Document:

Exhibit 10.6

 

[Virgin
Media Inc. Letterhead]

 

June 16, 2010

 

Mr. James F.
Mooney

Chairman

Virgin Media Inc.

909 Third Avenue, Suite 2863

New York, New York
10022

 

Dear Mr. Mooney:

 

The purpose of this
letter is to confirm your level of compensation as non-executive Chairman for
the period commencing January 1, 2011. 
The Board has determined that you should be paid a fixed salary of
$500,000 per annum and should receive the same annual grant of 62,500 options
awarded to all directors.  You will
receive a pro rata option award for the period January through June 2011,
which will be awarded at the same time as the Compensation Committee approves
LTIP and other awards in January 2011. 
From June 2011, your options award schedule will be the same as
applicable to other directors.  
Consistent with normal practice for non-executive chairmen, you will not
have an employment contract (except as indicated below) and will serve at the
pleasure of the Board.  Subject to the
non-competition provisions described below, you will be free to accept other
employment.   Your compensation will be
reviewed on an annual basis.  The Company
will continue to pay for health insurance cover for you and your family,
subject to the Company’s right to revise the New York office policy along
conventional lines should it see fit to do so.

 

While this level of
compensation is less than you sought, I think that you are aware that it
is materially higher than would be customary for a non-executive chairman in
either the United Kingdom (where the demands of the role and compensation
levels are higher) or the United States. 
I would be pleased to share with you the data that we collected on this
subject.   The compensation level
reflects the significance that the Board places on your continued part-time
role with the Company, as well as a recognition of the historic levels of
compensation that you have received and the reduction from those levels that
this contemplates.  Both for substantive
reasons and also to support the comparatively high level of compensation
approved by the Board, we will ask you to continue to be bound by the
non-competition, non-solicitation and confidentiality provisions of your
current employment contract.  These are
set forth in Exhibit A to this letter (with modest language changes to
reflect the change of your role), and we will ask Fried Frank to draft a short
agreement that is limited to these substantive terms.

 

Could you please
confirm that you are willing to continue to serve as non-executive Chairman on
these terms, subject to your acceptance of the final form of the
non-competition, non-solicitation and confidentiality agreement?  We very much appreciate your continued
commitment to the Company.

 

Sincerely,

 

	
  /s/ Charles Allen

  	
   

  
	
   

  	
   

  
	
  Charles Allen

  	
   

  
	
  Chairman

  	
   

  
	
  Compensation
  Committee

  	
   

  

 

 

Exhibit A

Restrictive Covenants

 

9.           Chairman
Covenants.

 

(a)           Confidentiality.  The
Chairman agrees and understands that the Chairman has been, and in the Chairman’s
position with the Company the Chairman will be, exposed to and receive
information relating to the confidential affairs of the Company Affiliated
Group, including without limitation technical information, business and
marketing plans, strategies, customer (or potential customer) information,
other information concerning the products, promotions, development, financing,
pricing, technology, inventions, expansion plans, business policies and
practices of the Company Affiliated Group, whether or not reduced to tangible
form, and other forms of information considered by the Company Affiliated Group
to be confidential and in the nature of trade secrets.  The Chairman
will not knowingly disclose such information, either directly or indirectly, to
any person or entity outside the Company Affiliated Group without the prior
written consent of the Company; provided, however, that (i) the
Chairman shall have no obligation under this Section 9(a) with
respect to any information that is or becomes publicly known other than as a
result of the Chairman’s breach of the Chairman’s obligations hereunder and (ii) the
Chairman may (x) disclose such information to the extent he determines
that so doing is reasonable or appropriate in the performance of the Chairman’s
duties or, (y) after giving prior notice to the Company to the extent
practicable, under the circumstances, disclose such information to the extent
required by applicable laws or governmental regulations or by judicial or
regulatory process.  The Chairman shall comply with the Company’s
data protection policies.  Upon termination of the Chairman’s
service, the Chairman shall promptly supply to the Company all property, keys,
notes, memoranda, writings, lists, files, reports, customer lists,
correspondence, tapes, disks, cards, surveys, maps, logs, machines, technical
data and any other tangible product or document which has been produced by,
received by or otherwise submitted to the Chairman in the course of or
otherwise in connection with the Chairman’s services to the Company Affiliated
Group.

 

(b)           Non-Competition
and Non-Solicitation. During the period commencing on January 1, 2011
and ending on the one-year anniversary of the termination of the Chairman’s
service with the Company, the Chairman shall not, as an employee, employer,
stockholder, officer, director, partner, colleague, consultant or other
independent contractor, advisor, proprietor, lender, or in any other manner or
capacity (other than with respect to the Chairman’s services to the Company
Affiliated Group), directly or indirectly:

 

(i)           perform
services for, or otherwise have any involvement with, a business unit of a
person, where such business unit competes directly or indirectly with any
member of the Company Affiliated Group by (x) owning or operating
broadband or mobile  communications networks for telephone, mobile
telephone, cable television or internet services, (y) providing mobile
telephone, fixed line telephone, television or internet services or (z) owning,
operating or providing any content-generation services or television channels,
in each case principally in the United Kingdom (the “Core Businesses”); provided,
however, that this Agreement shall not prohibit the Chairman from owning up to
1% of any class of equity securities of one or more publicly traded companies;

 

(ii)           hire
any individual who is, or within the six months prior to the Chairman’s
termination was, an employee of any member of the Company Affiliated Group
whose base salary at the time of hire exceeded £65,000 per year; or

 

(iii)           solicit,
in competition with any member of the Company Affiliated Group in the Core
Businesses, any business, or order of business from any person that the
Chairman knows was a current or prospective customer of any member of the
Company Affiliated Group during the Chairman’s service;

 

provided, that,
notwithstanding the foregoing, the Chairman shall not be deemed to be in
violation of clause (i) or (iii) of the foregoing by virtue of acting
as an attorney (as partner, associate, shareholder, member or employee) or as
vice president, director or managing director or similar position at any
accounting firm, law firm, investment banking firm or consulting firm,
institutional investor or similar entity, in each case so long as the Chairman
takes reasonable steps to insulate himself from the businesses and activities
of any such entity that relate to the Core Businesses during any period that
this Section 9(b) is in effect.

 

 

(c)           Remedies.  The
Chairman agrees that any breach of the terms of this Section 9 would
result in irreparable injury and damage to the Company, its subsidiaries and/or
its affiliates for which the Company, its subsidiaries and/or its affiliates
would have no adequate remedy at law; the Chairman therefore also agrees that
in the event of said breach or any threat of breach, the Company, its
subsidiaries and/or its affiliates, as applicable, shall be entitled to an
immediate injunction and restraining order to prevent such breach and/or
threatened breach and/or continued breach by the Chairman and/or any and all
persons and/or entities acting for and/or with the Chairman, without having to
prove damages, in addition to any other remedies to which the Company, its
subsidiaries and/or its affiliates may be entitled at law or in equity.  The
terms of this paragraph shall not prevent the Company, its subsidiaries and/or
its affiliates from pursuing any other available remedies for any breach or
threatened breach hereof, including but not limited to the recovery of damages
from the Chairman.  The Chairman and the Company further agree that
the provisions of the covenants contained in this Section 9 are
reasonable and necessary to protect the businesses of the Company Affiliated
Group because of the Chairman’s access to Confidential Information and his
material participation in the operation of such businesses.  Should a
court, arbitrator or other similar authority determine, however, that any
provision of the covenants contained in this Section 9 are not
reasonable or valid, either in period of time, geographical area, or otherwise,
the parties hereto agree that such covenants should be interpreted and enforced
to the maximum extent to which such court or arbitrator deems reasonable or
valid.

 

The
existence of any claim or cause of action by the Chairman against the Company
and/or its subsidiaries and/or its affiliates, whether predicated on this
Agreement or otherwise, shall not constitute a defense to the enforcement by
the Company of the covenants contained in this Section 9.Exhibit 10.7

 

[Virgin Media Limited Letterhead]

 

28th June 2010

 

PRIVATE AND PERSONAL

 

[Address intentionally omitted]

 

Dear Robert,

 

2010 Finance Organisational
review

 

As you know from our
ongoing conversations, I have reviewed the finance team to determine how
we can be better organised to make Virgin Media an even more successful
organisation.  As we have discussed, this
has meant some changes in your role with the addition of shared services and
group risk coming under your remit on a permanent basis.

 

I have also
considered your salary and total compensation as part of this review, I’m
pleased to be able to confirm that to reflect the changes to your
accountability under the new structure, your basic salary has been increased to
£205,000 per annum with effect from 1st April 2010.  The rest of your terms and conditions of
employment remain the same.

 

I look forward to
continuing to work with you Robert to make a significant difference to the way
finance influences commercial success at Virgin Media.

 

 

All the best.

 

 

	
  /s/ Eamonn O’Hare

  	
   

  
	
   

  	
   

  
	
  Eamonn O’Hare

  	
   

  
	
  Chief
  Financial Officer

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