Document:

md8kex10_2.htm

 

 

Exhibit 10.2

 

NON-QUALIFIED STOCK OPTION NOTICE

 

Eamonn O’Hare

[INTENTIONALLY OMITTED]

This Option Notice (the “Notice”) dated as of September 16, 2009 (the “Grant Date”) is being sent to you by Virgin Media Inc. (including any successor company, the “Company”).  As you are presently serving as an employee of Virgin Media
Inc. or one of its subsidiary corporations, in recognition of your services and pursuant to the Virgin Media Inc. 2006 Stock Incentive Plan (the “Plan”) the Company has granted you the Option provided for in this Notice (the “Option”). The Option is subject to the terms and conditions set forth in the Plan, which is incorporated herein by reference, and defined terms used but not defined in this Notice shall have the meaning set forth in the Plan.

 

1.  Grant of Option.  The Company hereby irrevocably grants to you, as of the Grant Date, an option to purchase up to 390,000 shares of the Company’s Common Stock at a price of $12.86 per
share (the “Option”).  The Option is not intended to qualify as an incentive stock option under U.S. tax laws and it is not intended to qualify as an approved option under U.K. tax laws.

 

2.  Vesting.  The Option shall vest as follows:

	
i.  
	
As to 78,000 shares if performance conditions established by the Chief Executive Officer of the Company and the Compensation Committee have been met and you have remained continuously employed by the Company from the Grant Date through the first anniversary of the commencement of your full-time employment with the Company (the “Tranche 1 Vesting
Date”);

 

	
ii.  
	
As to 78,000 shares if performance conditions established by the Chief Executive Officer of the Company and the Compensation Committee have been met and you have remained continuously employed by the Company from the Grant Date through the second anniversary of the commencement of your full-time employment with the Company (the “Tranche 2 Vesting
Date”);

	
iii.  
	
As to 78,000 shares if performance conditions established by the Chief Executive Officer of the Company and the Compensation Committee have been met and you have remained continuously employed by the Company from the Grant Date through the third anniversary of the commencement of your full-time employment with the Company (the “Tranche 3 Vesting
Date”);

	
iv.  
	
As to 78,000 shares if performance conditions established by the Chief Executive Officer of the Company and the Compensation Committee have been met and you have remained continuously employed by the Company from the date Grant Date through the fourth anniversary of the commencement of your full-time employment with the Company (the “Tranche 4 Vesting
Date”); and

	
v.  
	
As to 78,000 shares if performance conditions established by the Chief Executive Officer of the Company and the Compensation Committee have been met and you have remained continuously employed by the Company from the Grant Date through the fifth anniversary of the commencement of your full-time employment with the Company (the “Tranche 5 Vesting
Date” and, together with the Tranche 1 Vesting Date, the Tranche 2 Vesting Date, the Tranche 3 Vesting Date, the Tranche 4 Vesting Date, the “Vesting Dates”).

The Option shall vest on the applicable Vesting Date based on the satisfaction of the relevant performance conditions for the applicable tranche, and the Option shall be forfeited if the Compensation Committee determines that such performance conditions have not been met.

 

In no event shall the date of such determination occur later than the end of the fiscal year immediately following the fiscal year to which the performance conditions relate. The date of determination is expected to occur by April 30 of each year following the Vesting Date, but extenuating or other circumstances may apply which may result
in an extended date.

3.  Acceleration Event.  In the event you are subject to a termination of employment by the Company without Cause or you terminate
your employment for Good Reason in either case within twelve (12) months following an Acceleration Event, the Option shall vest and become exercisable as to all of the shares subject to the Option.  For purposes of this Section 3, Good Reason shall mean a termination of your employment by you following the occurrence of any of the following events without your consent: (i) a material breach by the Company of any of the covenants in the employment agreement between you and Virgin Media Limited dated
as of September 16, 2009 (the “Employment Agreement”), (ii) any material reduction in your base salary under Section 7.1 of the Employment Agreement, or (iii) any material and adverse change in your position, title or status or any change in your job duties, authority or responsibilities to those of lesser status.  You shall give the Company ten (10) days notice of your intention to terminate your employment for Good Reason (as defined in (i) through (iii) above) has occurred, and such notice
shall describe the facts and circumstances in support of such claim in reasonable detail.  The Company shall have ten (10) days thereafter to cure such facts and circumstances if possible.

4.  Exercise Period.   The Option shall be exercisable as to any or all the shares as to which the option has become exercisable for a period of 10 years from the date of grant. 
Notwithstanding anything in Section 3 to the contrary, this Option shall stop vesting immediately upon the termination of your employment and your right to exercise the option, to the extent vested, shall terminate on the earlier of the following dates: (a) three months after your termination other than for Cause; (b) one year after your termination resulting from your retirement, disability or death; (c) the date on which your employment is terminated for Cause; or (d) September 15, 2019.

 

5.  Condition to Exercise.  The Option may not be exercised in any circumstances unless and until the Company is satisfied that, other than as provided for in Section 4: (a) you are at the
time of exercise an employee of the Company, a Subsidiary Company, Parent Company or Affiliated Entity; and (b) you have remained continuously so employed since the Grant Date.

 

6. Manner of Exercise.  The Option may be exercised by delivery to the Company of a written notice signed by the person entitled to exercise
the Option, specifying the number of shares which such person wishes to purchase, together with a certified bank cheque or cash (or such other manner of payment as permitted by the Plan) for the aggregate option price for that number of shares and any required withholding (including a payment sufficient to indemnify the Company or any subsidiary of the Company in full against any and all liability to account for any tax, employee’s National Insurance contributions, or duty payable and arising by reason
of the exercise of the Option).

 

7.  Transferability.  Neither the Option nor any interest in the Option may be transferred other than by will or the laws of descent or distribution.

	  	
VIRGIN MEDIA INC.

 

 

 

 

	  	
By:
	 /s/ Neil Berkett
	  	
Name:
	
Neil Berkett

	  	
Title:
	
Chief Executive Officermd8kex10_3.htm

 

 

Exhibit 10.3

VIRGIN MEDIA INC.

RESTRICTED STOCK AGREEMENT

RESTRICTED STOCK AGREEMENT, dated as of September 16, 2009 (the “Grant Date”), between Virgin Media Inc., a Delaware corporation (the “Company”), and Eamonn O’Hare (the “Executive”).

WHEREAS, the Company wishes to grant to the Executive, and the Executive wishes to accept from the Company, shares of common stock of the Company, par value $0.01 per share (the “Restricted Stock”), to be granted pursuant to the Virgin Media Inc. 2006 Stock Incentive Plan.

NOW, THEREFORE, the parties hereto agree as follows:

	
1.
	
Grant of Restricted Stock.

The Company hereby grants to the Executive, and the Executive hereby accepts from the Company, 205,000 shares of Restricted Stock on the terms and conditions set forth in this Agreement. This Agreement is also subject to the terms and conditions set forth in the Plan. Capitalized terms used but not defined herein shall have the meanings set
forth in the Plan.

	
2.
	
Rights of Executive.

Except as otherwise provided in this Agreement, the Executive shall be entitled, at all times on and after the date that the shares of Restricted Stock are issued, to exercise all the rights of a stockholder with respect to the shares of Restricted Stock (whether or not the Transfer Restrictions thereon shall have lapsed), including the right
to vote the shares of Restricted Stock and the right, subject to Section 6 hereof, to receive dividends thereon. Notwithstanding the foregoing, prior to the Lapse Date (as defined In Section 3.1), the Executive shall not be entitled to transfer, sell, pledge, hypothecate, assign, or otherwise dispose of or encumber, the shares of Restricted Stock (collectively, the “Transfer Restrictions”).

3.             Vesting and Lapse of Transfer Restrictions.

	
  
	
3.1
	
The Transfer Restrictions on the Restricted Stock shall lapse and the Restricted Stock granted hereunder shall vest, subject to continued employment, as follows:

	
  
	
(i)
	
as to 105,000 shares on the one year anniversary of the Grant Date;

	
  
	
(ii)
	
as to 50,000 on the second year anniversary of the Grant Date; and

	
  
	
(iii)
	
as to 50,000 on the third year anniversary of the Grant Date.

Each of the foregoing dates is referred to in this Agreement as a “Lapse Date”.

	
  
	
3.2
	
Notwithstanding anything to the contrary provided in the Plan or otherwise, and unless otherwise determined by the Compensation Committee in its sole discretion, the Transfer Restrictions on all of the shares of Restricted Stock granted hereunder and then outstanding shall not lapse and such shares of Restricted Stock shall not vest solely due to the occurrence of an Acceleration Event.

4.             Escrow and Delivery of Shares.

	
  
	
4.1
	
Certificates representing the shares of Restricted Stock shall be issued and held by the Company in escrow and shall remain in the custody of the Company until their delivery to the Executive or the Executive’s estate as set forth in Section 4.2 hereof, subject to the Executive’s delivery of any documents which the Company in its discretion may require as a condition to the issuance of shares and the delivery
of shares to the Executive or the Executive’s estate.

	
  
	
4.2
	
Certificates representing those shares of Restricted Stock in respect of which the Transfer Restrictions have lapsed pursuant to Section 3 hereof shall be delivered to the Executive as soon as practicable following the Lapse Date, provided that the Executive has satisfied the requirements for all applicable Withholding Taxes (as defined in Section 8) with respect to the Restricted Stock.

	
  
	
4.3
	
The Executive may receive, hold, sell, or otherwise dispose of those shares delivered to the Executive pursuant to Section 4.2 free and clear of the Transfer Restrictions, but subject to compliance with all federal and state securities laws.

	
  
	
4.4
	
Prior to the Lapse Date, each stock certificate evidencing shares of Restricted Stock shall bear a legend in substantially the following form:

“This certificate and the shares of stock represented hereby are subject to the terms and conditions (including forfeiture, restrictions against transfer and rights of repurchase, if applicable) contained in the Restricted Stock Agreement (the “Agreement”) between the registered owner of the shares represented
hereby and the Company. Release from such terms and conditions shall be made only in accordance with the provisions of the Agreement, a copy of which is on file in the office of the Secretary of Virgin Media Inc.”

	
  
	
4.5
	
As soon as practicable following the Lapse Date, the Company shall issue new certificates in respect of the shares that have vested as of the Lapse Date which shall not bear the legend set forth in Section 4.4, which certificates shall be delivered in accordance with Section 4.2 hereof.

	
5.
	
Effect of Termination of Employment for any Reason.

Upon termination of the Executive’s employment with the Company and its Affiliates, if applicable, for any reason, the Executive shall forfeit the shares of Restricted Stock which are then subject to the Transfer Restrictions, and, from and after such forfeiture, such shares of Restricted Stock shall cease to be outstanding and the
Executive shall have no rights with respect thereto.

	
6.
	
Voting and Dividend Rights.

All dividends declared and paid by the Company on shares of Restricted Stock shall be deferred until the lapsing of the Transfer Restrictions pursuant to Section 3 hereof (and shall be subject to forfeiture upon forfeiture of the shares of Restricted Stock as to which such deferred dividends relate). The deferred dividends shall be held by
the Company for the account of the Executive. Upon the Lapse Date, the dividends allocable to the shares of Restricted Stock as to which the Transfer Restrictions have lapsed shall be paid to the Executive (without interest). The Company may require that the Executive invest any cash dividends received in additional Restricted Stock which shall be subject to the same conditions and restrictions as the Restricted Stock granted under this Agreement.

	
7.
	
No Right to Continued Employment.

	
  
	
 

Nothing in this Agreement shall be interpreted or construed to confer upon the Executive any right with respect to continuance of employment by the Company or any of its Affiliates, nor shall this Agreement interfere in any way with the right of the Company or any such Affiliate to terminate the Executive’s employment at any time.

 

	
8.
	
Withholding of Taxes.

	
  
	
 

The Executive shall pay to the Company, or the Company and the Executive shall agree on such other arrangements necessary for the Executive to pay, the applicable federal, state and local income taxes required by law to be withheld (the “Withholding Taxes”), if any, upon the vesting and delivery of the shares. The Company shall
have the right to deduct from any payment of cash to the Executive an amount equal to the Withholding Taxes in satisfaction of the Executive’s obligation to pay Withholding Taxes.

 

	
9.
	
Modification of Agreement.

This Agreement may be modified, amended, suspended or terminated, and any terms or conditions may be waived, but only by a written instrument executed by the parties hereto.

	
10.
	
Severability.

Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be affected by such holding and shall continue in full force and effect in accordance with their terms.

	
11.
	
Governing Law.

The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of New York without giving effect to the conflicts of laws principles thereof.

	
12.
	
Successors in Interest; Transfer.

This Agreement shall inure to the benefit of and be binding upon any successor to the Company. This Agreement shall inure to the benefit of the Executive’s heirs, executors, administrators and successors. All obligations imposed upon the Executive and all rights granted to the Company under this Agreement shall be binding upon the Executive’s
heirs, executors, administrators and successors. This Agreement is not assignable by the Executive.

[the remainder of this page is intentionally blank.]

 

 

 

 

 

 

 

	  	
Virgin Media Inc.

	  	  
	  	  
	  	
By:
	
/s/ Bryan H Hall

	  	
Name:
	
Bryan H Hall

	  	
Title:
	
Secretary and General Counsel

	  	  
	  	  
	
ACCEPTED AND AGREED
	  
	  	  
	  
	
By:
	
/s/ Eamonn O’Hare
	  
	
Name:
	
Eamonn O’Hare

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