Document:

Ex 10.1 White_2012_Non-Qualified_Stock_Option_Award_Agreement

Exhibit 10.1

DIRECTV
             2012 NON-QUALIFIED STOCK OPTION AWARD AGREEMENT
MICHAEL D. WHITE
 
THIS 2012 NON-QUALIFIED STOCK OPTION AWARD AGREEMENT (“Agreement”), dated as of [November __, 2012] (“Effective Date”), is entered into between DIRECTV a Delaware corporation (“DIRECTV”), and Michael D. White (“Executive”).
 
WHEREAS, at its meeting on [November __, 2012], the Compensation Committee of DIRECTV’s Board of Directors (the “Committee”) approved the grant to Executive of nonqualified stock options to purchase shares of DIRECTV’s common stock, $.01 par value per share (the “Common Stock”), upon the terms and conditions set forth herein and subject to the terms and conditions of the DIRECTV 2010 Stock Plan (as it may be amended from time to time, the “Plan”); and
 
WHEREAS, at its meeting on [November 2, 2012], the Board of Directors of  DIRECTV (“Board”) approved the material terms and conditions of Executive’s continuing employment as Chairman of the Board, President and Chief Executive Officer of DIRECTV, including the grant of non-qualified stock options; and
 
WHEREAS, the Committee and the Board each has also approved the terms and conditions of a severance plan for Executive effective as of January 1, 2013 (such plan, as it may be amended from time to time, is referred to herein as the “Severance Plan”); and
 
WHEREAS, both the Committee and the Board authorized the Chairman of the Committee to execute this Agreement on behalf of DIRECTV, in accordance with the resolutions adopted by each of the Committee and the Board at their respective meetings as referenced above.
 
NOW, THEREFORE, in consideration of the services rendered and to be rendered by Executive and the mutual promises made herein and the mutual benefits to be derived therefrom, DIRECTV and Executive agree as follows:
 
1.   Defined Terms.  Any capitalized term used herein and not otherwise defined shall have the meaning assigned to such term in the Plan or the Severance Plan.
 
2.   Grant of Options.  DIRECTV hereby grants to Executive, effective as of [November __, 2012] (the “Grant Date”), the right and option to purchase, on the terms and conditions set forth herein, to the extent exercisable, all or any part of an aggregate of  [TBD] shares of Common Stock at a price (“Grant Price”) of [$xx.xx] per share of Common Stock (which is the closing market price on the NASDAQ Global Select Market of a share of Common Stock on the date hereof), subject to the provisions of this Agreement and the Plan (the “Option”).
 
3.   Vesting and Exercisability of Option.  Provided Executive renders continuous active service as an employee of the Company (“Service”), the Option shall vest and become exercisable as to the total number of shares of Common Stock subject to the Option (subject to adjustment as provided in Section 8 herein or in accordance with Section 14 of the Plan), on December 31, 2015, subject to the applicable provisions of the Plan and this Agreement.  The Option may be exercised only to the extent it shall have vested and is exercisable, and, during Executive’s lifetime, only by Executive.  In no event may the Executive exercise the Option, in whole or in part, after the tenth anniversary of the Grant Date (the “Expiration Date”).  

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(a)   Cumulative Exercisability.  To the extent Executive does not, at the time of a particular exercise, purchase all the shares of Common Stock that Executive may then purchase, Executive has the right cumulatively thereafter to purchase any of such shares of Common Stock not so purchased until the Expiration Date or, if applicable, the earlier termination of the Option.
 
(b)   No Fractional Shares; Minimum Exercise.  Fractional share interests shall be disregarded, but may be cumulated.  No fewer than 100 shares of Common Stock may be purchased at any one time, unless the number purchased is the total number at the time exercisable under the Option.
 
4.   Exercise of Option.  To the extent vested and exercisable, the Option may be exercised by the delivery to DIRECTV of a written exercise notice stating the number of shares of Common Stock to be purchased pursuant to the Option accompanied by payment of the Grant Price multiplied by the aggregate number of shares of Common Stock to be purchased (such payment to be made in accordance with Section 5) and the payment or provision for any applicable employment or other taxes or withholding for taxes thereon (“Withholding Taxes”).  Subject to Section 7 below, such Option shall be deemed to be exercised upon receipt and approval by DIRECTV of such written exercise notice accompanied by the aggregate Grant Price and any other payments so required, as permitted pursuant to Section 5.
 
5.   Method of Payment of Option.  Payment of the aggregate Grant Price shall be by any of the following, or a combination thereof, at the election of Executive:
 
(a)   in cash or by electronic funds transfer, or by check payable to the order of DIRECTV, in the full amount of the purchase price of the shares of Common Stock so purchased and the amount (if any) required to satisfy any applicable Withholding Taxes;
 
(b)   by delivery of shares of Common Stock that have been held by Executive for at least six months, in accordance with Section 7(e) of the Plan, subject to compliance with applicable law;
 
(c)   payment may be made in accordance with the cashless exercise program or net exercise program, if any, of DIRECTV in effect at the time of exercise; or
 
(d)   in a combination of payments under clauses (a), (b) and (c).
 
Other payment methods may be permitted only if expressly authorized by the Committee consistent with the terms of the Plan.
 
6.   Continuance of Employment Required.  The vesting schedule requires continued Service through December 31, 2015 as a condition to the vesting of any shares of Common Stock underlying the Option and rights and benefits under this Agreement, except as otherwise provided in Section 7.  Partial service, even if substantial, during the vesting period will not entitle Executive to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a termination of employment or Service except as provided in Section 7 or 9 below or under the Plan.  
 

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7.   Effect of Termination of Employment on Vesting and Exercisability.  The Option terminates on the date Executive’s Service with DIRECTV ends (the “Termination Date”), except to the extent the following provisions apply with respect to vesting and exercisability of the Option after the Termination Date, but in no event may any portion of the Option be exercised after the Expiration Date:

(a)   If Executive’s Service terminates after December 31, 2013 and prior to December 31, 2015, as a result of his death, Disability or Retirement, then the total number of shares of Common Stock with respect to which the Option shall be considered vested and exercisable as of the Termination Date will be equal to the product of:  (1) the fraction (but not greater than one (1)) determined by dividing the number of calendar months (whole or partial) of Executive’s continuous Service from January 1, 2013 to his Termination Date by 36, multiplied by (2) the total number of shares of Common Stock subject to the Option.  The Option held by Executive after effect of this section shall be exercisable with respect to such vested number of shares, in whole or in part, by Executive (or Executive’s Personal Representative or Beneficiary, as the case may be) at any time on or prior to the Expiration Date, subject to Section 7(e).  The Option with respect to all unvested shares shall terminate as of the Termination Date.  Notwithstanding the foregoing, if Executive’s employment terminates due to Retirement, the Committee may, in its sole discretion, accelerate vesting and exercisability of the Option with respect to any or all of the shares of Common Stock underlying this Option which have not otherwise become vested and exercisable under this Section 7(a).

(b) If Executive’s employment is terminated by the Company without Cause or Executive terminates his employment due to an Effective Termination prior to December 31, 2015, the Option shall be considered vested and exercisable with respect to all of the shares of Common Stock underlying this Option as of the Termination Date.  The Option shall be exercisable as to all such vested shares, in whole or in part, by Executive at any time on or prior to the date that is three (3) calendar years after Executive’s Termination Date, provided that if such termination would also qualify as a Retirement, then the Option shall be exercisable at any time on or prior to the Expiration Date, subject in each case to Section 7(e).  Notwithstanding the foregoing, if Executive’s termination under this subsection (b) occurs in connection with or within two years following a Change in Control:  (1) all such vested shares shall be exercisable, in whole or in part, by Executive at any time on or prior to the Expiration Date; and (2) Section 7(e) shall not apply. Whether Executive’s termination is in connection with or within two years following a Change in Control will be solely determined by the Committee.

(c) If Executive’s Service terminates on or after December 31, 2015 for any reason other than Cause, then the Option shall be exercisable, in whole or in part, by Executive at any time on or prior to the Expiration Date, subject to Section 7(e). 
 
(d)   If DIRECTV terminates Executive’s employment for Cause, any unexercised shares underlying the Option shall terminate as of the date of the action or inaction which constitutes Cause, as solely determined by the Committee. 

(e)   If, at any time after the Termination Date and during the applicable period specified in Article IV of the Severance Plan, Executive shall have breached any of the covenants set forth in such Article, any unexercised shares underlying the Option shall terminate as of the date of any such breach.  
 

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8.   Adjustments Upon Specified Events.  As provided in Section 14 of the Plan, upon the occurrence of certain events relating to or affecting the Common Stock as contemplated by Section 14 of the Plan, the Committee shall, in such manner, to such extent (if any) and at such times as it deems appropriate and equitable in the circumstances, make adjustments in the number, amount and type of shares of Common Stock (or other securities or property) subject to the Option, the Grant Price and the securities deliverable upon exercise of the Option (or any combination thereof) or provide for a cash payment or the assumption, substitution or exchange of the Option or the shares or other securities subject to the Option, based upon the distribution or consideration payable to holders of Common Stock generally.  All rights of Executive hereunder are subject to such adjustments and other provisions of the Plan.
 
9.   Possible Early Termination of Award.  As permitted by Section 14 of the Plan, and without limiting the authority of the Committee under any of the provisions of Section 14 of the Plan, the Committee retains the right to terminate any portion or all of the Option, to the extent such Option has not vested, upon a dissolution of DIRECTV or a reorganization event or transaction in which DIRECTV does not survive (or does not survive as a public company in respect of its outstanding Common Stock).  This Section 9 is not intended to prevent future vesting (including provision for future vesting) if the Option (or a substituted Award) remains outstanding following a transaction described in Section 14 of the Plan.
 
10.   Leaves of Absence.  Absence from work caused by authorized sick leave or other leave approved in writing by DIRECTV or the Committee shall not be considered a termination of employment by DIRECTV for purposes of Section 7, unless otherwise determined by the Committee.
 
11.   No Limitations on Acceleration. The Severance Plan, in particular Article XI, Section F thereof, contains express provisions regarding Section 280G and/or 4999 of the Code of the type described in Section 14(f) of the Plan. Accordingly, the limitations on acceleration set forth in Section 14(f) of the Plan shall not apply to this Award.  A reduction, if any, to this Award or other effect related to Section 280G and/or Section 4999 shall be governed by the Severance Agreement.
 
12.   Associated Stock Rights.  Neither Executive nor any other person entitled to exercise the Option shall have any of the rights or privileges of a stockholder of DIRECTV as to any shares of Common Stock subject to the Option until the issuance and delivery to him or such other person of a certificate (or book entry in lieu thereof) evidencing the shares of Common Stock registered in his or such other person’s name.  No adjustment will be made for dividends or other rights as a stockholder as to which the record date is prior to such date of delivery, except as otherwise provided in Section 8.
 
13.   No Guarantee of Continued Service.  Nothing contained in this Agreement or the Plan constitutes an employment or service commitment by DIRECTV, confers upon Executive any right to remain employed by DIRECTV, interferes in any way with the right of DIRECTV at any time to terminate such employment or affects the right of DIRECTV to increase or decrease Executive’s other compensation or benefits.   Nothing in this Section 13, however, is intended to adversely affect any independent contractual right of Executive under the Severance Plan or any other agreement between DIRECTV and Executive without his consent thereto.
 
14.   Non-Transferability of Option.  The Option and any other rights of Executive under this Agreement or the Plan are nontransferable except as provided in Section 15(i) of the Plan.
 
15.   Notices.  Any notice to be given under the terms of this Agreement shall be in writing and addressed: to DIRECTV at its office located at 2230 East Imperial Highway, El Segundo, California 

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90245, to the attention of the Corporate Secretary; and to Executive at the address on file with DIRECTV, or at such other address as either party may hereafter designate in writing to the other.

16.  Taxes.  DIRECTV may, in its discretion, take action to satisfy any of Executive’s tax obligations related to the Option, including, but not limited to, withholding from Executive’s wages or other cash compensation, withholding shares that otherwise would be issued to Executive on exercise of the Option, or requiring Executive to satisfy such liability by other means as approved by DIRECTV.  

General information regarding taxation related to Options is provided in the Plan Prospectus.  Please note, however, that any taxes or withholding related to Options, or any other Award under the Plan, are the ultimate responsibility of Executive.  DIRECTV, the members of the Board of Directors or the Committee shall not be liable to Executive or other person for any adverse tax consequences realized by Executive relating to the grant, vesting or exercise of the Option hereunder or any tax consequences relating to the later sale of shares of Common Stock purchased pursuant to an exercise of the Option.  

DIRECTV has made no representations to Executive with respect to the tax consequences of any Award or transactions contemplated herein.  Nothing stated herein is intended or written to be used, and cannot be used, for the purpose of avoiding taxpayer penalties. 

17.  Effect of Agreement.  This Agreement shall be binding upon and inure to the benefit of any successor or successors of DIRECTV, except to the extent the Committee determines otherwise.
 
18.   Entire Agreement; Governing Law.  The Plan is incorporated herein and made a part hereof by this reference.  Subject to Section 20 below, the Plan and this Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of DIRECTV and Executive with respect to the subject matter hereof.  The construction, interpretation, performance and enforcement of this Agreement and the Option shall be governed by the internal substantive laws, but not the choice of law rules, of the State of Delaware.
 
19.   Plan.  The Option and all rights of Executive with respect thereto are subject to, and Executive agrees to be bound by, all of the terms and conditions of the provisions of the Plan, as amended or supplemented in accordance with the Plan.  Executive acknowledges receipt of a copy of the Plan and agrees to be bound by the terms thereof as so amended or supplemented.  Unless otherwise expressly provided in other Sections of this Agreement, provisions of the Plan that confer discretionary authority on the Committee do not (and shall not be deemed to) create any rights in Executive unless such rights are expressly set forth herein or are otherwise in the sole discretion of the Committee specifically so conferred by appropriate action of the Committee under the Plan after the date hereof.
 
20.   Severance Plan.  If any provision of this Agreement is inconsistent with any provision of the Severance Plan, the provisions of the Severance Plan shall control.
 
21.   Amendment.  The terms of this Agreement may be amended only by an agreement in writing executed by DIRECTV and Executive.  DIRECTV may amend or terminate the Plan at any time and for any reason, however, such amendment or termination shall not impair the rights or obligations of the parties under the Option without Executive’s consent, unless such modification is necessary or desirable to comply with any applicable law, regulation or rule.  
 
22.   Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute on and the same instrument.

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23.   Section Headings.  The Section headings of this Agreement are for convenience of reference only and shall not be deemed to alter or affect any provision hereof.
 
IN WITNESS WHEREOF , DIRECTV has caused this Agreement to be executed on its behalf by the Chairman of its Compensation Committee and Executive has hereunto set his hand as of the date and year first written above.
 
	
		
	 
	DIRECTV
By:                                                             
 Charles R. Lee
 Chairman of the Compensation
 Committee

	 
	EXECUTIVE
By:                                                              
 Michael D. White
 

 

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56476 v2Ex 10.2 - CEO_Severance_Plan

Exhibit 10.2

DIRECTV
CHIEF EXECUTIVE OFFICER SEVERANCE PLAN

DIRECTV, a Delaware corporation (“DIRECTV” or the “Company”), has adopted the DIRECTV Chief Executive Officer Severance Plan (the “Plan”) for the benefit of Michael D. White (“Executive” or “Participant”) on the terms and conditions hereinafter stated.  
The Plan shall be effective on the Effective Date, which shall be January 1, 2013.  This Plan represents exclusive severance benefits provided to Participant and supersedes any Other Severance Agreements. 
To the extent applicable, it is intended that portions of this Plan either comply with or be exempt from the provisions of Code Section 409A. This Plan shall be administered in a manner consistent with this intent and any provision that would cause this Plan to fail to comply with or be exempt from Code Section 409A shall have no force and effect.
		
	I.
	DEFINITIONS.  Capitalized terms are defined as set forth in the DIRECTV Executive Severance Plan, unless otherwise provided herein.

		
	A.
	“Cause” shall mean:  (1) Participant’s conviction of, or pleading guilty or nolo contendere to, a felony; (2) Participant’s engagement in conduct that constitutes continued willful neglect or willful misconduct in carrying out Participant’s duties, resulting, in either case, in economic harm to or damage to the reputation of the Company; or (3) Participant’s breach of any material Company policy or regulation, which breach is not substantially cured within fifteen days after written notice to Participant specifying such breach.  Notwithstanding the above, the cessation of employment of Participant shall not be deemed to be for Cause unless and until there shall have been delivered to Participant a copy of a resolution duly adopted by the affirmative vote of seventy-five percent (75%) of the entire membership of the Board (excluding, however, Participant, if he is a member of the Board at such time) at a meeting of the Board called and held for such purpose (after reasonable notice is provided to Participant and Participant is given an opportunity, together with counsel, to be heard before the Board) finding that, in the good faith opinion of the Board, Cause exists and specifying the particulars thereof in reasonable detail.

		
	B.
	“Effective Termination” shall mean the occurrence of any of the following without Participant’s consent:  

(1) a material reduction in either Participant’s aggregate annual cash compensation opportunity (Base Salary plus bonus opportunity) or his aggregate total direct compensation opportunity (Base Salary, bonus opportunity, plus equity compensation opportunity, determined as provided below); however, a material reduction, as set forth above, will not have occurred if such reduction is made 

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with respect to all named executive officers as shown in the Company’s most recent proxy statement who are continuing as executive officers at the time; 
(2) the Company’s (i) termination of the Plan in whole or in part; or (ii) amendment of the Plan resulting in a material adverse change in the rights or benefits of Participant; provided, further, that an Effective Termination resulting under this subsection (2) shall not be effective unless and until the effective date of such adverse termination or amendment, and provided, however, that (x) neither occurrence under (i) nor (ii) shall be an “Effective Termination” if (I) Participant receives at least twelve (12) months’ advance notice of the date of such termination or amendment, and (II) each of the Executive Severance Plan and any other successor or replacement plan providing benefits similar to this Plan and covering any named executive officer of the Company is terminated or amended in the same manner; and (y) in no event shall any such notice under (x) be effective upon any such amendment, partial termination or complete termination of the Plan made in violation of the second sentence of Article VI (relating to a Change in Control); 
(3) the material reduction of Participant’s responsibilities, titles, powers or duties, or the assignment of duties inconsistent with Participant’s positions of Chairman and Chief Executive Officer; or 
(4) a transfer of Participant’s principal place of employment by more than 50 miles, provided such transfer lengthens Participant’s commute by at least 10 miles one-way.
Provided, however, that any of the events described in clauses (1) - (4) above shall constitute an Effective Termination, subject to the terms above, only if the Company fails to cure such event within 30 days after receipt from Participant of written notice of the event which constitutes an Effective Termination; and provided further, that Participant shall cease to have a right to terminate due to Effective Termination on the 60th day following the later of the occurrence of the event (or the effective date in the case of subsection (2) above) or Participant’s knowledge thereof, unless Participant has given the Company notice thereof prior to such date.  
For purposes of determining the Participant’s aggregate total direct compensation opportunity under subsection (1) above, for each of the calendar years 2013, 2014 and 2015, one-third of the aggregate value of the 2012 Option Award, as reported in the Company’s proxy statement for the 2013 annual stockholders’ meeting, shall be added to the value of the equity compensation awarded Participant by the Compensation Committee for each such calendar year and none of such aggregate value shall be included in Participant’s aggregate equity compensation opportunity for the 2012 fiscal year.

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	C.
	“Restriction Period” shall mean the period:  (1) commencing on the occurrence of a Change in Control and ending on the second anniversary of such Change in Control; or (2) commencing prior to the occurrence of a Change in Control when such amendment or termination is adopted, if adopted in connection with such Change in Control or at the request or suggestion of a third-party; provided in either event that the Company and such third-party (or affiliate thereof) enter into an agreement that would at such time reasonably be expected to result in a Change of Control, and ending on the earlier of either the second anniversary of the date that such Change in Control occurs or the date that such agreement is terminated by the parties.

		
	D.
	 “Retirement” shall mean Participant’s termination of employment after age 55, with at least 5 years of Continuous Service, as such term is defined in the DIRECTV Pension Plan.

		
	E.
	“2012 Option Award” shall mean the stock option granted to Participant in November, 2012.

		
	II.
	PAYMENTS UPON TERMINATION/SEVERANCE

		
	A.
	Termination Due to Death.  If Participant’s employment is terminated due to his death, in addition to payments required by law, Participant’s successors in interest shall be entitled to the payment of:  (1) Participant’s Target Bonus for the year in which his termination occurred, pro-rated for the months of service (including both partial and whole months) up to and including the month of termination; (2) Participant’s equity compensation pursuant to any applicable outstanding DIRECTV equity award issued to Participant; and (3) any additional benefits in accordance with the terms and conditions of the applicable plans and programs of the Company.

		
	B.
	Termination Due to Disability.  If Participant’s employment is terminated due to his Disability, in addition to payments required by law, Participant shall be entitled to the payment of:  (1) Participant’s Target Bonus for the year in which his termination occurred, pro-rated for the months of service (including both partial and whole months) up to and including the month of termination; (2) Participant’s equity compensation pursuant to any applicable outstanding DIRECTV equity award issued to Participant; (3) any additional benefits in accordance with the terms and conditions of the applicable plans and programs of the Company; and (4) monthly reimbursement of an amount equal to Participant’s incurred COBRA medical premium for him and his eligible dependents who are currently covered under the medical plan for a period ending on the earlier of:  (a) twelve (12) months after Participant’s termination; and (b) the date Participant and his eligible dependents become ineligible for COBRA.  For purposes of clarification, reimbursement for dental and vision coverage is not included in the Plan.

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	C.
	Termination Without Cause and Effective Termination.  If the Company terminates Participant’s employment without Cause or Participant terminates his employment due to an Effective Termination, in either case whether or not related to a Change in Control, then, in addition to payments required by law, Participant shall be entitled to the following payments and benefits from the Company:  (1) Participant’s bonus for the year in which Participant’s termination occurred, pro-rated for the months of service (including both partial and whole months) up to and including the month of termination and based on actual performance for the year, payable concurrently with bonus payments to other employees under the Executive Officer Cash Bonus Plan, which is subject to Company performance and the other terms and conditions of the applicable bonus awards; (2) a severance payment in an amount equal to one hundred percent (100%) of the sum of Participant’s then current Base Salary and Target Bonus; (3) Participant’s equity compensation pursuant to any applicable outstanding DIRECTV equity award issued to Participant, in accordance with the terms of such awards; and (4) a monthly reimbursement payment in an amount equal to Participant’s incurred COBRA medical premium for him and his eligible dependents who are currently covered under the medical plan for a period ending on the earlier of:  (a) twelve (12) months after Participant’s termination; (b) the date he and/or his dependents become ineligible for COBRA; and (c) the date Participant is eligible for medical coverage through another employer.  Participant shall also be entitled to receive such other compensation or benefits (other than any cash severance payments, bonus or equity awards, as described above) as are provided in accordance with the terms and conditions of any applicable plans and programs of the Company.  In addition, if Participant’s employment terminates under this Paragraph C and such termination is effective during the Restriction Period, Participant’s outstanding equity awards shall become fully vested and distributable in accordance with the terms of the applicable equity award. 

		
	D.
	Voluntary Termination.  If Participant voluntarily terminates employment, excluding termination due to Retirement or Effective Termination, Participant shall be entitled to the payment of any earned but unpaid compensation and benefits in accordance with applicable law and the terms and conditions of the applicable plans and programs of the Company, including Participant’s equity compensation pursuant to any applicable outstanding DIRECTV equity award issued to Participant.

		
	E.
	Termination for Cause.  If Participant’s employment is terminated for Cause, Participant shall be entitled only to the payment of any earned but unpaid compensation and benefits to the extent required by applicable law or specifically provided under the terms and conditions of the applicable plans and programs of the Company.

		
	F.
	Retirement.  If Participant’s employment is terminated due to his Retirement, in addition to payments required by law, Participant shall be entitled to the 

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following:  (1) Participant’s bonus for the year in which Participant’s termination occurred, pro-rated for the months of service (including both partial and whole months) up to and including the month of termination and based on actual performance for the year, payable concurrently with bonus payments to other employees under the Executive Officer Cash Bonus Plan, which is subject to Company performance and the other terms and conditions of the applicable bonus awards; provided however that Participant’s termination was during the last six months of the calendar year; (2) Participant’s equity compensation pursuant to any applicable outstanding DIRECTV equity awards issued to Participant; (3) any additional benefits in accordance with the terms and conditions of the applicable plans and programs of the Company.
		
	III.
	POST-TERMINATION FORBEARANCE

In addition to any severance benefits provided to Participant under this Plan, the Company shall pay Participant an amount equal to one hundred percent (100%) of the sum of his Base Salary and Target Bonus, measured as of the date of such termination of employment, if:  (A) Participant’s employment with the Company terminates pursuant to Article II, Paragraph (C), (D) or (F), above; and (B) for a period of two years after such termination, Participant does not, directly or indirectly, (1) induce or attempt to induce any employee, whether a director, manager, supervisor or non-managerial employee, of the Company to render services to any other person, firm or corporation, or (2) engage in any business which competes with the Company and does not directly or indirectly own, manage, operate, join, control or participate in the ownership, management, operation or control of, or be employed by, or connected in any manner with any corporation, firm or business that is so engaged.  For purposes of clarification, the foregoing does not prohibit Participant from owning less than five percent (5%) of the outstanding common stock of any company whose shares are publicly traded.  Notwithstanding the above, the Compensation Committee may cancel Participant’s eligibility for any forbearance payment under this Article III by providing Participant notice within twenty (20) business days of Participant’s termination date.  In addition to the above, if Participant is subject to this Article III and the Compensation Committee determines that he has violated (B) above, all of Participant’s undistributed restricted stock units and unvested stock options shall terminate at the date on which such violation occurred, as determined by the Compensation Committee.
		
	IV.
	ADDITIONAL TERMS 

		
	A.
	Timing of Payment.  Unless otherwise provided above, if Participant is due a cash payment under Article II, it will be paid in one lump sum as soon as practicable after the Participant’s termination and, in no event, later than sixty (60) days after the date the Participant’s employment with the Company terminated, provided that by such date the Participant has executed and returned to the Company a general release of claims in the form established by the Company (but which shall not require a release of claims for indemnification or coverage under directors and officers liability insurance or of benefits described in this Plan) and any applicable revocation period for such release has expired.  If Participant is due a post-

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termination forbearance payment under Article III above he (or his successors in interest in the event of his death following termination of employment) will receive one lump sum to be paid within the sixty (60) day period immediately following the second anniversary of the Participant’s termination of employment with the Company, provided that by such date the Participant has executed and returned to the Company a general release of claims in the form established by the Company and any applicable revocation period for such release has expired.  Notwithstanding the foregoing, for the avoidance of doubt, where the applicable sixty (60) day period for release consideration and revocation could result in a payment under this Plan to be made in either of two calendar years, such payment shall be made in the second calendar year.
		
	B.
	Taxes.  Severance and other payments under the Plan will be subject to all required taxes and may be impacted by any legally required withholdings.  Payments under the Plan are not deemed “compensation” for purposes of DIRECTV retirement plans, savings plans, and incentive plans.  Accordingly, no deductions will be taken for any of the DIRECTV retirement and savings plans.

		
	C.
	Specified Employees.  Notwithstanding anything herein to the contrary, (1) if, at the time of a Participant’s termination of employment with the Company, he is a "specified employee" as defined in Code Section 409A, and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent the imposition of any accelerated or additional tax under Code Section 409A, then the Company will defer commencement of the payment of any such payments or benefits hereunder (without any reduction or increase in such payments or benefits ultimately paid or provided to the Participant) until the date that is six (6) months following such Participant’s termination of employment with the Company (or the earliest date that is permitted under Code Section 409A); and (2) if any other payments of money or other benefits due to the Participant hereunder would cause the application of an accelerated or additional tax under Code Section 409A, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Code Section 409A, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner, determined by or at the direction of the Compensation Committee, that does not cause such an accelerated or additional tax or result in additional cost to the Company.  The Company shall consult with its legal counsel and tax advisors in good faith regarding the implementation of this Article IV, Paragraph C, which shall be done only in a manner that is reasonably acceptable to the Participant; provided, however, that neither the Company, nor any of its employees or representatives, shall have any liability to the Participant with respect thereto.

		
	V.
	LEGAL FEES TO ENFORCE RIGHTS AFTER CHANGE IN CONTROL  

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DIRECTV is aware that upon the occurrence of a Change in Control, the Board of Directors or a shareholder of DIRECTV or of any successor corporation might then cause or attempt to cause DIRECTV or such successor to refuse to comply with its obligations under the Plan and might cause or attempt to cause DIRECTV to institute, or may institute arbitration seeking to deny Participant the benefits intended under the Plan.  In these circumstances, the purpose of the Plan could be frustrated.  Accordingly, if, following a Change in Control, DIRECTV or any successor corporation has failed to comply with any of its obligations under the Plan or any agreement thereunder, or, if DIRECTV or any other person takes any action to declare the Plan void or unenforceable or institutes any arbitration or other legal action designed to deny, diminish or to recover from Participant the benefits intended to be provided, then DIRECTV irrevocably authorizes such Participant to retain counsel of his choice at the expense of DIRECTV or its successor in interest to represent such Participant in connection with the initiation or defense of any arbitration or other legal action, whether by or against DIRECTV or  its successor in interest, in any jurisdiction.  Such fees, if any, will be advanced by DIRECTV to such Participant subject to reimbursement if Participant does not prevail in such action.
		
	VI.
	TERMINATION OR AMENDMENT OF THE PLAN

Although the Plan is designed to provide severance and other benefits to Participant as provided herein, the Board of Directors or the Compensation Committee may amend or terminate the Plan in whole or in part at any time subject to Paragraph B of Article I.  However, no adverse amendment or termination of the Plan with respect to Participant shall be effective during the Restriction Period without his express written consent.

		
	VII.
	GOVERNING BENEFITS

Except as specifically referenced herein, the benefits under this Plan replace and supersede any severance benefits or non-competition/forbearance agreements previously established for the Participant, whether set forth in an employment agreement, severance arrangement or otherwise, including, without limitation, any Other Severance Arrangements.
		
	VIII.
	ARBITRATION

		
	A.
	Any claims the Company may have against a Participant arising under this Plan, as well as any claim Participant may have regarding the interpretation of the Plan, or any dispute regarding the interpretation of the Plan must be submitted to final and binding arbitration in Los Angeles, California or, if Participant so elects in the demand for arbitration, in the metropolitan area in which Participant’s principal place of employment with the Company was located, pursuant to the authority of the Federal Arbitration Act.  To the extent they are not inconsistent with the provisions herein, the arbitration will be conducted under the rules of the tribunal mutually agreed upon by the parties (“Tribunal”), such as DRS or the Judicial Arbitration & Mediation Services (“JAMS”).  In the event the parties select an arbitrator unaffiliated with a Tribunal, the provisions of the Company’s Arbitration Procedure shall apply.  Judgment upon any award rendered by an arbitrator may be entered in any court having jurisdiction.

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	B.
	Subject to Paragraph A above, any demand for arbitration (which must be bilateral only) may be filed with the Compensation Committee within the time period covered by the applicable statute of limitations.  The Compensation Committee and the Participant will jointly select an arbitrator in a timely manner. 

		
	C.
	There shall be one arbitrator who will be appointed by mutual agreement of the parties, or failing such agreement, in the following manner.  The agreed upon Tribunal shall furnish the parties with a list of potential arbitrators.  In no event may the parties review more than three lists.  Once a particular list has been accepted by both the parties, the parties shall alternatively eliminate the names of the arbitrators until only one name remains.  That remaining person shall be appointed the arbitrator.  The parties shall draw lots to decide which party shall eliminate the first name of the list.

		
	D.
	The arbitrator shall commence a hearing on the matter within 45 days of his or her appointment (unless the parties agree to extend such period of time) and shall continue the proceedings without substantial interruption until all evidence and arguments are presented.

		
	E.
	Each party shall have the right to take the deposition of one individual and any expert witness designated by the other party.  Each party also shall have the right to make requests for production of documents to any party and to subpoena documents from third parties.  The arbitrator shall determine whether any additional requests for discovery should be granted in order for the requesting party to adequately arbitrate the matter, taking into account the parties’ mutual desire to have a fast, cost-effective dispute resolution mechanism.

		
	F.
	The arbitrator shall not extend, modify or suspend any of the terms of this Plan.

		
	G.
	The arbitrator’s award shall be rendered as expeditiously as possible and in no event later than 30 days after the close of the hearing and shall set forth the reasoning for the decision.  In the event the arbitrator finds that Participant is entitled to benefits claimed under the Plan, the arbitrator shall order the Company to pay such benefits, in the amounts and at such time as the arbitrator determines.  The award of the arbitrator shall be final and binding on the parties.  The Company shall thereupon pay Participant immediately the amount, if any, that the arbitrator orders to be paid in the manner described in the award.

		
	H.
	The parties will equally share the arbitrator’s fees and costs, unless the Company is required by law to cover such costs.

		
	I.
	The arbitrator may, as required by law or in his or her discretion, award reasonable attorneys’ fees and/or costs to the prevailing party.  

		
	J.
	Either party may bring an action in any court of competent jurisdiction to compel arbitration or to enforce and/or vacate an arbitration award. 

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	IX.
	GENERAL INFORMATION

		
	A.
	No Right to Awards or Continued Employment.  Nothing contained in this Plan shall confer upon Participant any right to continue in the employ of the Company, constitute any contract or agreement of employment, nor interfere in any way with the right of the Company to change Participant's compensation or other benefits, or to terminate his employment, with or without cause, subject to the terms of this Plan. 

		
	B.
	Plan Not Funded.  Amounts payable under this Plan shall be payable from the general assets of the Company, and no special or separate reserve, fund or deposit shall be made to assure payment of such amounts.  Neither Participant nor any beneficiary or other person shall have any right, title or interest in any fund or in any specific asset of the Company by reason of participation hereunder.  Neither the provisions of this Plan, nor the creation or adoption of this Plan, nor any action taken pursuant to the provisions of this Plan shall create, or be construed to create, a trust of any kind or a fiduciary relationship between the Company and any Participant, beneficiary or other person.  To the extent that Participant, a beneficiary or other person acquires a right to receive payment under this Plan, such right shall be no greater than the right of any unsecured general creditor of the Company.  Notwithstanding the foregoing, the Company shall have the right to implement or set aside funds in a grantor trust, subject to the claims of the Company's creditors or otherwise, to discharge its obligations under the Plan.

		
	C.
	Non-Transferability of Benefits and Interests.  Except as expressly provided by the Compensation Committee in accordance with the provisions of Code Section 162(m), all amounts payable under this Plan are non-transferable, and no amount payable under this Plan shall be subject in any manner to sale, transfer, anticipation, alienation, assignment, pledge, encumbrance or charge.  This Section shall not apply to an assignment of a contingency or payment due:  (1) after the death of Participant to his legal representative or beneficiary; or (2) after the disability of Participant to his personal representative.

		
	D.
	Discretion of Company, Board of Directors and Compensation Committee.  Any decision made or action taken by, or inaction of, the Company, the Board of Directors or the Compensation Committee arising out of or in connection with the creation, amendment, construction, administration, interpretation and effect of this Plan that is within its authority hereunder or applicable law shall be made in good faith, within the absolute discretion of such entity, and shall be conclusive and binding upon all persons.  In the case of any conflict, the decision made or action taken by, or inaction of, the Compensation Committee will control.

		
	E.
	Indemnification.  Neither the Board of Directors nor the Compensation Committee, any employee of the Company, nor any person acting at the direction thereof (each such person an "Affected Person"), shall have any liability to any person (including without limitation, Participant), for any act, omission, 

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interpretation, construction or determination made in connection with this Plan (or any payment made under this Plan).  Each Affected Person shall be indemnified and held harmless by DIRECTV against and from any loss, cost, liability or expense (including attorneys' fees) that may be imposed upon or incurred by such Affected Person in connection with or resulting from any action, suit or proceeding to which such Affected Person may be a party or in which such Affected Person may be involved by reason of any action taken or omitted to be taken under the Plan and against and from any and all amounts paid by such Affected Person, with the Company’s approval, in settlement thereof, or paid by such Affected Person in satisfaction of any judgment in any such action, suit or proceeding against such Affected Person; provided that, the Company shall have the right, at its own expense, to assume and defend any such action, suit or proceeding and, once the Company gives notice of its intent to assume the defense, the Company shall have sole control over such defense with counsel of the Company's choice.  The foregoing right of indemnification shall not be available to an Affected Person to the extent that a court of competent jurisdiction in a final judgment or other final adjudication, in either case, not subject to further appeal, determines that the acts or omissions of such Affected Person giving rise to the indemnification claim resulted from such Affected Person's bad faith, fraud or willful wrongful act or omission.  The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which Affected Persons may be entitled under the Company's Certificate of Incorporation or by-laws, as a matter of law, or otherwise, or any other power that the Company may have to indemnify such person or hold them harmless.
		
	F.
	No Excise Tax Gross-Up; Possible Reduction of Payments.  Any provision of this Plan or any other compensation plan, program or agreement to which Participant is a party or under which Participant is covered to the contrary notwithstanding, Participant will not be entitled to any gross-up or other payment for golden parachute excise taxes Participant may owe pursuant to Code Section 4999.  In the event that any severance or other benefits otherwise payable to Participant (i) constitute “parachute payments” within the meaning of Code Section 280G, and (ii) but for this Paragraph F would be subject to the excise tax imposed by Code Section 4999, then such benefits hereunder and under such other plans, programs and agreements shall be either (x) delivered in full, or (y) delivered as to such lesser extent which would result in no portion of such benefits being subject to excise tax under Code Section 4999, whichever of the foregoing amounts, taking into account the applicable federal, state and local income and employment taxes and the excise tax imposed by Code Section 4999 (and any equivalent state or local excise taxes), results in the receipt by Participant on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Code Section 4999.  Unless the Company and Participant otherwise agree in writing, any determination required under this Paragraph F will be made in writing by independent public accountants as the Company and Participant agree (the “Accountants”), whose determination will be 

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conclusive and binding upon Participant and the Company for all purposes.  For purposes of making the calculations required by this Paragraph F, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Code Sections 280G and 4999.  The Company and Participant agree to furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this provision.  The Company will bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this provision.  Any reduction in payments and/or benefits required by this provision shall occur in the following order: (1) reduction of cash payments, beginning with payments scheduled to occur soonest; (2) reduction of vesting acceleration of equity awards (in reverse order of the date of the grant); and (3) reduction of other benefits paid or provided to Participant.
		
	G.
	Section 409A.  Notwithstanding any provision of the Plan to the contrary, if any benefit provided under this Plan is subject to the provisions of Code Section 409A and the regulations issued thereunder, the provisions of the Plan will be administered, interpreted and construed in a manner necessary to comply with Code Section 409A or an exception thereto.  Notwithstanding any provision of the Plan to the contrary, in no event shall the Company (or its employees, officers or directors) have any liability to Participant (or any other person) due to the failure of the Plan to satisfy the requirements of Code Section 409A or any other applicable law.

		
	H.
	Law to Govern.  All questions pertaining to the construction, regulation, validity and effect of the provisions of this Plan shall be determined in accordance with the laws of the State of Delaware.

		
	I.
	Notice.  Any notice or other communication required or which may be given pursuant to this Plan shall be in writing and shall be deemed to have been duly given when delivered by hand or overnight courier or two days after it has been mailed by United States express or registered mail, return receipt requested, postage prepaid, addressed to the Company at DIRECTV, 2230 E. Imperial Highway, El Segundo, CA  90245, Attention:  Corporate Secretary, Telecopy:  (310) 964-0838 or to Participant at his most recent address on file with the Company.

		
	J.
	Construction.  It is the intent of the Company that this Plan, and payments made hereunder, will qualify as performance-based compensation or will otherwise be exempt from deductibility limitations under Code Section 162(m).  Any provision, application or interpretation of this Plan inconsistent with this intent to satisfy the standards in Code Section 162(m) shall be disregarded.

		
	K.
	Captions.  Captions and headings are given to the sections and subsections of this Plan solely as a convenience to facilitate reference.  Such headings shall not be 

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deemed in any way material or relevant to the construction or interpretation of this Plan or any provision thereof.
		
	L.
	Non-Exclusivity of Plan.  Subject to compliance with Code Section 162(m), nothing in this Plan shall limit or be deemed to limit the authority of the Board of Directors or the Compensation Committee to grant awards or payments or authorize any other compensation under any other plan or authority that it hereafter adopts.

		
	M.
	Limitation on Actions.  Any and all rights of Participant against the Company arising out of or in connection with this Plan or any payments hereunder shall terminate, and any action against the Company shall be barred, after the expiration of one year from the date of the act or omission in respect of which such right of action arose.

		
	N.
	Successors.  The provisions of this Plan shall inure to the benefit of and be binding upon the Company, its successors and assigns.

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AGREEMENT TO DIRECTV
CHIEF EXECUTIVE OFFICER SEVERANCE PLAN

DIRECTV, a Delaware corporation (“DIRECTV”), has adopted the DIRECTV Chief Executive Officer Severance Plan (the “Plan”) to provide certain benefits for me.  In connection with DIRECTV’s adoption of the Plan, I hereby agree to the terms and conditions of the Plan.  I understand that pursuant to my agreement to be covered under the Plan, as indicated by my signature below, the terms of the Plan will exclusively govern all subject matter addressed by the Plan and I understand that the Plan supersedes and replaces, as applicable, any and all agreements (including any prior employment agreement), plans, policies, guidelines or other arrangements, including Other Severance Arrangements (as defined in the Executive Severance Plan), with respect to the subject matter covered under the Plan, from and after the Effective Date.

Dated: ____________________

PARTICIPANT

_____________________________ 
Michael D. White

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