is granted. 

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        6.3    Term of Options.    Subject to the provisions of the Plan with respect to death, retirement and termination of
service, the term of each Option shall be for such period as the Board shall determine as set forth in the applicable Agreement. 

        6.4    Exercise of Options.    An Option granted under the Plan shall become (and remain) exercisable during the term
of the Option to the extent provided in the applicable Agreement and this Plan and, unless the Agreement otherwise provides, may be exercised to the extent exercisable, in whole or in part, at any
time and from time to time during such term; provided, however, that subsequent to the grant of an Option, the Board, at any time before complete
termination of such Option, may accelerate the time or times at which such Option may be exercised in whole or in part (without reducing the term of such Option). 

        6.5    Manner of Exercise.    

        (a)    Form of Payment.    An Option shall be exercised by written notice to the Company upon such terms and
conditions as the Agreement may provide and in accordance with such other procedures for the exercise of Options as the Board may establish from time to time. The method or methods of payment of the
purchase price for the shares to be purchased upon exercise of an Option and of any amounts required by Section 11.8 shall be determined by the Board and may consist of (i) cash,
(ii) check, (iii) promissory note, (iv) whole shares of any series of Common Stock, (v) the withholding of shares of the applicable series of Common Stock issuable upon
such exercise of the Option, (vi) the delivery, together with a properly executed exercise notice, of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale
or loan proceeds required to pay the purchase price, or (vii) any combination of the foregoing methods of payment, or such other consideration and method of payment as may be permitted for the
issuance of shares under the Delaware General Corporation Law. The permitted method or methods of payment of the amounts payable upon exercise of an Option, if other than in cash, shall be set forth
in the applicable Agreement and may be subject to such conditions as the Board deems appropriate. 

        (b)    Value of Shares.    Unless otherwise determined by the Board and provided in the applicable Agreement, shares
of any series of Common Stock delivered in payment of all or any part of the amounts payable in connection with the exercise of an Option, and shares of any series of Common
Stock withheld for such payment, shall be valued for such purpose at their Fair Market Value as of the exercise date. 

        (c)    Issuance of Shares.    The Company shall effect the transfer of the shares of Common Stock purchased under the
Option as soon as practicable after the exercise thereof and payment in full of the purchase price therefor and of any amounts required by Section 11.8, and within a reasonable time thereafter,
such transfer shall be evidenced on the books of the Company. Unless otherwise determined by the Board and provided in the applicable Agreement, (i) no Holder or other Person exercising an
Option shall have any of the rights of a stockholder of the Company with respect to shares of Common Stock subject to an Option granted under the Plan until due exercise and full payment has been
made, and (ii) no adjustment shall be made for cash dividends or other rights for which the record date is prior to the date of such due exercise and full payment. 

        6.6    Nontransferability.    Unless otherwise determined by the Board and provided in the applicable Agreement,
Options shall not be transferable other than by will or the laws of descent and distribution or pursuant to a Domestic Relations Order, and, except as otherwise required pursuant to a Domestic
Relations Order, Options may be exercised during the lifetime of the Holder thereof only by such Holder (or his or her court-appointed legal representative). 

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  ARTICLE VII    
    
    SARS    
    

        7.1    Grant of SARs.    Subject to the limitations of the Plan, SARs may be granted by the Board to such eligible
Persons in such numbers, with respect to any specified series of Common Stock, and at such times during the term of the Plan as the Board shall determine. A SAR may be granted to a Holder of an Option
(hereinafter called a "related Option") with respect to all or a portion of the shares of Common Stock subject to the related Option (a "Tandem SAR") or may be granted separately to an eligible
Nonemployee Director (a "Free Standing SAR"). Subject to the limitations of the Plan, SARs shall be exercisable in whole or in part upon notice to the Company upon such terms and conditions as are
provided in the Agreement. 

        7.2    Tandem SARs.    A Tandem SAR may be granted either concurrently with the grant of the related Option or at any
time thereafter prior to the complete exercise, termination, expiration, or cancellation of such related Option. Tandem SARs shall be exercisable only at the time and to the extent that the related
Option is exercisable (and may be subject to such additional limitations on exercisability as the Agreement may provide) and in no event after the complete termination or full exercise of the related
Option. Upon the exercise or termination of the related Option, the Tandem SARs with respect thereto shall be canceled automatically to the extent of the number of shares of Common Stock with respect
to which the related Option was so exercised or terminated. Subject to the limitations of the Plan, upon the exercise of a Tandem SAR and unless otherwise determined by the Board and provided in the
applicable Agreement, (i) the Holder thereof shall be entitled to receive from the Company, for each share of the applicable series of Common Stock with respect to which the Tandem SAR is being
exercised, consideration (in the form determined as provided in Section 7.4) equal in value to the excess of the Fair Market Value of a share of the applicable series of Common Stock with
respect to which the Tandem SAR was granted on the date of exercise over the related Option purchase price per share, and (ii) the related Option with respect thereto shall be canceled
automatically to the extent of the number of shares of Common Stock with respect to which the Tandem SAR was so exercised. 

        7.3    Free Standing SARs.    Free Standing SARs shall be exercisable at the time, to the extent and upon the terms
and conditions set forth in the applicable Agreement. The base price of a Free Standing SAR may be more than, less than, or equal to the Fair Market Value of the applicable series of Common Stock with
respect to which the Free Standing SAR was granted as of the date the Free Standing SAR is granted. Subject to the limitations of the Plan, upon the exercise of a Free Standing SAR and unless
otherwise determined by the Board and provided in the applicable Agreement, the Holder thereof shall be entitled to receive from the Company, for each share of the applicable series of Common Stock
with respect to which the Free Standing SAR is being exercised, consideration (in the form determined as provided in Section 7.4) equal in value to the excess of the Fair Market Value of a
share of the applicable series of Common Stock with respect to which the Free Standing SAR was granted on the date of exercise over the base price per share of such Free Standing SAR. 

        7.4    Consideration.    The consideration to be received upon the exercise of a SAR by the Holder shall be paid in
cash, shares of the applicable series of Common Stock with respect to which the SAR was granted (valued at Fair Market Value on the date of exercise of such SAR), a combination of cash and such shares
of the applicable series of Common Stock or such other consideration, in each case, as provided in the Agreement. No fractional shares of Common Stock shall be issuable upon exercise of a SAR, and
unless otherwise provided in the applicable Agreement, the Holder will receive cash in lieu of fractional shares. Unless the Board shall otherwise determine, to the extent a Free Standing SAR is
exercisable, it will be exercised automatically for cash on its expiration date. 

        7.5    Limitations.    The applicable Agreement may provide for a limit on the amount payable to a Holder upon
exercise of SARs at any time or in the aggregate, for a limit on the number of SARs that 

7

 

may
be exercised by the Holder in whole or in part for cash during any specified period, for a limit on the time periods during which a Holder may exercise SARs, and for such other limits on the
rights of
the Holder and such other terms and conditions of the SAR, including, without limitation, a condition that the SAR may be exercised only in accordance with rules and regulations adopted from time to
time, as the Board may determine. Unless otherwise so provided in the applicable Agreement, any such limit relating to a Tandem SAR shall not restrict the exercisability of the related Option. Such
rules and regulations may govern the right to exercise SARs granted prior to the adoption or amendment of such rules and regulations as well as SARs granted thereafter. 

        7.6    Exercise.    For purposes of this Article VII, the date of exercise of a SAR shall mean the date on
which the Company shall have received notice from the Holder of the SAR of the exercise of such SAR (unless otherwise determined by the Board and provided in the applicable Agreement). 

        7.7    Nontransferability.    Unless otherwise determined by the Board and provided in the applicable Agreement,
(i) SARs shall not be transferable other than by will or the laws of descent and distribution or pursuant to a Domestic Relations Order, and (ii) except as otherwise required pursuant to
a Domestic Relations Order, SARs may be exercised during the lifetime of the Holder thereof only by such Holder (or his or her court-appointed legal representative). 

 
 

  ARTICLE VIII    
    
    RESTRICTED SHARES    
    

        8.1    Grant.    Subject to the limitations of the Plan, the Board shall designate those eligible Persons to be
granted awards of Restricted Shares, shall determine the time when each such Award shall be granted, shall determine whether shares of Common Stock covered by awards of Restricted Shares will be
issued at the beginning or the end of the Restriction Period and whether Dividend Equivalents will be paid during the Restriction Period in the event shares of the applicable series of Common Stock
are to be issued at the end of the Restriction Period, and shall designate (or set forth the basis for determining) the Vesting Date or Vesting Dates for each award of Restricted Shares, and may
prescribe other restrictions, terms, and conditions applicable to the vesting of such Restricted Shares in addition to those provided in the Plan. The Board shall determine the price, if any, to be
paid by the Holder for the Restricted Shares; provided, however, that the issuance of Restricted Shares shall be made for at least the minimum
consideration necessary to permit such Restricted Shares to be deemed fully paid and nonassessable. All determinations made by the Board pursuant to this Section 8.1 shall be specified in the
Agreement. 

        8.2    Issuance of Restricted Shares at Beginning of the Restriction Period.    If shares of the applicable series of
Common Stock are issued at the beginning of the Restriction Period, the stock certificate or certificates
representing such Restricted Shares shall be registered in the name of the Holder to whom such Restricted Shares shall have been awarded. During the Restriction Period, certificates representing the
Restricted Shares and any securities constituting Retained Distributions shall bear a restrictive legend to the effect that ownership of the Restricted Shares (and such Retained Distributions), and
the enjoyment of all rights appurtenant thereto, are subject to the restrictions, terms, and conditions provided in the Plan and the applicable Agreement. Such certificates shall remain in the custody
of the Company or its designee, and the Holder shall deposit with the custodian stock powers or other instruments of assignment, each endorsed in blank, so as to permit retransfer to the Company of
all or any portion of the Restricted Shares and any securities constituting Retained Distributions that shall be forfeited or otherwise not become vested in accordance with the Plan and the applicable
Agreement. 

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        8.3    Restrictions.    Restricted Shares issued at the beginning of the Restriction Period shall constitute issued
and outstanding shares of the applicable series of Common Stock for all corporate purposes. The Holder will have the right to vote such Restricted Shares, to receive and retain such dividends and
distributions, as the Board may designate, paid or distributed on such Restricted Shares, and to exercise all other rights, powers, and privileges of a Holder of shares of the applicable series of
Common Stock with respect to such Restricted Shares; except, that, unless otherwise determined by the Board and provided in the applicable Agreement,
(a) the Holder will not be entitled to delivery of the stock certificate or certificates representing such Restricted Shares until the Restriction Period shall have expired and unless all other
vesting requirements with respect thereto shall have been fulfilled or waived; (b) the Company or its designee will retain custody of the stock certificate or certificates representing the
Restricted Shares during the Restriction Period as provided in Section 8.2; (c) other than such dividends and distributions as the Board may designate, the Company or its designee will
retain custody of all distributions ("Retained Distributions") made or declared with respect to the Restricted Shares (and such Retained Distributions will be subject to the same restrictions, terms
and vesting, and other conditions as are applicable to the Restricted Shares) until such time, if ever, as the Restricted Shares with respect to which such Retained Distributions shall have been made,
paid, or declared shall have become vested, and such Retained Distributions shall not bear interest or be segregated in a separate account; (d) the Holder may not sell, assign, transfer,
pledge, exchange, encumber, or dispose of the Restricted Shares or any Retained Distributions or his interest in any of them during the Restriction Period; and (e) a breach of any restrictions,
terms, or conditions provided in the Plan or established by the Board with respect to any Restricted Shares or Retained Distributions will cause a forfeiture of such Restricted Shares and any Retained
Distributions with respect thereto. 

        8.4    Issuance of Stock at End of the Restriction Period.    Restricted Shares issued at the end of the Restriction
Period shall not constitute issued and outstanding shares of the applicable series of Common Stock, and the Holder shall not have any of the rights of a stockholder with respect to the shares of
Common Stock covered by such an award of Restricted Shares, in each case until such shares shall have been transferred to the Holder at the end of the Restriction Period. If and to the extent that
shares of Common Stock are to be issued at the end of the Restriction Period, the Holder shall be entitled to receive Dividend Equivalents with respect to the shares of Common Stock covered thereby
either (i) during the Restriction Period or (ii) in accordance with the rules applicable to Retained Distributions, as the Board may specify in the Agreement. 

        8.5    Cash Awards.    In connection with any award of Restricted Shares, an Agreement may provide for the payment of
a cash amount to the Holder of such Restricted Shares at any time after such Restricted Shares shall have become vested. Such cash awards shall be payable in accordance with such additional
restrictions, terms, and conditions as shall be prescribed by the Board in the Agreement and shall be in addition to any other compensation payments which such Holder shall be otherwise entitled or
eligible to receive from the Company. 

        8.6    Completion of Restriction Period.    On the Vesting Date with respect to each award of Restricted Shares and
the satisfaction of any other applicable restrictions, terms, and conditions, (a) all or the applicable portion of such Restricted Shares shall become vested, (b) any Retained
Distributions and any unpaid Dividend Equivalents with respect to such Restricted Shares shall become vested to the extent that the Restricted Shares related thereto shall have become vested, and
(c) any cash award to be received by the Holder with respect to such Restricted Shares shall become payable, all in accordance with the terms of the applicable Agreement. Any such Restricted
Shares, Retained Distributions, and any unpaid Dividend Equivalents that shall not become vested shall be forfeited to the Company, and the Holder shall not thereafter have any rights (including
dividend and voting rights) with respect to such Restricted Shares, Retained Distributions, and any unpaid Dividend Equivalents that shall have been so forfeited. The Board may, in its discretion,
provide that the delivery of any Restricted Shares, Retained Distributions, and unpaid Dividend Equivalents that shall have become 

9

 

vested,
and payment of any cash awards that shall have become payable, shall be deferred until such date or dates as the recipient may elect. Any election of a recipient pursuant to the preceding
sentence shall be filed in writing with the Board in accordance with such rules and regulations, including any deadline for the making of such an election, as the Board may provide. 

 
 

  ARTICLE IX    
    
    STOCK UNITS    
    

        9.1    Grant.    In addition to granting awards of Options, SARs, and Restricted Shares, the Board shall, subject to
the limitations of the Plan, have authority to grant to eligible Persons awards of Stock Units which may be in the form of shares of any specified series of Common Stock or units, the value of which
is based, in whole or in part, on the Fair Market Value of the shares of any specified series of Common Stock. Subject to the provisions of the Plan, including any rules established pursuant to
Section 9.2, awards of Stock Units shall be subject to such terms, restrictions, conditions, vesting requirements, and payment rules as the Board may determine in its discretion, which need not
be
identical for each Award. The determinations made by the Board pursuant to this Section 9.1 shall be specified in the applicable Agreement. 

        9.2    Rules.    The Board may, in its discretion, establish any or all of the following rules for application to an
Award of Stock Units: 

        (a)   Any
shares of Common Stock which are part of an award of Stock Units may not be assigned, sold, transferred, pledged, or otherwise encumbered prior to the date on which
the shares are issued or, if later, the date provided by the Board at the time of the Award. 

        (b)   Such
Awards may provide for the payment of cash consideration by the Person to whom such Award is granted or provide that the Award, and any shares of Common Stock to be
issued in connection therewith, if applicable, shall be delivered without the payment of cash consideration; provided, however, that the issuance of any
shares of Common Stock in connection with an Award of Stock Units shall be for at least the minimum consideration necessary to permit such shares to be deemed fully paid and nonassessable. 

        (c)   Awards
of Stock Units may relate in whole or in part to performance or other criteria established by the Board at the time of grant. 

        (d)   Awards
of Stock Units may provide for deferred payment schedules, vesting over a specified period of service, the payment (on a current or deferred basis) of dividend
equivalent amounts with respect to the number of shares of Common Stock covered by the Award, and elections by the Holder to defer payment of the Award or the lifting of restrictions on the Award, if
any. 

        (e)   In
such circumstances as the Board may deem advisable, the Board may waive or otherwise remove, in whole or in part, any restrictions or limitations to which a Stock
Unit Award was made subject at the time of grant. 

 
 

  ARTICLE X    
    
    STOCK AWARDS IN LIEU OF CASH DIRECTOR FEES    
    

        10.1    General.    Each Nonemployee Director shall have the option to elect to receive shares of one or more series
of Common Stock, as prescribed by the Board, in lieu of all or part of the Director Compensation otherwise payable by the Company during each calendar quarter. Subject to any applicable Purchase
Restriction as described in Section 10.3, to the extent a Nonemployee Director has elected in writing to receive stock in lieu of Director Compensation, such Nonemployee Director will receive
shares of Common Stock on the last day of the calendar quarter for which the Director 

10

 

Compensation
was earned. The Director Compensation shall be converted to a number of shares of Common Stock equal in value to such Director Compensation based on the Fair Market Value of such shares
on the last day of the calendar quarter for which the Director Compensation would otherwise be payable to the Nonemployee Director, with any fractional shares paid in cash. For this purpose, if the
last day of the calendar quarter is not a trading day, then Fair Market Value shall be determined as of the next succeeding trading day. Any shares issued in lieu of Director Compensation shall be
issued free of all restrictions except as required by law. 

        10.2    Timing of Election.    A Nonemployee Director's election pursuant to Section 10.1 must be made no later
than the 30th calendar day (or such other day as the Board may prescribe) prior to the end of the calendar quarter to which the election applies in accordance with the procedures established by
the Board. Once an election is made with respect to a particular calendar quarter, it may not be withdrawn or substituted unless the Board determines, in its sole discretion, that the withdrawal or
substitution is occasioned by an extraordinary or unanticipated event. 

        10.3    Election Void During Restricted Period.    If, on the date shares would be purchased pursuant to an election
under Section 10.1, there is in place any restriction under applicable law (including, without limitation, a blackout period under the Sarbanes-Oxley Act of 2002) or the rules of the principal
national securities exchange on which shares of the applicable series of Common Stock are traded (a "Purchase Restriction") which would prohibit the Nonemployee Director from making such a purchase,
then such shares shall be purchased on the first trading day following the lapse or removal of the Purchase Restriction based on the Fair Market Value of the shares on such trading day. 

        10.4    Conditions.    Nothing contained herein shall preclude the Board, in its sole discretion, from imposing
conditions on any election made under Section 10.1, including, without limitation, the conditions described in Section 10.3. 

 
 

  ARTICLE XI    
    
    GENERAL PROVISIONS    
    

        11.1    Acceleration of Options, SARs, Restricted Shares and Stock Units.    

        (a)    Death or Disability.    If a Holder's service shall terminate by reason of death or Disability, notwithstanding
any contrary waiting period, installment period, vesting schedule, or Restriction Period in any Agreement or in the Plan, unless the applicable Agreement provides otherwise: (i) in the case of
an Option or SAR, each outstanding Option or SAR granted under the Plan shall immediately become exercisable in full in respect of the aggregate number of shares covered thereby; (ii) in the
case of Restricted Shares, the Restriction Period applicable to each such Award of Restricted Shares shall be deemed to have expired and all such Restricted Shares, any related Retained Distributions
and any unpaid Dividend Equivalents shall become vested and any cash amounts payable pursuant to the applicable Agreement shall be adjusted in such manner as may be provided in the Agreement; and
(iii) in the case of Stock Units, each such award of Stock Units shall become vested in full. 

        (b)    Approved Transactions; Board Change; Control Purchase.    In the event of any Approved Transaction, Board
Change or Control Purchase, notwithstanding any contrary waiting period, installment period, vesting schedule, or Restriction Period in any Agreement or in the Plan, unless the applicable Agreement
provides otherwise: (i) in the case of an Option or SAR, each such outstanding Option or SAR granted under the Plan shall become exercisable in full in respect of the aggregate number of shares
covered thereby; (ii) in the case of Restricted Shares, the Restriction Period applicable to each such Award of Restricted Shares shall be deemed to have expired and all such Restricted Shares,
any related Retained Distributions, and any unpaid Dividend Equivalents shall become vested and any cash amounts payable pursuant to the 

11

 

applicable
Agreement shall be adjusted in such manner as may be provided in the Agreement; and (iii) in the case of Stock Units, each such award of Stock Units shall become vested in full, in
each case effective upon the Board Change or Control Purchase or immediately prior to consummation of the Approved Transaction. Notwithstanding the foregoing, unless otherwise provided in the
applicable Agreement, the Board may, in its discretion, determine that any or all outstanding Awards of any or all types granted pursuant to the Plan will not vest or become exercisable on an
accelerated basis in connection with an Approved Transaction if effective provision has been made for the taking of such action which, in the opinion of the Board, is equitable and appropriate to
substitute a new Award for
such Award or to assume such Award and to make such new or assumed Award, as nearly as may be practicable, equivalent to the old Award (before giving effect to any acceleration of the vesting or
exercisability thereof), taking into account, to the extent applicable, the kind and amount of securities, cash, or other assets into or for which the applicable series of Common Stock may be changed,
converted, or exchanged in connection with the Approved Transaction. 

        11.2    Termination of Service.    

        (a)    General.    If a Holder's service shall terminate prior to the complete exercise of an Option or SAR (or deemed
exercise thereof, as provided in Section 7.2) or during the Restriction Period with respect to any Restricted Shares or prior to the vesting or complete exercise of any Stock Units, then such
Option, SAR, or Stock Unit shall thereafter be exercisable, and the Holder's rights to any unvested Restricted Shares, Retained Distributions, unpaid Dividend Equivalents, and cash amounts and any
such unvested Stock Units shall thereafter vest, in each case solely to the extent provided in the applicable Agreement; provided, however, that, unless
otherwise determined by the Board and provided in the applicable Agreement, (i) no Option or SAR may be exercised after the scheduled expiration date thereof; (ii) if the Holder's
service terminates by reason of death or Disability, the Option or SAR shall remain exercisable for a period of at least one year following such termination (but not later than the scheduled
expiration of such Option or SAR); and (iii) any termination of the Holder's service for cause will be treated in accordance with the provisions of Section 11.2(b). 

        (b)    Termination for Cause.    If a Holder's service on the Board shall be terminated by the Company during the
Restriction Period with respect to any Restricted Shares, or prior to the exercise of any Option or SAR, or prior to the vesting or complete exercise of any Stock Unit for cause (for these purposes,
cause shall include, but not be limited to, insubordination, dishonesty, incompetence, moral turpitude, other misconduct of any kind, and the refusal to perform his duties and responsibilities for any
reason other than illness or incapacity; provided, however, that if such termination occurs within 12 months after an Approved Transaction or
Control Purchase or Board Change, termination for cause shall mean only a felony conviction for fraud, misappropriation, or embezzlement), then, unless otherwise determined by the Board and provided
in the applicable Agreement, (i) all Options and SARs and all unvested or unexercised Stock Units held by such Holder shall immediately terminate and (ii) such Holder's rights to all
Restricted Shares, Retained Distributions, any unpaid Dividend Equivalents, and any cash awards shall be forfeited immediately. 

        11.3    Nonalienation of Benefits.    Except as set forth herein, no right or benefit under the Plan shall be subject
to anticipation, alienation, sale, assignment, hypothecation, pledge, exchange, transfer, encumbrance, or charge, and any attempt to anticipate, alienate, sell, assign, hypothecate, pledge, exchange,
transfer, encumber or charge the same shall be void. No right or benefit hereunder shall in any manner be liable for or subject to the debts, contracts, liabilities, or torts of the Person entitled to
such benefits. 

12

 

        11.4    Written Agreement.    Each grant of an Option under the Plan shall be evidenced by a stock option agreement;
each SAR shall be evidenced by a stock appreciation rights agreement; each award of Restricted Shares shall be evidenced by a restricted shares agreement; and each award of Stock Units shall be
evidenced by a stock units agreement, each in such form and containing such terms and provisions not inconsistent with the provisions of the Plan as the Board from time to time shall approve;  provided,
however, that if more than one type of Award is made to the same Holder, such Awards may be
evidenced by a single Agreement with such Holder. Each grantee of an Option, SAR, Restricted Shares, or Stock Units shall be notified promptly of such grant, and a written Agreement shall be promptly
executed and delivered by the Company. Any such written Agreement may contain (but shall not be required to contain) such provisions as the Board deems appropriate (i) to insure that the
penalty provisions of Section 4999 of the Code will not apply to any stock or cash received by the Holder from the Company or (ii) to provide cash payments to the Holder to mitigate the
impact of such penalty provisions upon the Holder. Any such Agreement may be supplemented or amended from time to time as approved by the Board as contemplated by Section 11.6(b). 

        11.5    Designation of Beneficiaries.    Each Person who shall be granted an Award under the Plan may designate a
beneficiary or beneficiaries and may change such designation from time to time by filing a written designation of beneficiary or beneficiaries with the Board on a form to be prescribed by it, provided
that no such designation shall be effective unless so filed prior to the death of such Person. 

        11.6    Termination and Amendment.    

        (a)    General.    Unless the Plan shall theretofore have been terminated as hereinafter provided, no Awards may be
made under the Plan on or after the tenth anniversary of the Effective Date. The Plan may be terminated at any time prior to the tenth anniversary of the Effective Date and may, from time to time, be
suspended or discontinued or modified or amended if such action is deemed advisable by the Board. 

        (b)    Modification.    No termination, modification or amendment of the Plan may, without the consent of the Person
to whom any Award shall theretofore have been granted, adversely affect the rights of such Person with respect to such Award. No modification, extension, renewal, or other change in any Award granted
under the Plan shall be made after the grant of such Award, unless the same is consistent with the provisions of the Plan. With the consent of the Holder and subject to the terms and conditions of the
Plan (including Section 11.6(a)), the Board may amend outstanding Agreements with any Holder, including, without limitation, any amendment which would (i) accelerate the time or times at
which the Award may be exercised and/or (ii) extend the scheduled expiration date of the Award. Without limiting the generality of the foregoing, the Board may, but solely with the Holder's
consent unless otherwise provided in the Agreement, agree to cancel any Award under the Plan and grant a new Award in substitution therefor, provided that the Award so substituted shall satisfy all of
the requirements of the
Plan as of the date such new Award is made. Nothing contained in the foregoing provisions of this Section 11.6(b) shall be construed to prevent the Board from providing in any Agreement that
the rights of the Holder with respect to the Award evidenced thereby shall be subject to such rules and regulations as the Board may, subject to the express provisions of the Plan, adopt from time to
time or impair the enforceability of any such provision. 

        11.7    Government and Other Regulations.    The obligation of the Company with respect to Awards shall be subject to
all applicable laws, rules, and regulations and such approvals by any governmental agencies as may be required, including, without limitation, the effectiveness of any registration statement required
under the Securities Act of 1933, and the rules and regulations of any securities exchange or association on which the Common Stock may be listed or quoted. For so long as any series of Common Stock
are registered under the Exchange Act, the Company shall use its reasonable efforts to comply with any legal requirements (i) to maintain a registration statement in effect under the 

13

 

Securities
Act of 1933 with respect to all shares of the applicable series of Common Stock that may be issued to Holders under the Plan and (ii) to file in a timely manner all reports required
to be filed by it under the Exchange Act. 

        11.8    Withholding.    The Company's obligation to deliver shares of Common Stock or pay cash in respect of any Award
under the Plan shall be subject to applicable federal, state, and local tax withholding requirements. Federal, state, and local withholding tax due at the time of an Award, upon the exercise of any
Option or SAR or upon the vesting of, or expiration of restrictions with respect to, Restricted Shares or Stock Units, as appropriate, may, in the discretion of the Board, be paid in shares of the
applicable series of Common Stock already owned by the Holder or through the withholding of shares otherwise issuable to such Holder, upon such terms and conditions (including, without limitation, the
conditions referenced in Section 6.5) as the Board shall determine. If the Holder shall fail to pay, or make arrangements satisfactory to the Board for the payment to the Company of, all such
federal, state and local taxes required to be withheld by the Company, then the Company shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to
such Holder an amount equal to any federal, state, or local taxes of any kind required to be withheld by the Company with respect to such Award. 

        11.9    Nonexclusivity of the Plan.    The adoption of the Plan by the Board shall not be construed as creating any
limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of stock options and the awarding of stock and
cash otherwise than under the Plan, and such arrangements may be either generally applicable or applicable only in specific cases. 

        11.10    Exclusion from Other Plans.    By acceptance of an Award, unless otherwise provided in the applicable
Agreement, each Holder shall be deemed to have agreed that such Award is special incentive compensation that will not be taken into account, in any manner, as compensation or bonus in determining the
amount of any payment under any pension, retirement or other benefit plan,
program, or policy of the Company or any Subsidiary of the Company. In addition, each beneficiary of a deceased Holder shall be deemed to have agreed that such Award will not affect the amount of any
life insurance coverage, if any, provided by the Company on the life of the Holder which is payable to such beneficiary under any life insurance plan of the Company or any Subsidiary of the Company.
Director Compensation elected to be received in the form of stock in lieu of cash shall be treated as regular compensation for purposes of any Director retirement or life insurance plan. 

        11.11    Unfunded Plan.    Neither the Company nor any Subsidiary of the Company shall be required to segregate any
cash or any shares of Common Stock which may at any time be represented by Awards, and the Plan shall constitute an "unfunded" plan of the Company. Except as provided in Article VIII with
respect to Awards of Restricted Shares and except as expressly set forth in an Agreement, no Holder shall have voting or other rights with respect to the shares of Common Stock covered by an Award
prior to the delivery of such shares. Neither the Company nor any Subsidiary of the Company shall, by any provisions of the Plan, be deemed to be a trustee of any shares of Common Stock or any other
property, and the liabilities of the Company to any Holder pursuant to the Plan shall be those of a debtor pursuant to such contract obligations as are created by or pursuant to the Plan, and shall be
limited to those of a general creditor of the Company. In its sole discretion, the Board may authorize the creation of trusts or other arrangements to meet the obligations of the Company under the
Plan, provided, however, that the existence of such trusts or other arrangements is consistent with the unfunded status of the Plan. 

        11.12    Governing Law.    The Plan shall be governed by, and construed in accordance with, the laws of the State of
Delaware. 

        11.13    Accounts.    The delivery of any shares of Common Stock and the payment of any amount in respect of an Award
shall be for the account of the Company or the applicable Subsidiary of the 

14

 

Company,
as the case may be, and any such delivery or payment shall not be made until the recipient shall have paid or made satisfactory arrangements for the payment of any applicable withholding
taxes as provided in Section 11.8. 

        11.14    Legends.    Each certificate evidencing shares of Common Stock subject to an Award shall bear such legends as
the Board deems necessary or appropriate to reflect or refer to any terms, conditions, or restrictions of the Award applicable to such shares, including, without limitation, any to the effect that the
shares represented thereby may not be disposed of unless the Company has received an opinion of counsel, acceptable to the Company, that such disposition will not violate any federal or state
securities laws. 

        11.15    Company's Rights.    The grant of Awards pursuant to the Plan shall not affect in any way the right or power
of the Company to make reclassifications, reorganizations, or other changes of or to its
capital or business structure or to merge, consolidate, liquidate, sell, or otherwise dispose of all or any part of its business or assets. 

        11.16    Section 409A.    Notwithstanding anything in the Plan to the contrary, if any Plan provision or Award
under the Plan would result in the imposition of an additional tax under Code Section 409A and related regulations and United States Department of the Treasury pronouncements
("Section 409A"), that Plan provision or Award will be reformed to avoid imposition of the applicable tax and no action taken to comply with Section 409A shall be deemed to adversely
affect the Holder's rights to an Award. 

15

QuickLinks

Exhibit 10.2

LIBERTY ENTERTAINMENT, INC. 2009 NONEMPLOYEE DIRECTOR INCENTIVE PLAN

ARTICLE I PURPOSE OF PLAN

ARTICLE II DEFINITIONS

ARTICLE III ADMINISTRATION

ARTICLE IV SHARES SUBJECT TO THE PLAN

ARTICLE V ELIGIBILITY

ARTICLE VI STOCK OPTIONS

ARTICLE VII SARS

ARTICLE VIII RESTRICTED SHARES

ARTICLE IX STOCK UNITS

ARTICLE X STOCK AWARDS IN LIEU OF CASH DIRECTOR FEES

ARTICLE XI GENERAL PROVISIONSQuickLinks
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  Exhibit 10.3    
    

 
 

  LIBERTY ENTERTAINMENT, INC.    
    
    TRANSITIONAL STOCK ADJUSTMENT PLAN    
    

 
    ARTICLE I    
    
    PURPOSE AND AMENDMENT OF PLAN    
    

        1.1    Purpose.    The purpose of the Plan is to provide for the supplemental grant of stock options to purchase the
common stock of Liberty Entertainment, Inc. (the "Company"), stock appreciation rights related to the Company's common stock, and restricted shares of the Company's common stock to holders of
certain outstanding options, stock appreciation rights and restricted shares issued under
certain stock-based plans administered by Liberty Media Corporation ("LMC") in connection with adjustments made to outstanding stock incentive awards and restricted shares of LMC Entertainment Common
Stock (as defined below) as a result of the split-off of the Company from LMC. 

 
 

  ARTICLE II    
    
    DEFINITIONS    
    

        2.1    Certain Defined Terms.    For purposes of the Plan, the following terms shall have the meanings below stated. 

        "Approved
Transaction" means any transaction in which the Board (or, if approval of the Board is not required as a matter of law, the stockholders of the Company) shall approve
(i) any consolidation or merger of the Company, or binding share exchange, pursuant to which shares of Common Stock of the Company would be changed or converted into or exchanged for cash,
securities, or other property, other than any such transaction in which the common stockholders of the Company immediately prior to such transaction have the same proportionate ownership of the Common
Stock of, and voting power with respect to, the surviving corporation immediately after such transaction, (ii) any merger, consolidation or binding share exchange to which the Company is a
party as a result of which the 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 Company 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
binding share exchange, (iii) the adoption of any plan or proposal for the liquidation or dissolution of the Company, or (iv) 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 the Company. 

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

        "Board
Change" means, during any period of two consecutive years, individuals who at the beginning of such period constituted the entire Board cease for any reason to constitute a
majority thereof unless the election, or the nomination for election, of each new director was approved by a vote of at least two-thirds of the directors then still in office who were
directors at the beginning of the period. 

        "Code"
means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute or statutes thereto. Reference to any specific Code section shall include any
successor section. 

        "Committee"
means the committee of the Board appointed to administer this Plan pursuant to Article VIII. 

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

        "Company"
means Liberty Entertainment, Inc., a Delaware corporation, and any successor thereto. 

 

        "Control
Purchase" means any transaction (or series of related transactions) in which (1) 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 Subsidiary of the Company or any employee benefit plan sponsored by the Company or any Subsidiary of the Company) shall purchase
any Common Stock of the Company (or securities convertible into Common Stock of the Company) for cash, securities or any other consideration pursuant to a tender offer or exchange offer, without the
prior consent of the Board, or (2) any person (as such term is so defined), corporation or other entity (other than the Company, any Subsidiary of the Company, any employee benefit plan
sponsored by the Company or any Subsidiary of the Company or any Exempt Person (as defined below)) 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 20% or more 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), other than in a transaction (or series of related transactions) approved by the Board. For purposes of this definition, "Exempt Person" means each
of (a) the Chairman of the Board, the President and each of the directors of the Company as of the Redemption Date, and (b) the respective family members, estates and heirs of each of
the persons referred to in clause (a) above and any trust or other investment vehicle for the primary benefit of any of such persons or their respective family members or heirs. As used with
respect to any person, the term "family member" means the spouse, siblings and lineal descendants of such person. 

        "Exchange
Act" means the Securities Exchange Act of 1934, as amended. 

        "Fair
Market Value" of a share of any series of Common Stock on any day means the last sale price (or, if no last sale price is reported, the average of the high bid and low asked
prices) for a share of such series of Common Stock on such day (or, if such day is not a trading day, on the next preceding trading day) as reported on the consolidated transaction reporting system
for the principal national securities exchange on which shares of such series of Common Stock are listed on such day. If for any day the Fair Market Value of a share of the applicable series of Common
Stock is not determinable by any of the foregoing means, then the Fair Market Value for such day shall be determined in good faith by the Committee on the basis of such quotations and other
considerations as the Committee deems appropriate. 

        "Incentive
Plan" means the Liberty Media Corporation 2007 Incentive Plan, Liberty Media Corporation 2000 Incentive Plan (As Amended and Restated Effective February 22, 2007),
Liberty Media Corporation 2002 Nonemployee Director Incentive Plan (As Amended and Restated Effective August 15, 2007), and any other stock option or incentive plan assumed by LMC pursuant to
which any Participant holds an outstanding LMC Award as of the Redemption Date. Depending on the context, "Incentive Plan" shall mean all of such plans or a particular one of such plans. 

        "LMC
Award" means (1) an unexercised and unexpired option to purchase LMC Entertainment Common Stock, (2) an LMC Entertainment SAR or (3) an unvested award of
restricted shares of LMC Entertainment Common Stock. 

        "LMC
Corporate Holder" means an individual who, as of Redemption Date, is (1) an LMC employee, (2) a member of the board of directors of LMC or (3) a holder of
unvested restricted shares of LMC Entertainment Common Stock. The Committee may, in its discretion, determine that (i) an individual who does not meet any of the foregoing criteria should be
classified as an LMC Corporate Holder or (ii) an individual who otherwise would qualify as an LMC Corporate Holder, should not be classified as such. 

        "LMC
Entertainment Common Stock" means each or any (as the context may require) series of Liberty Entertainment common stock, par value $.01 per share. 

2

 

        "LMC
Entertainment SAR" means a stock appreciation right with respect to any series of LMC Entertainment Common Stock. 

        "Option"
means an option to purchase Common Stock, granted by the Company to a Participant pursuant to Section 6.1 of the Plan. 

        "Participant"
means a person who is an LMC Corporate Holder and who, as of the Redemption Date, holds an outstanding LMC Award. 

        "Person"
means an individual, corporation, limited liability company, partnership, trust, incorporated or unincorporated association, joint venture or other entity of any kind. 

        "Plan"
means the Liberty Entertainment, Inc. Transitional Stock Adjustment Plan, as set forth herein and as from time to time amended. 

        "Redemption"
means the redemption by LMC of 90% of the shares of each series of LMC Entertainment Common Stock outstanding for 100% of the outstanding shares of Common Stock. 

        "Redemption
Date" means 5:00 p.m., New York City time, on the date on which the Redemption occurs. 

        "Restricted
Stock Award" means an award of restricted shares of Common Stock, granted by the Company to a Participant pursuant to Section 5.1. 

        "SARs"
means stock appreciation rights, awarded pursuant to Section 7.1, with respect to shares of any specified series of Common Stock. 

        "Stock
Incentives" means collectively the Restricted Stock Awards, SARs and Options. 

        "Subsidiary"
of a Person means any present or future subsidiary (as defined in Section 424(f) of the Code) of such Person or any business entity in which such Person owns,
directly or indirectly, 50% or more of the voting, capital or profits interests. An entity shall be deemed a subsidiary of a Person for purposes of this definition only for such periods as the
requisite ownership or control relationship is maintained. 

 
 

  ARTICLE III    
    
    RESERVATION OF SHARES    
    

        The aggregate number of shares of Common Stock which may be issued under this Plan shall not exceed
[                        ] shares, subject to adjustment as hereinafter provided. Any part of such
[                        ] shares may be issued pursuant to Restricted
Stock Awards. The shares of Common Stock which may be granted pursuant to Stock Incentives will consist of either authorized but unissued shares of Common Stock or shares of Common Stock which have
been issued and reacquired by the Company, including shares purchased in the open market. The total number of shares authorized under this Plan shall be subject to increase or decrease in order to
give effect to the adjustment provision of Section 10.3 and to give effect to any amendment adopted as provided in Section 10.1. 

 
 

  ARTICLE IV    
    
    PARTICIPATION IN PLAN    
    

        4.1    Eligibility to Receive Stock Incentives.    Stock Incentives under this Plan may be granted only to persons who
are Participants. 

        4.2    Participation Not Guarantee of Employment.    Nothing in this Plan or in the instrument evidencing the grant of
a Stock Incentive shall in any manner be construed to limit in any way the right of the Company, LMC or any of their respective Subsidiaries to terminate a Participant's employment 

3

 

at
any time, without regard to the effect of such termination on any rights such Participant would otherwise have under the Plan or any Incentive Plan, or give any right to such a Participant to
remain employed by the Company, LMC or any of their respective Subsidiaries in any particular position or at any particular rate of compensation. 

 
 

  ARTICLE V    
    
    STOCK AWARDS    
    

        5.1    Grant of Restricted Stock Awards.    

        (a)    Grant.    Restricted Stock Award(s) shall be granted to each Participant who, as of the Redemption Date, holds
an outstanding LMC Award(s) consisting of unvested restricted shares of LMC Entertainment Common Stock. 

        (b)    Award of Shares.    Each Restricted Stock Award shall be for the number and series of shares of Common Stock
that such holder will receive in exchange for such holder's existing restricted shares of LMC Entertainment Common Stock as a result of the application of the redemption ratio in the Redemption;
provided, however, no fractional shares of Common Stock shall be awarded under a Restricted Stock Award, and, if the foregoing adjustment results in any fractional shares, LMC will deliver cash in
lieu of such fractional share interest to the applicable Participant in the same manner as cash in lieu of fractional share interests is paid to record holders of LMC Entertainment Common Stock in the
Redemption. Each Restricted Stock Award and the restricted shares of Common Stock issued thereunder shall continue to be subject to all the terms and conditions of the applicable Incentive Plan and
associated instrument under which the corresponding award of restricted shares of LMC Entertainment Common Stock was made and any such terms, conditions and restrictions as may be determined to be
appropriate by the Committee. 

        (c)    Lapse of Restrictions.    The restrictions on each Restricted Stock Award shall lapse in accordance with the
terms and conditions of the applicable Incentive Plan and associated instrument under which the corresponding award of restricted shares of LMC Entertainment Common Stock was made; provided, however,
that a Participant's employment or service with the Company, LMC, any of their respective Subsidiaries or any other Person that was a Subsidiary of LMC until the capital stock of such Person was
distributed to the holders of one or more series of LMC common stock shall be deemed to be employment or service with the Company and LMC for all purposes under a Restricted Stock Award. 

        (d)    Award Documentation.    Restricted Stock Awards shall be evidenced in such form as the Committee shall approve
and contain such terms and conditions as shall be contained therein or incorporated by way of reference to the Incentive Plan or any associated instrument governing the corresponding award
of restricted shares of LMC Entertainment Common Stock, which need not be the same for all Restricted Stock Awards. 

        (e)    Rights with Respect to Shares.    No Participant who is granted a Restricted Stock Award shall have any rights
as a stockholder by virtue of such grant until shares are actually issued or delivered to the Participant. 

 
 

  ARTICLE VI    
    
    OPTIONS    
    

        6.1    Grant of Options.    

        (a)    Grant.    Option(s) shall be granted to each Participant who, as of the Redemption Date, holds an outstanding
LMC Award(s) consisting of an option to purchase shares of LMC Entertainment Common Stock. Except as otherwise provided in this Plan, each Option shall continue to be subject to 

4

 

all
the terms and conditions of the applicable Incentive Plan and associated instrument under which the corresponding option to purchase LMC Entertainment Common Stock was made and any such terms,
conditions and restrictions as may be determined to be appropriate by the Committee. 

        (b)    Option Shares.    Each Option shall be for the number and series of shares of Common Stock that a Participant
would have received in the Redemption if the applicable option for LMC Entertainment Common Stock had been exercised immediately prior to the Redemption Date; provided, however, no fractional shares
of Common Stock shall be awarded under an Option, and, if the conversion of an option to purchase shares of LMC Entertainment Common Stock into an Option results in any fractional shares, the number
of shares of Common Stock to be exercisable under an Option shall be rounded up to the nearest whole number of shares. 

        (c)    Option Price.    The purchase price per share of Common Stock under each Option shall be established by the
Committee. The Option price shall be subject to adjustment in accordance with the provisions of Section 10.3 hereof. 

        (d)    Option Documentation.    Options shall be evidenced in such form as the Committee shall approve and contain
such terms and conditions as shall be contained therein or incorporated by way of reference to the Incentive Plan or any associated instrument governing the corresponding option to purchase LMC
Entertainment Common Stock, which need not be the same for all Options. 

        6.2    Exercise and/or Termination of Options.    

        (a)    Terms of Option.    Options granted under this Plan may be exercised at the same time and in the same manner as
the corresponding option to purchase LMC Entertainment Common Stock. Options granted under this Plan shall expire at the same time and in the same manner as the corresponding option to purchase LMC
Entertainment Common Stock, as provided in the applicable Incentive Plan and any associated instrument governing such option to purchase LMC Entertainment Common Stock; provided, however, that a
Participant's employment or service with the Company, LMC, any of their respective Subsidiaries or any other Person that was a Subsidiary of LMC until the capital stock of such Person was distributed
to the holders of one or more series of LMC common stock shall be deemed to be employment or service with the Company and LMC for all purposes under an Option. 

        (b)    Payment on Exercise.    No shares of Common Stock shall be issued on the exercise of an Option unless paid for
in full at the time of purchase. Payment for shares of Common Stock purchased upon the exercise of an Option and any amounts required under Section 10.4 shall be determined by the Committee and
may consist of (i) cash, (ii) check, (iii) promissory note (subject to applicable law), (iv) whole shares of any series of Common Stock, (v) the withholding of
shares of the applicable series of Common Stock issuable upon such exercise of the Option, (vi) the delivery, together with a properly executed exercise notice, of irrevocable instructions to a
broker to deliver promptly to the Company the amount of sale or loan proceeds required to pay the purchase price, or (vii) any combination of the foregoing methods of payment, or such other
consideration and method of payment as may be permitted for the issuance of shares under the Delaware General Corporation Law. The permitted method or methods of payment of the amounts payable upon
exercise of an Option, if other than in cash, shall be set forth in the applicable Option agreement and may be subject to such conditions as the Committee deems appropriate. 

        (c)    Value of Shares.    Unless otherwise determined by the Committee and provided in the applicable Option
agreement, shares of any series of Common Stock delivered in payment of all or any part of the amounts payable in connection with the exercise of an Option, and shares of any series of Common Stock
withheld for such payment, shall be valued for such purpose at their Fair Market Value as of the exercise date. 

5

 

        (d)    Issuance of Shares.    The Company shall effect the transfer of the shares of Common Stock purchased under the
Option as soon as practicable after the exercise thereof and payment in full of the purchase price therefor and of any amounts required by Section 10.4, and within a reasonable time thereafter,
such transfer shall be evidenced on the books of the Company. Unless otherwise determined by the Committee and provided in the applicable Option agreement, (i) no Participant or other person
exercising an Option shall have any of the rights of a stockholder of the Company with respect to shares of Common Stock subject to an Option granted under the Plan until due exercise and full payment
has been made, and (ii) no adjustment shall be made for cash dividends or other rights for which the record date is prior to the date of such due exercise and full payment. 

        (e)    Exercise.    For purposes of this Article VI, the date of exercise of an Option shall mean the date on
which the Company shall have received notice from the holder of the Option of the exercise of such Option (unless otherwise determined by the Committee and provided in the applicable Option
agreement). 

 
 

  ARTICLE VII    
    
    SARS    
    

        7.1    Grant of SARs.    

        (a)    Grant.    SARs shall be granted to each Participant who, as of the Redemption Date, holds an outstanding LMC
Award(s) consisting of an LMC Entertainment SAR. Except as otherwise provided in this Plan, each SAR shall continue to be subject to all the terms and conditions of the applicable Incentive Plan and
associated instrument under which the LMC Entertainment SAR was made and any such terms, conditions and restrictions as may be determined to be appropriate by the Committee. 

        (b)    SAR Shares.    Each SAR shall be for the number and series of shares of Common Stock that a Participant would
have received in the Redemption if the shares of LMC Entertainment Common
Stock subject to such LMC Entertainment SAR had been outstanding on the Redemption Date; provided, however, no SAR shall be granted that relates to fractional shares of Common Stock, and, if the
conversion of an LMC Entertainment SAR into a SAR results in any fractional shares, the number of shares of Common Stock to which the SAR relates shall be rounded up to the nearest whole number of
shares. 

        (c)    Base Price.    The base price per share of Common Stock under each SAR shall be established by the Committee.
The base price shall be subject to adjustment in accordance with the provisions of Section 10.3 hereof. 

        (d)    SAR Documentation.    SARs shall be evidenced in such form as the Committee shall approve and contain such
terms and conditions as shall be contained therein or incorporated by way of reference to the Incentive Plan or any associated instrument governing the corresponding LMC Entertainment SAR, which need
not be the same for all SARs. 

        7.2    Exercise and/or Termination of SARs.    

        (a)    Terms of SARs.    SARs granted under this Plan may be exercised at the same time and in the same manner as the
corresponding LMC Entertainment SAR. SARs granted under this Plan shall expire at the same time and in the same manner as the LMC Entertainment SAR, as provided in the applicable Incentive Plan and
any associated instrument governing the LMC Entertainment SAR; provided, however, that a Participant's employment or service with the Company, LMC, any of their respective Subsidiaries or any other
Person that was a Subsidiary of LMC until the capital stock of such Person was distributed to the holders of one or more series of LMC common stock shall be deemed to be employment or service with the
Company and LMC for all purposes under a SAR. 

6

 

        (b)    Consideration.    The consideration to be received upon the exercise of a SAR shall be paid in cash, shares of
the applicable series of Common Stock with respect to which the SAR was granted (valued at Fair Market Value on the date of exercise of such SAR), a combination of cash and such shares of the
applicable series of Common Stock or such other consideration, in each case, as provided in the SAR agreement. No fractional shares of Common Stock shall be issuable upon exercise of a SAR, and unless
otherwise provided in the applicable SAR agreement, the holder will receive cash in lieu of fractional shares. 

        (c)    Exercise.    For purposes of this Article VII, the date of exercise of a SAR shall mean the date on
which the Company shall have received notice from the holder of the SAR of the exercise of such SAR (unless otherwise determined by the Committee and provided in the applicable SAR agreement). 

 
 

  ARTICLE VIII    
    
    ADMINISTRATION OF PLAN    
    

        8.1    The Committee.    This Plan shall be administered solely by the Compensation Committee of the Board or such
other committee of the Board as the Board shall designate to administer the Plan. A majority of the Committee shall constitute a quorum thereof and the actions of a majority of the Committee at a
meeting at which a quorum is present, or actions unanimously approved in writing by all members of the Committee, shall be the actions of the Committee. Vacancies occurring on the Committee shall be
filled by the Board. The Committee shall have full and final authority to interpret this Plan and any instruments evidencing Stock Incentives granted hereunder, to prescribe, amend and rescind rules
and regulations, if any, relating to this Plan and to make all determinations necessary or advisable for the administration of this Plan. The Committee's determination in all matters referred to
herein shall be conclusive and binding for all purposes and upon all persons including, but without limitation, the Company, LMC, the shareholders of the Company, the shareholders of LMC, the
Committee and each of the members thereof, and the Participants, and their respective successors in interest. The Committee may delegate any of its rights, powers and duties to any one or more of its
members, or to any other person, by written action as provided herein, acknowledged in writing by the delegate or delegates, except that the Committee may not delegate to any person the authority to
grant Stock Incentives to, or take other action with respect to, Participants who are subject to Section 16 of the Exchange Act. Such delegation may include, without limitation, the power to
execute any documents on behalf of the Committee. 

        8.2    Liability of Committee.    No member of the Committee shall be liable for any action or determination made or
taken by him or the Committee in good faith with respect to the Plan. The Committee shall have the power to engage outside consultants, auditors or other professionals to assist in the fulfillment of
the Committee's duties under this Plan at the Company's expense. 

        8.3    Determinations of the Committee.    The Committee may, in its sole discretion, waive any provisions of any
Stock Incentive, provided such waiver is not inconsistent with the terms of the applicable Incentive Plan, any associated instrument or this Plan as then in effect. 

 
 

  ARTICLE IX    
    
    AMENDMENT AND TERMINATION OF PLAN    
    

        9.1    Amendment, Modification, Suspension or Termination.    The Board may from time to time amend, modify, suspend
or terminate the Plan for the purpose of meeting or addressing any changes in legal requirements or for any other purpose permitted by law except that (i) subject to Section 10.6, no
amendment or alteration that would impair the rights of any Participant under any Stock Incentive awarded to such Participant shall be made without such Participant's consent and (ii) no
amendment or alteration shall be effective prior to approval by the Company's shareholders to the extent such 

7

 

approval
is then required pursuant to applicable legal requirements or the applicable requirements of the securities exchange on which the Company's Common Stock is listed. With the consent of the
Participant, or as otherwise permitted under Section 10.6, and subject to the terms and conditions of the Plan, the Committee may amend outstanding Stock Incentive agreements with any
Participant, including any amendment which would (i) accelerate the time or times at which the Stock Incentive may be exercised and/or (ii) extend the scheduled expiration date of the
Stock Incentive. 

        9.2    Termination.    The Board may at any time terminate this Plan as of any date specified in a resolution adopted
by the Board. If not earlier terminated, this Plan shall terminate on the last date that any Option or SAR granted hereunder may be exercised or any restriction applicable to a Restricted Stock Award
granted hereunder has lapsed, whichever occurs later. 

 
 

  ARTICLE X    
    
    MISCELLANEOUS PROVISIONS    
    

        10.1    Exclusion from Pension and Profit-Sharing Computation.    By acceptance of a Stock Incentive, unless otherwise
provided in the applicable Stock Incentive agreement, each Participant shall be deemed to have agreed that such Stock Incentive is special incentive compensation that will not be taken into account,
in any manner, as salary, compensation or bonus in determining the amount of any payment under any pension, retirement or other employee benefit plan, program or policy of the Company or any
Subsidiary of the Company. In addition, each beneficiary of a deceased Participant shall be deemed to have agreed that such Stock Incentive will not affect the amount of any life insurance coverage,
if any, provided by the Company on the life of the Participant which is payable to such beneficiary under any life insurance plan covering employees of the Company or any Subsidiary of the Company. 

        10.2    Government and Other Regulations.    The obligation of the Company with respect to Stock Incentives shall be
subject to all applicable laws, rules and regulations and such approvals by any governmental agencies as may be required, including the effectiveness of any registration statement required under the
Securities Act of 1933, and the rules and regulations of any securities exchange or association on which the Common Stock may be listed or quoted. For so long as any series of Common Stock is
registered under the Exchange Act, the Company shall use its reasonable efforts to comply with any legal requirements (i) to maintain a registration statement in effect under the Securities Act
of 1933 with respect to all shares of the applicable series of Common Stock that may be issued to Participants under the Plan and (ii) to file in a timely manner all reports required to be
filed by it under the Exchange Act. 

        10.3    Adjustments.    

        (a)   If
the Company subdivides its outstanding shares of any series of Common Stock into a greater number of shares of such series of Common Stock (by stock dividend, stock
split, reclassification, or otherwise) or combines its outstanding shares of any series of Common Stock into a smaller number of shares of such series of Common Stock (by reverse stock split,
reclassification, or otherwise) or if the Committee determines that any stock dividend, extraordinary cash dividend, reclassification, recapitalization, reorganization, split-up,
spin-off, combination, exchange of shares, warrants or rights offering to purchase such series of Common Stock or other similar corporate event (including mergers or consolidations other
than those which constitute Approved Transactions, adjustments with respect to which shall be governed by Section 10.3(b)) affects any series of Common Stock so that an adjustment is required
to preserve the benefits or potential benefits intended to be made available under the Plan, then the Committee, in such manner as the Committee, in its sole discretion, deems equitable and
appropriate, shall make such adjustments to any or all of (i) the number and kind of shares of stock subject to outstanding Stock Incentives, and (ii) the purchase or exercise price and
the relevant appreciation base with respect to any of the foregoing, provided, 

8

 

however,
that the number of shares subject to any Stock Incentive shall always be a whole number. Notwithstanding the foregoing, if all shares of any series of Common Stock are redeemed, then each
outstanding Stock Incentive shall be adjusted to substitute for the shares of such series of Common Stock subject thereto the kind and amount of cash, securities or other assets issued or paid in the
redemption of the equivalent number of shares of such series of Common Stock and otherwise the terms of such Stock Incentive, including, in the case of Options or similar rights, the aggregate
exercise
price, and, in case of SARs, the aggregate base price shall remain constant before and after the substitution (unless otherwise determined by the Committee and provided in the applicable Stock
Incentive agreement). The Committee may, if deemed appropriate, provide for a cash payment of a Stock Incentive to a Participant in connection with any adjustment made pursuant to this
Section 10.3(a). 

        (b)    Approved Transactions; Board Change; Control Purchase.    In the event of any Approved Transaction, Board
Change or Control Purchase, notwithstanding any contrary waiting period, installment period, vesting schedule or restriction period in any Stock Incentive agreement or in the Plan, unless the
applicable Stock Incentive agreement provides otherwise: (i) in the case of an Option or SAR, each such outstanding Option or SAR granted under the Plan shall become exercisable in full in
respect of the aggregate number of shares covered thereby; and (ii) in the case of Common Stock awarded under a Restricted Stock Award, any restriction period applicable to each such Common
Stock shall be deemed to have expired and all such Common Stock shall become vested. Notwithstanding the foregoing, unless otherwise provided in the applicable Stock Incentive agreement, the Committee
may, in its discretion, determine that any or all outstanding Stock Incentives of any or all types granted pursuant to the Plan will not vest or become exercisable on an accelerated basis in
connection with an Approved Transaction if effective provision has been made for the taking of such action which, in the opinion of the Committee, is equitable and appropriate to substitute a new
Stock Incentive or to assume such Stock Incentive and to make such new or assumed Stock Incentive, as nearly as may be practicable, equivalent to the old Stock Incentive (before giving effect to any
acceleration of the vesting or exercisability thereof), taking into account, to the extent applicable, the kind and amount of securities, cash or other assets into or for which the applicable series
of Common Stock may be changed, converted or exchanged in connection with the Approved Transaction. 

        10.4    Withholding of Taxes.    The Company's obligation to deliver shares of Common Stock or pay cash in respect of
any Stock Incentives under the Plan shall be subject to applicable federal, state and local tax withholding requirements. Federal, state and local withholding tax due upon the exercise of any Option
or SAR or upon the vesting of, or expiration of restrictions with respect to Common Stock granted under Restricted Stock Awards, may, in the discretion of the Committee, be paid in shares of the
applicable series of Common Stock already owned by the Participant or through the withholding of shares otherwise issuable to such Participant, upon such terms and conditions (including the conditions
referenced in Section 6.2) as the Committee shall determine. If the Participant shall fail to pay, or make arrangements satisfactory to the Committee for the payment of, all such federal, state
and local taxes required to be withheld with respect to a Stock Incentive, then the Company shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due
to such Participant an amount equal to any federal, state or local taxes of any kind required to be withheld with respect to such Stock Incentive. 

        10.5    Restrictions on Benefit.    Notwithstanding any provision of this Plan to the contrary, the provisions of any
Incentive Plan concerning restrictions on benefits (in order to avoid excise taxes on the Participant under Section 4999 of the Code or the disallowance of a deduction to the Company pursuant
to Section 280G of the Code) are specifically incorporated by this reference. 

        10.6    Section 409A.    Notwithstanding any provision in this Plan or the Incentive Plan to the contrary, if
any Plan or Incentive Plan provision or any Stock Incentive thereunder would result in the imposition of an additional tax under Code Section 409A and related regulations and United States 

9

 

Department
of the Treasury pronouncements ("Section 409A"), that Plan or Incentive Plan provision and/or that Stock Incentive will be reformed to avoid imposition of the applicable tax and no
action taken to comply with Section 409A shall be deemed to adversely affect the Participant's right to a Stock Incentive or require the consent of the Participant. 

10

QuickLinks

Exhibit 10.3

LIBERTY ENTERTAINMENT, INC. TRANSITIONAL STOCK ADJUSTMENT PLAN

ARTICLE I PURPOSE AND AMENDMENT OF PLAN

ARTICLE II DEFINITIONS

ARTICLE III RESERVATION OF SHARES

ARTICLE IV PARTICIPATION IN PLAN

ARTICLE V STOCK AWARDS

ARTICLE VI OPTIONS

ARTICLE VII SARS

ARTICLE VIII ADMINISTRATION OF PLAN

ARTICLE IX AMENDMENT AND TERMINATION OF PLAN

ARTICLE X MISCELLANEOUS PROVISIONS

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