Document:

LG-2015.3.31.15-Ex_10.1

EXHIBIT 10.1
LIBERTY GLOBAL 2014 INCENTIVE PLAN

(Amended and Restated effective February 24, 2015)

Article I 
 
PURPOSE OF PLAN
1.1    Purpose. The purpose of the Plan is to promote the success of the Company by providing a method whereby eligible employees of the Company and its Subsidiaries may be awarded additional remuneration for services rendered and encouraged to acquire shares of the Company, thereby increasing their proprietary interest in the Company’s businesses, encouraging them to remain in the employ of the Company or its Subsidiaries, and increasing their personal interest in the continued success and progress of the Company and its Subsidiaries. The Plan is also intended to aid in attracting Persons of exceptional ability to become officers and employees of the Company and its Subsidiaries.  All Awards made under the Plan may be settled in Shares only.
1.2    Effective Date.  The Plan was originally effective March 1, 2014 (the “Effective Date”) and was amended and restated effective as of February 24, 2015 with respect to Awards made after that date.
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):
“Act” means the U.K. Companies Act 2006, as amended from time to time, and the rules and regulations thereunder.

“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.  For purposes of the preceding sentence, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any entity or organization, shall mean the possession, directly or indirectly, of the power (i) to vote more than 50% of the securities having ordinary voting power for the election of directors of the controlled entity or organization, or (ii) to direct or cause the direction of the management and policies of the controlled entity or organization, whether through the ownership of voting securities or by contract or otherwise.

“Agreement” means a share option agreement, share appreciation rights agreement, restricted shares agreement, restricted share units agreement or an agreement evidencing more than one type of Award, specified in Section 11.5, as any such Agreement may be supplemented or amended from time to time.

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“Approved Transaction” means any transaction in which the Board (or, if approval of the Board is not required as a matter of law, the Shareholders) shall approve (i) any consolidation or merger of the Company, or binding share exchange, pursuant to which Shares of the Company would be changed or converted into or exchanged for cash, securities, or other property (including pursuant to a Scheme of Arrangement), other than any such transaction in which the Shareholders immediately prior to such transaction have the same proportionate ownership of the shares 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 Shareholders immediately prior thereto have less than a majority of the combined voting power of the outstanding capital shares 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 (including pursuant to a Scheme of Arrangement), (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, Restricted Share Units, and/or Performance Awards under the 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 U.S. 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 pursuant to Section 3.1 to administer the Plan.

“Company” means Liberty Global plc, a public limited company incorporated under English law.

“Control Purchase” means any transaction (or series of related transactions) in which 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 shares of the Company 

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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 the Chairman of the Board and each of the directors of the Company as of June 7, 2013, 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.

“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, as supported by a written opinion of a physician and determined by the Company. The Company may seek a second opinion as to the determination of Disability from a physician selected by the Company, and in such case, the Holder will be required to submit to an examination and provide the physician with any information that is necessary for such determination.

“Dividend Equivalents” means, with respect to Restricted Share Units, to the extent specified by the Committee only, a cash amount equal to all dividends and other distributions (or the economic equivalent thereof) which are payable to Shareholders of record during the Restriction Period on a like number and kind of Shares represented by the Award of Restricted Share Units.

“Domestic Relations Order” means any final and legally enforceable judgment, decree or other order regarding the division of property under domestic relations law applicable to the Holder. 

“Effective Date” has the meaning ascribed thereto in Section 1.2.

“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.

“Exchange Act” means the U.S. 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 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 on such day (or, if such day is not a trading day, on the next preceding trading day) as reported on the Nasdaq or, if not traded on the Nasdaq, such other principal U.S. securities exchange for such security on the date of determination. If for any day the Fair Market Value of a Share is not determinable by any of the foregoing means, then the Fair Market Value 

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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.

“Free Standing SAR” has the meaning ascribed thereto in Section 7.1. “Holder” means a Person who has received an Award under the Plan. “Nasdaq” means the Nasdaq Global Select Market.
“Option” means a share option granted under Article VI.

“Performance Award” means an Award made pursuant to Article X of the Plan to a Holder that is subject to the attainment of one or more Performance Objectives.

“Performance Objective” means a standard established by the Committee to determine in whole or in part whether a Performance Award shall be earned.

“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 Global 2014 Incentive Plan, as effective March 1, 2014, and as may be amended from time to time.

“Restricted Share Unit” means a unit representing the right to receive one Share that is subject to a Restriction Period and awarded pursuant to Article IX.

“Restricted Shares” means Shares subject to a Restriction Period and awarded pursuant to Article VIII.

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

“Retained Distribution” has the meaning ascribed thereto in Section 8.3.

“Retirement” means the voluntary termination of a Holder’s employment with the Company and its Subsidiaries on such terms as are determined by the Committee and set forth in the Agreement, or, if not otherwise set forth in the Agreement, the voluntary termination on or after the date that the sum of the Holder’s years of age and years of employment with the Company and its Subsidiaries is at least 70.

“SARs” means share appreciation rights, awarded pursuant to Article VII, with respect to Shares.

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“Scheme of Arrangement” means a scheme of arrangement sanctioned by a court under section 899 of the Act, as may be amended or similar procedure under a succeeding law or regulation.

“Share” means each or any (as the context may require) class of the Company’s ordinary shares.

“Shareholder” means a holder of the ordinary or preference shares of the Company, known as a “member” under English law.

“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. For purposes of Section 5.1, a Subsidiary shall additionally mean a subsidiary within the meaning of Section 1159 of the Act.

“Substitute Awards” means Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, awards previously granted, or the right or obligation to make future awards, by a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines.

“Tandem SARs” has the meaning ascribed thereto in Section 7.1.

“Vesting Date,” with respect to any Restricted Shares or Restricted Share Units awarded hereunder, means the date on which such Restricted Shares or Restricted Share Units 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 or Restricted Share Units. If more than one Vesting Date is designated for an Award of Restricted Shares or Restricted Share Units, 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    Committee. The Plan shall be administered by the Compensation Committee of the Board unless a different committee is subsequently appointed by the Board. The Committee shall be comprised of not less than two Persons who fulfill the “non‐employee director” requirements of Rule 16b‐3 under the Exchange Act, the “outside director” requirements of Section 162(m) of the Code and the “independent” requirement of the rules of any principal securities exchange on which any of the securities of the Company are traded, listed or quoted, if any.  To the extent that one or more members of the Committee do not satisfy the foregoing requirements generally or with 

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respect to a particular matter, any such members may recuse themselves or abstain from participation, and the remaining members of the Committee may act for the Committee as a whole provided such remaining members satisfy the requirements of the previous sentence. The Board may from time to time appoint members of the Committee in substitution for or in addition to members previously appointed, may fill vacancies in the Committee and may remove members of the Committee. The Committee shall select one of its members as its chairman and shall hold its meetings at such times and places as it shall deem advisable. A majority of its members shall constitute a quorum and all determinations shall be made by a majority of such quorum. Any determination reduced to writing and signed by all of the members shall be as fully effective as if it had been made by a majority vote at a meeting duly called and held.
3.2    Powers.  The Committee 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, Restricted Share Units under Article IX of the Plan and/or Performance Awards under Article X of the Plan, to determine the terms and conditions (which need not be identical) of all Awards so granted (which may include, without limitation, providing for the recoupment of Shares or the cash equivalent thereof), to interpret the provisions of the Plan and any Agreements relating to Awards granted under the Plan, to adopt sub-plans under the Plan, to adopt special terms for Awards granted to eligible Persons in countries outside the United Kingdom and the United States, to enter into arrangements with the trustee of any employee benefit trust established by the Company or any of its Subsidiaries or Affiliates to facilitate the administration of Awards under the Plan, and to supervise the administration of the Plan.  The Committee 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 Committee 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 Committee may take into account the nature of the services rendered by the respective employees, their present and potential contributions to the success of the Company and its Subsidiaries, and such other factors as the Committee in its discretion deems relevant.
3.3    Interpretation. The Committee 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 Committee, including any interpretation or construction of the Plan, shall be final and conclusive for all purposes and upon all Persons. No member of the Committee shall be liable for any action or determination made or taken by him or her or the Committee in good faith with respect to the Plan.
ARTICLE IV     
 
SHARES SUBJECT TO THE PLAN
4.1    Number of Shares; Award Limits.  Subject to the provisions of this Article IV, the maximum number of Shares with respect to which Awards may be granted during the term of the 

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Plan shall be 50 million Shares; provided, however, that the maximum number of class B ordinary shares, nominal value $0.01 per share, of the Company (the “Class B Shares”) with respect to which Awards may be so granted during the term of the Plan shall be 25 million Shares.  Shares issued pursuant to the Plan shall be fully paid and, to the extent permitted by the laws of England and Wales, will be made available from Shares acquired by or gifted to the Company, newly allotted and issued Shares, or Shares acquired by or issued or gifted to the trustees of an employee benefit trust established in connection with the Plan.  Any Shares (i) subject to 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), (ii) subject to any Award of Restricted Shares or Restricted Share Units that shall be forfeited prior to becoming vested (provided that the Holder received no benefits of ownership of such Restricted Shares or Restricted Share Units other than voting rights), (iii) covered by an Award and not delivered to the Holder due to payment of withholding taxes or purchase prices and (iv) that the Company repurchases on the open market by the Company with the proceeds of an Option purchase price, shall to the extent permitted under applicable law, again be available for purposes of the Plan.  Except for Awards described in Section 11.1, and subject to adjustment from time to time as provided in Section 4.2, (i) no Person may be granted in any calendar year Awards covering more than 4 million Shares, and (ii) no Person may be granted in any calendar year Awards covering more than 2 million Shares of Class B Shares.
4.2    Adjustments. If the Company subdivides its outstanding Shares into a greater number of Shares (by Share dividend, Share split, reclassification, alteration of capital, capitalization of profits, bonus issue or otherwise) or combines its outstanding Shares into a smaller number of Shares (by reverse Share split, reclassification, or otherwise) or if the Committee determines that there is any variation in the share capital of the Company or that there is any Share dividend, extraordinary cash dividend, alteration of capital, capitalization of profits, bonus issue, reclassification, recapitalization, reorganization, split-up, spin-off, combination, exchange of Shares, warrants or rights offering to purchase any class of Shares or other similar corporate event (including compromises or arrangements sanctioned by a court under section 899 of the Act, 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 class of Shares 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 its sole discretion and in such manner as the Committee may deem equitable and appropriate, may make such adjustments to any or all of (i) the number and kind of Shares which thereafter may be awarded, optioned or otherwise made subject to the benefits contemplated by the Plan, (ii) the number and kind of Shares 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 class of Shares are redeemed, then each outstanding Award shall be adjusted to substitute for the Shares 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 class of Shares and otherwise the terms of such Award, including, in the case of Options or similar rights, the aggregate exercise price, and, in the case of Free Standing SARs, the aggregate base price, shall remain constant before and after the substitution (unless otherwise determined by the Committee and provided in the applicable Agreement).

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4.3    Substitute Awards. Substitute Awards shall not reduce the Shares authorized for grant under the Plan or authorized for grant to a Person in any calendar year.  Additionally, in the event that a company acquired by the Company or any Subsidiary, or with which the Company or any Subsidiary combines, has shares available under a pre‐existing plan approved by shareholders and not adopted in contemplation of such acquisition or combination, a number of Shares equal to the number of shares available for grant pursuant to the terms of such pre‐existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the shareholders of the entities party to such acquisition or combination) shall be available for grant under Section 4.1; provided that Awards using such available shares shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to Persons who were not employed by the Company or its Subsidiaries prior to such acquisition or combination.
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 employees (including officers and directors) of the Company or its Subsidiaries as the Committee shall select.  Awards may be made to employees who hold or have held Awards under the Plan or any similar or other awards under any other plan of the Company or any of its Affiliates.
5.2    Ineligibility. No member of the Committee, while serving as such, shall be eligible to receive an Award.
ARTICLE VI     
 
OPTIONS
6.1    Grant of Options. Subject to the limitations of the Plan, the Committee 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 class and number of Shares subject to such Option, and, subject to Section 6.2, the purchase price of the Shares 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 Committee and, except in connection with Substitute Awards or as provided by any sub-plan of the Plan, may be no less than the Fair Market Value of the Shares subject to the Option as of the date the Option is granted.
6.3    Term of Options. Subject to the provisions of the Plan with respect to death, Disability, Retirement and termination of employment, the term of each Option shall be for such period as the Committee shall determine as set forth in the applicable Agreement, provided that such term may not exceed ten years.

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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 the 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 Committee, 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 Committee 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 11.9 shall be determined by the Committee and may consist of (i) cash, (ii) check, (iii) promissory note (subject to the Act and other applicable law), (iv) the withholding of Shares of the applicable class of Shares issuable upon such exercise of the Option (subject to the Act or other applicable law), (v) 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 (subject to the Act and other applicable law), (vi) any other method as provided in the applicable Agreement 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 Act.  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 Committee deems appropriate. The Committee may adopt a policy providing for the automatic exercise of an Option due to its expiration.
(b)    Value of Shares. Unless otherwise determined by the Committee and provided in the applicable Agreement, Shares of any class of Shares delivered in payment of all or any part of the amounts payable in connection with the exercise of an Option, and Shares of any class of Shares withheld for such payment, shall be valued for such purpose at their Fair Market Value as of the exercise date.  Notwithstanding the foregoing, with respect to an Option exercise the purchase price of which is paid pursuant to clause (v) of Section 6.5(a), Shares shall be valued at the price Shares are sold in the market.
(c)    Issuance of Shares. The Company shall effect the transfer of the Shares 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 11.9, 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 Agreement, (i) no Holder or other Person exercising an Option shall have any of the rights of a Shareholder with respect to Shares 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 

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dividends or other rights for which the record date is prior to the date of such due exercise and full payment.
ARTICLE VII     
 
SARS
7.1    Grant of SARs. Subject to the limitations of the Plan, SARs may be granted by the Committee to such eligible Persons in such numbers, with respect to any specified class of Shares, and at such times during the term of the Plan as the Committee 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 subject to the related Option (a “Tandem SAR”) or may be granted separately to an eligible employee (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 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 Committee and provided in the applicable Agreement, (i) the Holder thereof shall be entitled to receive, for each of the applicable classes of Shares 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 class of Shares 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 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. Subject to the provisions of the Plan with respect to death, Disability, Retirement and termination of employment, the term of a Free Standing SAR shall be for such period as the Committee shall determine as set forth in the applicable Agreement, provided that such term may not exceed ten years.  Except in connection with Substitute Awards, the base price of a Free Standing SAR may be no less than the Fair Market Value of the Shares 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 Committee and provided in the applicable Agreement, the Holder thereof shall be entitled to receive from the Company, for each Share 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 

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Share 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 the applicable class of Shares with respect to which the SAR was granted (valued at Fair Market Value on the date of exercise of such SAR).  No fractional Shares shall be issuable upon exercise of a SAR, and unless otherwise provided in the applicable Agreement, the Holder will receive cash in lieu of any fractional Shares.  Unless the Committee shall otherwise determine, to the extent a Free Standing SAR is exercisable, it will be exercised automatically 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 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 a condition that the SAR may be exercised only in accordance with rules and regulations adopted from time to time, as the Committee 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 Committee and provided in the applicable Agreement).
ARTICLE VIII     
 
RESTRICTED SHARES
8.1    Grant. Subject to the limitations of the Plan, the Committee shall designate those eligible Persons to be granted Awards of Restricted Shares, shall determine the time when each such Award shall be granted, 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 Committee shall determine the price 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. All determinations made by the Committee pursuant to this Section 8.1 shall be specified in the Agreement.
8.2    Award of Restricted Shares. An Award of Restricted Shares may be registered electronically in the name of the Holder to whom such Restricted Shares shall have been awarded. During the Restriction Period, any electronically registered 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 

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Agreement. Any such electronically registered Restricted Shares and Retained Distributions shall remain in the custody of the Company or its designee, and the Holder shall deposit with the custodian share powers or other instruments of assignment, each endorsed in blank, so as to permit transfer to any employee benefit trust established by the Company or its Subsidiary or to such other entity or employee, as determined by the Committee in its sole discretion, 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.
8.3    Restrictions. Restricted Shares shall constitute issued and outstanding Shares of the applicable class of Shares 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 Committee 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 class of Shares with respect to such Restricted Shares; except, that, unless otherwise determined by the Committee and provided in the applicable Agreement, (i) the Holder will not be entitled to delivery of any electronically registered Restricted Shares until the Restriction Period shall have expired and unless all other vesting requirements with respect thereto shall have been fulfilled or waived; (ii) the Company or its designee will retain custody of any electronically registered Restricted Shares during the Restriction Period as provided in Section 8.2; (iii) other than such dividends and distributions as the Committee may designate, the Company or its designee may 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; (iv) the Holder may not sell, assign, transfer, pledge, exchange, encumber or dispose of the Restricted Shares or any Retained Distributions or his or her interest in any of them during the Restriction Period; and (v) a breach of any restrictions, terms or conditions provided in the Plan or established by the Committee 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    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, (i) all or the applicable portion of such Restricted Shares shall become vested and (ii) any Retained Distributions with respect to such Restricted Shares shall become vested to the extent that the Restricted Shares related thereto shall have become vested, in accordance with the terms of the applicable Agreement. Any such Restricted Shares and Retained Distributions that shall not become vested shall be forfeited and cancelled or deposited in an employee benefit trust established by the Company or its Subsidiary or to such other entity or employee as determined by the Committee, and the Holder shall not thereafter have any rights (including dividend and voting rights) with respect to such Restricted Shares and Retained Distributions that shall have been so forfeited. The Committee may, in its discretion, provide for the deferral of an Award of Restricted Shares and Retained Distributions, provided that any such deferral election of a recipient shall be filed in writing with the Committee in accordance with such rules and regulations, including any deadline for the making of such an election, as the Committee may provide, and shall be made in compliance with Section 409A of the Code to the extent applicable.

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ARTICLE IX     
RESTRICTED SHARE UNITS
9.1    Grant.  Subject to the limitations of the Plan, the Committee shall designate those eligible Persons to be granted Awards of Restricted Share Units, shall determine the time when each such Award shall be granted, and shall designate (or set forth the basis for determining) the Vesting Date or Vesting Dates for each such Award of Restricted Share Units, and may prescribe other restrictions, terms and conditions applicable to the vesting of such Restricted Share Units in addition to those provided in the Plan. The Committee shall determine the price to be paid by the Holder for the Restricted Share Units; provided, however, that the issuance of Shares in settlement of such Awards shall be made for at least the minimum consideration necessary to permit such Shares to be deemed fully paid. All determinations made by the Committee pursuant to this Section 9.1 shall be specified in the Agreement.
9.2    Restrictions with Respect to Restricted Share Units.  Any Award of Restricted Share Units, including any Shares which are represented by an Award of Restricted Share 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 Committee at the time of the Award. A breach of any restrictions, terms or conditions provided in the Plan or established by the Committee with respect to any Award of Restricted Share Units will cause a forfeiture of such Restricted Share Units and any Dividend Equivalents with respect thereto.
9.3    Award of Restricted Share Units.  An Award of Restricted Share Units shall not constitute issued and outstanding Shares, and the Holder shall not have any of the rights of a Shareholder with respect to any Shares represented by an Award of Restricted Share Units, in each case until Shares shall have been issued to the Holder as provided in Section 9.4. To the extent provided by the Committee in an Agreement, the Holder may be entitled to receive Dividend Equivalents with respect to an Award of Restricted Share Units, which may be subject to such restrictions, including, but not limited to, the rules applicable to Retained Distributions in Section 8.3 hereof, as the Committee shall determine.
9.4    Completion of Restriction Period.  On the Vesting Date with respect to each Award of Restricted Share Units and the satisfaction of any other applicable restrictions, terms and conditions, (i) all or the applicable portion of such Restricted Share Units shall become vested and Shares issued to the Holder therefor and (ii) any unpaid Dividend Equivalents with respect to such Restricted Share Units shall become vested and payable to the Holder to the extent that the Award related thereto shall have become vested, in accordance with the terms of the applicable Agreement. Any such Restricted Share Units and any unpaid Dividend Equivalents that shall not become vested shall be forfeited with no Shares issued therefor, and the Holder shall not thereafter have any rights with respect to such Restricted Share Units and any unpaid Dividend Equivalents that shall have been so forfeited. The Committee may, in its discretion, provide for the deferral of an Award of Restricted Share Units and unpaid Dividend Equivalents, provided that any such deferral election of a recipient shall be filed in writing with the Committee in accordance with such rules and regulations, including any deadline for the making of such an election, as the Committee 

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may provide, and shall be made in compliance with Section 409A of the Code to the extent applicable.
ARTICLE X     
 
PERFORMANCE AWARDS
10.1    Designation as a Performance Award. The Committee shall have the right to designate any Award of Options, SARs, Restricted Shares or Restricted Share Units as a Performance Award.
10.2    Performance Objectives. The grant or vesting of a Performance Award shall be subject to the achievement of Performance Objectives over a performance period established by the Committee based upon one or more of the following business criteria that apply to the Holder, one or more business units, divisions or Subsidiaries of the Company or the applicable sector of the Company, or the Company as a whole, and if so desired by the Committee, by comparison with a peer group of companies: increased revenue; net income measures (including income after capital costs and income before or after taxes); share price measures (including growth measures and total shareholder return); price per Share; market share; earnings per Share (actual or targeted growth); earnings before interest, taxes, depreciation, and amortization (EBITDA); economic value added (or an equivalent metric); market value added; debt to equity ratio; cash flow measures (including operating cash flow, operating free cash flow, free cash flow, cash flow return on capital, cash flow return on tangible capital, net cash flow and net cash flow before financing activities); return measures (including return on equity, return on average assets, return on capital, risk-adjusted return on capital, return on investors’ capital and return on average equity); operating measures (including operating income, funds from operations, cash from operations, after-tax operating income, sales volumes, production volumes and production efficiency); net promoter score or other metrics regarding quality or extent of customer satisfaction or service; expense measures (including overhead cost and general and administrative expense); margins; shareholder value; total shareholder return; proceeds from dispositions; total market value and corporate values measures (including ethics compliance, corporate responsibility, environmental and safety). Unless otherwise stated, such a Performance Objective need not be based upon an increase or positive result under a particular business criterion and could include, for example, maintaining the status quo or limiting economic losses (measured, in each case, by reference to specific business criteria). The Committee shall have the authority to determine whether the Performance Objectives and other terms and conditions of the Award are satisfied, and the Committee’s determination as to the achievement of Performance Objectives relating to a Performance Award shall be made in writing.
10.3    Section 162(m) of the Code. Notwithstanding the foregoing provisions, if the Committee intends for a Performance Award to be granted and administered in a manner designed to preserve the deductibility of the compensation resulting from such Award in accordance with Section 162(m) of the Code, then the Performance Objectives for such particular Performance Award relative to the particular period of service to which the Performance Objectives relate shall be established by the Committee in writing (i) no later than 90 days after the beginning of such period and (ii) prior to the completion of 25% of such period. 

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10.4    Waiver of Performance Objectives. The Committee shall have no discretion to modify or waive the Performance Objectives or conditions to the grant or vesting of a Performance Award unless such Award is not intended to qualify as qualified performance-based compensation under Section 162(m) of the Code and the relevant Agreement provides for such discretion.
ARTICLE XI     
GENERAL PROVISIONS
11.1    Acceleration of Awards.
(a)    Death or Disability. If a Holder’s employment with the Company and its Subsidiaries 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 and any related Retained Distributions shall become vested; and (iii) in the case of Restricted Share Units, each such Award of Restricted Share Units and any unpaid Dividend Equivalents shall become vested in full.
(b)    Approved Transactions; Board Change; Control Purchase. (i) 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: (A) 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; (B) 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 and any related Retained Distributions shall become vested; and (C) in the case of Restricted Share Units, each such Award of Restricted Share Units and any unpaid Dividend Equivalents 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. (ii) Notwithstanding the foregoing, unless otherwise provided in the applicable Agreement, the Committee 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 Committee, 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 class of Shares may be changed, converted or exchanged in connection with the Approved Transaction.

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11.2    Termination of Employment.
(a)    General. If a Holder’s employment with the Company and its Subsidiaries shall terminate prior to an Option or SAR becoming exercisable or being exercised (or deemed exercised, as provided in Section 7.2 or pursuant to a policy adopted under Section 6.5(a)) in full, or during the Restriction Period with respect to any Restricted Shares or prior to the vesting of any Restricted Share Units, then such Option or SAR shall thereafter become or be exercisable, and the Holder’s rights to any unvested Restricted Shares, Retained Distributions, any such unvested Restricted Share Units and unpaid Dividend Equivalents shall thereafter vest, in each case solely to the extent provided in the applicable Agreement; provided, however, that, unless otherwise determined by the Committee 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 employment 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 employment for cause will be treated in accordance with the provisions of Section 11.2(c).
(b)    Retirement. Notwithstanding the provisions of Section 11.2(a) to the contrary and unless otherwise determined by the Committee, if a Holder’s employment with the Company and its Subsidiaries is terminated due to Retirement during a Restriction Period applicable to any Restricted Shares or prior to any Option or SAR becoming exercisable or being exercised in full or prior to the vesting of any Restricted Share Units, then such Option or SAR shall thereafter become or be exercisable, and the Holder’s rights to any unvested Restricted Shares, Retained Distributions, any such unvested Restricted Share Units and unpaid Dividend Equivalents shall immediately vest to the extent that such Awards (including any Retained Distributions and unpaid Dividend Equivalents) would have become vested and exercisable had the Holder remained in continuous employment with the Company through the date that is one year after the date of the Holder’s Retirement.  Unless otherwise determined by the Committee and provided in the applicable Agreement, upon termination of a Holder’s employment with the Company and its Subsidiaries due to Retirement, Options and SARs that are vested and exercisable as of the date of the Holder’s Retirement shall remain exercisable until the first to occur of the date that is two years after the date of the Holder’s Retirement or the scheduled expiration of such Options or SARs.  Notwithstanding the foregoing and unless otherwise determined by the Committee, for purposes of any Performance Award, a Holder’s Retirement during the performance period applicable to such Performance Award shall have no effect on such Performance Award, provided that the additional one-year of vesting service described in this Section 11.2(b) shall apply to a Performance Award if a Holder’s Retirement occurs during a service period applicable to such Performance Award following completion of the performance period.
(c)    Termination for Cause. If a Holder’s employment with the Company and its Subsidiaries shall be terminated by the Company or a Subsidiary for “cause” during the Restriction Period with respect to any Restricted Shares or prior to any Option or SAR becoming exercisable or being exercised in full or prior to the vesting of any Restricted 

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Share Unit (for these purposes, “cause” shall have the meaning ascribed thereto in any employment agreement to which such Holder is a party or, in the absence thereof, shall include insubordination, dishonesty, incompetence, moral turpitude, other misconduct of any kind and the refusal to perform his or her 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 (or its equivalent under local law) for fraud, misappropriation, or embezzlement), then, unless otherwise determined by the Committee and provided in the applicable Agreement, (i) all Options and SARs and all unvested Restricted Share Units held by such Holder shall immediately terminate, and (ii) such Holder’s rights to all Restricted Shares, Retained Distributions, any unpaid Dividend Equivalents shall be forfeited immediately.
(d)    Miscellaneous. The Committee may determine whether any given leave of absence constitutes a termination of employment; provided, however, that for purposes of the Plan, (i) a leave of absence, duly authorized in writing by the Company for military service or sickness, or for any other purpose approved by the Company if the period of such leave does not exceed 90 days, and (ii) a leave of absence in excess of 90 days, duly authorized in writing by the Company provided the employee’s right to reemployment is guaranteed either by statute or contract, shall not be deemed a termination of employment. Unless otherwise determined by the Committee and provided in the applicable Agreement, Awards made under the Plan shall not be affected by any change of employment so long as the Holder continues to be an employee of the Company.
11.3    Right of Company to Terminate Employment. Nothing contained in the Plan or in any Award, and no action of the Company or the Committee with respect thereto, shall confer or be construed to confer on any Holder any right to continue in the employ of the Company or any of its Subsidiaries or interfere in any way with the right of the Company or any Subsidiary of the Company to terminate the employment of the Holder at any time, with or without cause, subject, however, to the provisions of any employment agreement between the Holder and the Company or any Subsidiary of the Company.
11.4    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.
11.5    Written Agreement. Each Award of Options shall be evidenced by a share option agreement; each Award of SARs shall be evidenced by a share appreciation rights agreement; each Award of Restricted Shares shall be evidenced by a restricted shares agreement; each Award of Restricted Share Units shall be evidenced by a restricted share units agreement; and each Performance Award shall be evidenced by a performance award agreement, each in such form and containing such terms and provisions not inconsistent with the provisions of the Plan as the Committee from time to time shall approve; provided, however, that if more than one type of 

17

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, Restricted Share Units or Performance Award 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 Committee deems appropriate to insure that the penalty provisions of Section 4999 of the Code will not apply to any Shares received by the Holder from the Company.  Any such Agreement may be supplemented or amended from time to time as approved by the Committee as contemplated by Section 11.7(b).
11.6    Nontransferability; Designation of Beneficiaries.
(a)    Nontransferability. Awards shall not be transferable other than as approved by the Committee and provided in the applicable Agreement, or 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, during the lifetime of the Holder Awards may be paid only to and exercised only by such Holder (or his or her court-appointed legal representative).
(b)    Designation of Beneficiaries. The Committee may, to the extent permissible and deemed to have operable effect under applicable law, permit a Holder to designate a beneficiary or beneficiaries with respect to Awards under the Plan by filing a written designation of beneficiary or beneficiaries with the Committee on a form and in such manner as the Committee may prescribe from time to time.
11.7    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 Committee.
(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 11.7(a)), the Committee may amend outstanding Agreements with any Holder, including 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 Committee 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 11.7(b) shall be construed to prevent the Committee from providing in any Agreement that the rights of the Holder with 

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respect to the Award evidenced thereby shall be subject to such rules and regulations as the Committee may, subject to the express provisions of the Plan, adopt from time to time or impair the enforceability of any such provision.
11.8    Government and Other Regulations. The obligation of the Company with respect to Awards shall be subject to all applicable laws, rules and regulations, including the Act, and to such approvals by any governmental agencies as may be required, including the effectiveness of any registration statement required under the U.S. Securities Act of 1933, and the rules and regulations of any securities exchange or association on which the Shares may be listed or quoted.  For so long as any class of Shares 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 U.S. Securities Act of 1933 with respect to all Shares of the applicable class 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.
11.9    Withholding.  The Company’s obligation to deliver Shares under the Plan shall be subject to applicable national, state and local tax and employee social security contribution withholding requirements.  National, state and local withholding tax and employee social security contribution withholding 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 Restricted Share Units or the satisfaction of the Performance Objectives applicable to a Performance Award, as appropriate, may, in the discretion of the Committee, be paid through the withholding of Shares otherwise issuable to such Holder (subject to compliance with applicable law, including, but not limited to, “financial assistance” prohibitions under UK law), upon such terms and conditions (including the conditions referenced in Section 6.5) as the Committee shall determine.  If the Holder shall fail to pay, or make arrangements satisfactory to the Committee for the payment to the Company of, all such national, state and local taxes and employee social security contributions 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 national, state or local taxes and employee social security contributions of any kind required to be withheld by the Company with respect to such Award.
11.10    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 the granting of Share options and the awarding of Shares otherwise than under the Plan, and such arrangements may be either generally applicable or applicable only in specific cases.
11.11    Exclusion from Pension and Profit-Sharing Computation. 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 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 Holder shall be deemed to have agreed that such Award will not affect the amount of any life insurance coverage, if any, 

19

provided by the Company on the life of the Holder which is payable to such beneficiary under any life insurance plan covering employees of the Company or any Subsidiary of the Company.
11.12    Unfunded Plan. Neither the Company nor any Subsidiary of the Company shall be required to segregate any Shares 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 employee shall have voting or other rights with respect to the Shares 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 or any other property, and the liabilities of the Company and any Subsidiary of the Company to any employee 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 the rights of any employee, former employee or beneficiary under the Plan shall be limited to those of a general creditor of the Company or the applicable Subsidiary of the Company, as the case may be. In its sole discretion, the Board may authorize the creation of trusts (including, without limitation, employee benefit 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.
11.13    Governing Law.  Except as otherwise set forth in an Agreement, the Plan and Awards shall be governed by, and construed in accordance with, the laws of England and Wales.  
11.14    Accounts. The delivery of any Shares shall be for the account of the Company or the applicable Subsidiary of the 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 11.9.
11.15    Legends. Shares subject to an Award shall bear or otherwise be subject to such legends as the Committee deems necessary or appropriate to reflect or refer to any terms, conditions or restrictions of the Award applicable to such Shares, including 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.
11.16    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.
11.17    Interpretation. The words “include,” “includes,” “included” and “including” to the extent used in the Plan shall be deemed in each case to be followed by the words “without limitation.”
11.18    Section 409A. The Plan and Awards are intended to be exempt from or compliant with the requirements of Code Section 409A and related regulations and United States Department of the Treasury pronouncements (“Section 409A”) to the extent that Section 409A is applicable to a Holder.  Notwithstanding anything in this Plan to the contrary, if any Plan provision or Award 

20

under the Plan would result in the imposition of an additional tax under Section 409A, that Plan provision or Award will be reformed to be exempt from Section 409A or comply with the requirements of Section 409A, and no such action taken shall be deemed to adversely affect the Holder’s rights to an Award.

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ANNEX 1

This Annex 1 to the Liberty Global 2014 Incentive Plan governs Cash Awards and Awards granted under the Plan that are payable in cash, Shares or any combination thereof.  Any Awards granted pursuant to this Annex 1 are subject to all of the terms and conditions set forth in the Plan except as modified by the following provisions, which shall replace and/or supplement certain provisions of the Plan, as indicated below.  Any Award that may be settled in cash or in a combination of cash and Shares shall be granted only under an Annex to the Plan.  

ARTICLE I
1.    The following paragraph shall replace Section 1.1 of the Plan:
1.1    Purpose.  The purpose of this Annex 1 of the Plan is to promote the success of the Company by providing a method whereby eligible Persons may be awarded additional remuneration for services rendered that are payable in cash, Shares or any combination thereof, thereby encouraging them to remain in the service of the Company or its Subsidiaries, and increasing their personal interest in the continued success and progress of the Company and its Subsidiaries.    

ARTICLE II

2.1    Certain Defined Terms.  Capitalized terms used in this Annex 1 shall have the same definitions as set forth in the Plan except for the following terms:  

“Agreement” means a share option agreement, share appreciation rights agreement, restricted share agreement, restricted share unit agreement, cash award agreement or an agreement evidencing more than one type of Award, specified in Section 11.5, as such Agreement may be supplemented or amended from time to time.

“Award” means a grant of Options, SARs, Restricted Shares, Restricted Share Units, Performance Awards, Cash Awards and/or cash amounts under the Plan.

“Cash Award” means an Award made pursuant to Section 10.5 of the Plan to the Holder that is paid solely on account of attainment of one or more Performance Objectives that have been pre-established by the Committee.

“Restricted Share Unit” means a unit representing the right to receive one Share or the equivalent value in cash that is subject to a Restriction Period and awarded pursuant to Article IX.

ARTICLE III

3.2    Powers.  The following sentence shall replace the first sentence of Section 3.2 for purposes of Awards granted under this Annex 1:

    

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The Committee 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, Restricted Share Units under Article IX of the Plan, Cash Awards under this Annex 1 and Article X of the Plan and/or Performance Awards under Article X 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, this Annex 1 and any Agreements relating to Awards granted under the Plan, to adopt sub-plans under the Plan or special terms for Awards granted to Persons in countries outside the United Kingdom and the United States, to enter into arrangements with the trustee of any employee benefit trust established by the Company or any of its Affiliates to facilitate the administration of Awards under the Plan, and to supervise the administration of the Plan.

ARTICLE IV

4.1    Number of Shares; Award Limits.  The following paragraph shall supplement Section 4.1 for purposes of Awards granted under this Annex 1:

Notwithstanding the foregoing, Shares subject to any Award that are settled for cash shall again be available for purposes of the Plan.  In addition, no Person shall receive payment for Cash Awards during any calendar year aggregating in excess of $10,000,000 U.S. dollars.

4.2    Adjustments.  The following paragraph shall supplement Section 4.2 for purposes of Awards granted under this Annex 1:

The Committee may, if deemed appropriate, provide for a cash payment to any Holder of an Award in connection with any adjustment made pursuant to Section 4.2.

ARTICLE V

5.1    General.  The following shall replace Section 5.1 for purposes of Awards granted under this Annex 1:

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 employees (including officers and directors) of the Company or its Subsidiaries or such other Persons eligible under Annex 2 as the Committee shall select.  Awards may be made to Persons who hold or have held Awards under the Plan or any similar or other awards under any other plan of the Company or any of its Affiliates.  For purposes of this Section 5.1, Subsidiary shall mean a subsidiary within the meaning of Section 1159 of the Act.

ARTICLE VII

7.4    Consideration. The following paragraph shall supplement Section 7.4 for purposes of Awards granted under this Annex 1:

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Notwithstanding the foregoing, the Committee may permit the Holder of a SAR who is not subject to United States federal income tax to be paid consideration in the form of cash, or a combination of cash and the applicable class of Shares with respect to which the SAR was granted.  

ARTICLE VIII

8.3    Restrictions.  The last three clauses of the last sentence of Section 8.3 shall be deleted for purposes of Awards granted under this Annex 1.

8.4    Completion of Restricted Period.  The following clause (iii) shall supplement the first sentence of Section 8.4 for purposes of Awards granted under this Annex 1:

 and (iii) any cash amount 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.

8.4    Completion of Restricted Period.  The following paragraph shall supplement Section 8.4 for the purposes of Awards granted under this Annex 1:

The Committee may, in its discretion, provide for the deferral of any cash amounts related to an Award of Restricted Shares and Retained Distributions, provided that any such deferral election of a recipient shall be filed in writing with the Committee in accordance with such rules and regulations, including any deadline for the making of such an election, as the Committee may provide, and shall be made in compliance with Section 409A of the Code to the extent applicable.

8.5    Cash Payments. The following Section 8.5 shall supplement Article VIII for purposes of Awards granted under this Annex 1:

8.5    Cash Payments.  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 after such Restricted Shares shall have become vested.  Such cash amounts shall be payable in accordance with such additional restrictions, terms and conditions as shall be prescribed by the Committee in the Agreement and shall be in addition to any other salary, incentive, bonus or other compensation payments which such Holder shall be otherwise entitled or eligible to receive from the Company.

ARTICLE IX

9.3    Restrictions.  The last three clauses of the last sentence of Section 9.3 shall be deleted for purposes of Awards granted under this Annex 1.

9.4    Completion of Restricted Period.  The following clause (iii) shall supplement the first sentence of Section 9.4 for purposes of Awards granted under this Annex 1:

 and (iii) any cash amount to be received by the Holder with respect to such Restricted Share Units shall become payable, all in accordance with the terms of the applicable Agreement.

    

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9.4    Completion of Restricted Period.  The following paragraph shall supplement Section 9.4 for the purposes of Awards granted under this Annex 1:

The Committee may, in its discretion, provide for the deferral of any cash amounts related to an Award of Restricted Share Units and unpaid Dividend Equivalents, provided that any such deferral election of a recipient shall be filed in writing with the Committee in accordance with such rules and regulations, including any deadline for the making of such an election, as the Committee may provide, and shall be made in compliance with Section 409A of the Code to the extent applicable.

9.5    Cash Payments. The following Section 9.5 shall supplement Article IX for purposes of Awards granted under this Annex 1:

9.5    Cash Payments.  In connection with any Award of Restricted Share Units, an Agreement may provide for the payment of a cash amount to the Holder of such Restricted Share Units after such Restricted Share Units shall have become vested.  Such cash amounts shall be payable in accordance with such additional restrictions, terms and conditions as shall be prescribed by the Committee in the Agreement and shall be in addition to any other salary, incentive, bonus or other compensation payments which such Holder shall be otherwise entitled or eligible to receive from the Company.

ARTICLE X

10.2    Designation as a Performance Award.  The following sentence shall supplement Section 10.2 for purposes of Awards granted under this Annex 1:

All Cash Awards shall be designed as Performance Awards.

10.5    Cash Awards.  The following Section 10.5 shall supplement Article 10 for purposes of Awards granted under this Annex 1:

10.5    Cash Awards.  In addition to granting Options, SARs, Restricted Shares and Restricted Share Units, the Committee shall, subject to the limitations of the Plan and this Annex 1, have authority to grant to eligible Persons Cash Awards.  Each Cash Award shall be subject to such terms and conditions, restrictions and contingencies as the Committee shall determine.  Restrictions and contingencies limiting the right to receive a cash payment pursuant to a Cash Award shall be based upon the achievement of single or multiple Performance Objectives over a performance period established by the Committee.  The determinations made by the Committee pursuant to this Section 10.5 and this Annex 1 shall be specified in the applicable Agreement.  
    
ARTICLE XI

11.1(a)     Death or Disability.  The following sentence shall supplement Section 11.1(a) for purposes of Awards granted under this Annex 1:

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Upon the deemed expiration of the Restriction Period applicable to each such Award of Restricted Shares in connection with the Holder’s termination of employment by reason of death or Disability, any related cash amounts payable pursuant to the applicable Agreement shall be adjusted in such manner as may be provide in the Agreement.

11.1(b)     Approved Transactions; Board Change; Control Purchase.  The following paragraph shall supplement Section 11.1(b) for purposes of Awards granted under this Annex 1:

Upon the deemed expiration of the Restriction Period applicable to each such Award of Restricted Shares in connection with any Approved Transaction, Board Change or Control Purchase, unless the applicable Agreement provides otherwise, any related cash amounts payable pursuant to the applicable Agreement shall be adjusted in such manner as may be provided in the Agreement.  The effect, if any, on a Cash Award of an Approved Transaction, Board Change or Control Purchase shall be prescribed in the applicable Agreement.

11.2(a)     General.  The following paragraph shall supplement Section 11.2(a) for purposes of Awards granted under this Annex 1:

If the Holder’s employment with the Company and its Subsidiaries shall terminate during the Restriction Period with respect to any Restricted Shares or Restricted Share Units, the Holder’s rights to any related cash amounts shall thereafter vest solely to the extent provided in the applicable Agreement.  The effect on a Cash Award of the termination of a Holder’s employment for any reason, other than for cause, shall be prescribed in the applicable Agreement.  

11.2(b)     Retirement.  The following paragraph shall supplement Section 11.2(b) for purposes of Awards granted under this Annex 1:

If the Holder’s employment with the Company and its Subsidiaries shall terminate due to Retirement during the Restriction Period with respect to any Restricted Shares or Restricted Share Units or prior to the payment of a Cash Award, the Holder’s rights to any cash amounts related to such Award of Restricted Shares or Restricted Share Units and the Cash Award shall thereafter vest as determined under Section 11.2(b) unless otherwise provided in the applicable Agreement.  

11.2(c)     Termination for Cause.  The following paragraph shall supplement Section 11.2(c) for purposes of Awards granted under this Annex 1:

If the Holder’s employment with the Company and its Subsidiaries shall be terminated by the Company or the Subsidiary for “cause” (as defined in Section 11.2(c) of the Plan), then, unless otherwise determined by the Committee and provided in the applicable Agreement, all (i) unpaid Cash Awards held by such Holder shall immediately terminate, and (ii) all cash amounts related to Restricted Shares or Restricted Share Units shall be forfeited immediately.

11.5    Written Agreement.  The following paragraph shall supplement Section 11.5 for the purposes of Awards granted under this Annex 1:

26

Each Cash Award shall be evidenced by a cash award agreement in such form and containing such terms and provisions not inconsistent with the provisions of the Plan as the Committee from time to time shall approve.  If more than one type of Award is granted to the one Holder, the cash award agreement may be separate from the Agreements evidencing such other types of Awards or may evidence the other types of Awards granted to such Holder.  Any such Agreement may contain such provisions as the Committee deems appropriate and may be supplemented or amended from time to time as approved by the Committee and contemplated by Section 11.7(b).  

11.9    Withholding.  The following sentence shall supplement Section 11.9 for purposes of Awards granted under this Annex 1:

The foregoing powers of the Company and the Committee with respect to withholding for taxes shall apply to Cash Awards or cash amounts paid in settlement of any Award (or portion thereof) under the Plan.

11.12    Unfunded Plan.  The following sentence shall supplement Section 11.12 for purposes of Awards granted under this Annex 1:

Neither the Company nor any Subsidiary of the Company shall be required to segregate any cash which may at any time be represented by Awards, and the Plan shall constitute an “unfunded” plan for the Company.  

11.14    Accounts.  The following sentence shall supplement Section 11.14 for purposes of Awards granted under this Annex 1:

The payment of any cash amounts payable in respect of an Award shall be for the account of the Company or the applicable Subsidiary of the Company, as the case may be, and any such payment shall not be made until the recipient shall have paid or made satisfactory arrangements for the payment of any applicable taxes as provided in Section 11.9.

27

ANNEX 2

This Annex 2 to the Liberty Global 2014 Incentive Plan governs Awards granted to independent contractors under the Plan or Annex 1.  Any Awards granted pursuant to this Annex 2 are subject to all of the terms and conditions set forth in the Plan and Annex 1, as applicable, except as modified by the following provisions, which shall replace and/or supplement certain provisions of the Plan and Annex 1, as indicated below.

ARTICLE I

The following paragraph shall replace Section 1.1 of the Plan:
1.1    Purpose. The purpose of this Annex 2 of the Plan is to promote the success of the Company by providing a method whereby independent contractors providing services to the Company and its Subsidiaries may be awarded additional remuneration for services rendered and encouraged to invest in capital shares of the Company, thereby increasing their proprietary interest in the Company’s businesses, encouraging them to remain in the service of the Company or its Subsidiaries, and increasing their personal interest in the continued success and progress of the Company and its Subsidiaries. The Plan is also intended to aid in inducing independent contractors to agree to provide services to the Company and its Subsidiaries.   

ARTICLE III

3.2    Powers.  The following sentence shall supplement Section 3.2 for purposes of Awards granted under this Annex 2:

In making determinations hereunder, the Committee may take into account the nature of the services rendered by the independent contractors, their present and potential contributions to the success of the Company and its Subsidiaries, and such other factors as the Committee in its discretion deems relevant.

ARTICLE V

5.1    General.  The following shall replace Section 5.1 for purposes of Awards granted under this Annex 2:

5.1    General.  The Persons who shall be eligible to participate in the Plan to receive Awards under the Plan and Annex 1 shall, subject to Section 5.2, be such Persons who are independent contractors of the Company or its Subsidiaries as the Committee shall select.  Awards may be made to independent contractors who hold or have held Awards under the Plan or Annex 1 or any similar or other awards under any other plan of the Company or any of its Affiliates.  For purposes of this Section 5.1, Subsidiary shall mean a subsidiary within the meaning of Section 1159 of the Act.

28

ARTICLE VI

6.3    Term of Options.  References in Section 6.3 to “employment” shall be replaced with references to “service” for purposes of Awards granted under this Annex 2.

ARTICLE VII

7.1    Grant of SARs.  References in Section 7.1 to “employee” shall be replaced with references to “independent contractor” for purposes of Awards granted under Annex 2.

7.3    Free Standing SARs.  References in Section 7.3 to “employment” shall be replaced with references to “service” for purposes of Awards granted under Annex 2.

ARTICLE IX

9.2    Rules.  References in Section 9.2(c) to “employee” shall be replaced with references to “independent contractor” and references to “employment” shall be replaced with references to “service” for purposes of Awards granted under this Annex 2.

ARTICLE XI

11.1(a)    Death or Disability.  References in Section 11.1(a) to “employment” shall be replaced with references to “service” for purposes of Awards granted under this Annex 2.

11.2    Termination of Service.  Section 11.2(b) shall be deleted for purposes of Awards granted under this Annex 2.  References in Sections 11.2(a), 11.2(c) and 11.2(d) to “employment” shall be replaced with references to “service” and references in Section 11.2(d) to “employee” shall be replaced with references to “independent contractor” for purposes of Awards granted under this Annex 2.

11.3    Right of Company to Terminate Service.  References in Section 11.3 to “employment” and “employ” shall be replaced by references to “service” for purposes of Awards granted under this Annex 2.

11.12    Unfunded Plan.  References in Section 11.12 to “employee” shall be replaced by references to “independent contractor” for purposes of Awards granted under this Annex 2, provided, however, that references to an “employee benefit trust” shall remain unchanged.

29LG-2015.3.31.15-Ex_10.4

EXHIBIT 10.4
	
			
	Dated February 24, 2015

	 

	 
	Virgin Media Inc.
	 

	 
	 
	 

	
	
	 

	RULES

OF THE

VIRGIN MEDIA INC.

2015 SHARESAVE PLAN 

	 

	 

	 

CONTENTS

	
			
	CLAUSE
	PAGE

	 
	 
	 

	1.
	DEFINITIONS, INTERPRETATION, INTRODUCTION AND PURPOSE OF THE PLAN
	1

	 
	 
	 

	2.
	GRANT OF OPTIONS
	4

	 
	 
	 

	3.
	SCALING DOWN
	6

	 
	 
	 

	4.
	LIMITATIONS ON EXERCISE OF OPTIONS
	6

	 
	 
	 

	5.
	TIME FOR EXERCISE OF OPTIONS
	6

	 
	 
	 

	7.
	REPLACEMENT OF OPTIONS ON CHANGE OF CONTROL OF LIBERTY GLOBAL
	10

	 
	 
	 

	8.
	EXERCISE OF OPTIONS
	11

	 
	 
	 

	9.
	VARIATIONS IN THE CAPITAL OF LIBERTY GLOBAL
	12

	 
	 
	 

	10.
	EARLY REPAYMENT OR DEFAULT UNDER SAVINGS CONTRACT
	13

	 
	 
	 

	11.
	ADMINISTRATION OF THE PLAN
	13

	 
	 
	 

	12.
	AMENDMENT OF THE PLAN
	13

	 
	 
	 

	13.
	GENERAL PROVISIONS
	14

VIRGIN MEDIA INC.
VIRGIN MEDIA INC. 2015 SHARESAVE PLAN
		
	1.
	DEFINITIONS, INTERPRETATION, INTRODUCTION AND PURPOSE OF THE PLAN

		
	1.1
	Definitions and Interpretation

In the Plan:
"Acquiring Company" means a company which is an acquiring company as defined in paragraph 38(2) of Schedule 3;
"Adoption Date" means 1 March 2014, being the date on which the Liberty Global 2014 Plan was adopted by Liberty Global;
"Associated Company" means a company which is an associated company of the Company as defined in paragraph 47(1) of Schedule 3;
"Bonus" means any sum payable as a final bonus under a Savings Contract being any additional payment made by the Savings Authority once all monthly contributions have been made by a Participant when repaying contributions made under either a Three-Year Savings Contract or a Five-Year Savings Contract;
"Bonus Date" means the earliest date on which the Bonus is or would be payable under the relevant Savings Contract;
"Company" means Virgin Media Inc. which is the Scheme Organiser and which is also the parent scheme company for the purposes of the Plan;
"Control" means the control of a company within the meaning of section 995 of the Tax Act and for the purposes of clause 6 a person is deemed to have control of a company if he or she and others acting in concert with him or her have together obtained control of the company within the meaning of section 995 of the Tax Act;
"Controlling Company" means a company other than Liberty Global and an Acquiring Company which has control of Liberty Global or the Acquiring Company as referred to in paragraph 39 of Schedule 3;
"Dealing Day" means a day on which transactions take place on the NASDAQ or, if relevant, any other recognised exchange on which Shares are traded;
"Eligible Employee" means any employee or director of one or more members of the Participating Group who:
		
	(a)
	is chargeable to tax on the earnings from his or her office or employment under section 15 of ITEPA; and

		
	(b)
	has been a director or employee of a member of the Participating Group for any qualifying period determined by the VM Board being a period starting no earlier than five years before the Grant Date; and

the VM Board may waive either or both clauses (a) or (b) in any particular case;
"Exercise Price" means the price for a Share converted into UK £ sterling using the Wall Street Journal's closing exchange rate on the Grant Date payable on the exercise of an Option as specified by the VM Board which must not be less than the greater of:

- 2 -

		
	(a)
	the nominal value of a Share if Shares are to be subscribed; and

		
	(b)
	eighty per cent of the Market Price of a Share on the Grant Date or the Market Price at any other time or times as may be previously agreed in writing with HMRC and if permitted under the Liberty Global 2014 Plan; 

"Five-Year Savings Contract" means a Savings Contract under which a Participant agrees to make 60 monthly contributions;
"Grant Date" means the date on which an Option is granted or is to be granted under clause 2;
"HMRC" means HM Revenue & Customs;
"Invitation Date" means the date on which the VM Board invites Eligible Employees to apply for Options under clause 2.1;
"ITEPA" means the Income Tax (Earnings and Pensions) Act 2003;
"LG Board" means the board of directors of Liberty Global or a duly authorised committee of the board of directors of Liberty Global;
"Liberty Global" means Liberty Global plc (Registered Number 08379990);
"Liberty Global 2014 Plan" means the Liberty Global 2014 Incentive Plan;
"Market Price" means the market value of a Share on any day, being:
		
	(a)
	if and for as long as the Shares are traded on the NASDAQ the last sale price (or, if no last sale price is reported, the average of the high bid price and low asked prices) for a Share for that day (or, if such day is not a trading day, on the next preceding trading day); or

		
	(b)
	in all other cases, the market value determined in accordance with Part VIII of the Taxation of Chargeable Gains Act 1992 and agreed in writing in advance with HMRC;

"Misconduct" means the behaviour of a Participant resulting in the termination of his or her office and/or employment with the Company or any Associated Company as a result of the relevant company terminating the Participant's employment by applying any of the provisions for summary dismissal in the Participant's service contract with that company;  
"NASDAQ" means the NASDAQ Global Select Market;
"Non-UK Company Reorganisation" means a non-UK company reorganisation arrangement as defined in paragraph 47A of Schedule 3;
"Operative Period" means the period of ten years starting on the Adoption Date;
"Option" except as provided in clause 7, means a right to buy Shares under the Plan;
"Option Period" means for an Option the period of six months during which the Option is exercisable under the Plan starting on the Bonus Date applicable to the Savings Contract related to the Option;
"Participant" means a person who has been granted an Option including his or her personal representative;

- 3 -

"Participating Group" means the Company and those of the Subsidiaries that the VM Board has resolved may participate in the Plan and "member of the Participating Group" means any one of those Subsidiaries;
"Plan" means the Virgin Media Inc. 2015 Sharesave Plan constituted by this document established by the Company as the Scheme Organiser for the purposes of Schedule 3 and which is a sub-plan of the Liberty Global 2014 Plan;
"Savings Authority" means the provider of the Savings Contracts as nominated by the VM Board for the purposes of the Plan;
"Savings Contract" means a contract under which regular monthly contributions are paid to the Savings Authority under a certified SAYE savings arrangement which is an approved savings arrangement under paragraph 24 of Schedule 3;
"Schedule 3" means Schedule 3 to ITEPA;
"Schedule 3 SAYE option scheme" means an SAYE option scheme which satisfies the requirements of Parts 2 to 7 of Schedule 3;
"Scheme Organiser" means the scheme organiser as defined in paragraph 2(2) of Schedule 3;
"Shares" except as provided in clauses 6 and 7.3(a), means Class C ordinary shares in the capital of Liberty Global which satisfy the conditions referred to in Part 4 of Schedule 3;
"Subsidiary" means any company which is:
		
	(a)
	under the Control of the Company; and  

		
	(b)
	a subsidiary of the Company within the meaning of section 1159 of the Companies Act 2006;

"Tax Act" means the Income Tax Act 2007;
"Three-Year Savings Contract" means a Savings Contract under which a Participant agrees to make 36 monthly contributions;
"TUPE regulations" means the Transfer of Undertakings (Protection of Employment) Regulations 2006; and
"VM Board" means the board of directors of the Company or a duly authorised committee of the board of directors of the Company.
Any reference to a statutory provision includes a reference to that provision as amended or re-enacted.  The singular includes the plural and the other way round and the masculine gender includes the feminine and the other way round.
		
	1.2
	Introduction

On 24 February 2015 the shareholders of Liberty Global approved an amendment to the Liberty Global 2014 Plan to permit the grant of Options to acquire Shares to Eligible Employees with an Exercise Price per Share of not less than 80% of the fair market value of a Share on the Grant Date.  The LG Board approved the adoption of the 2015 Virgin Media Inc. Sharesave Plan by the Company as a sub-plan to the Liberty Global 2014 Plan.  The rules of the Plan, comply with the requirements of Schedule 3 to ITEPA to ensure that the Plan qualifies as a Schedule 3 SAYE option scheme and so that Participants will be eligible to benefit from sections 516 to 519 of ITEPA.   The rules of the 

- 4 -

Liberty Global 2014 Plan apply to the Plan unless the rules of the Plan expressly or by implication provide to the contrary but so that nothing in either the rules of the Liberty Global 2014 Plan or the rules of the Plan will operate to prejudice the status of the Plan as a Schedule 3 SAYE option scheme.
		
	1.3
	Purpose of the Plan

The purpose of the Plan is to provide benefits for employees and directors of the Participating Group in the form of share options in accordance with Schedule 3.  The Plan does not provide benefits to employees or directors of the Participating Group otherwise than in accordance with Schedule 3.
		
	2.
	GRANT OF OPTIONS

		
	2.1
	Invitations

The VM Board may decide whether or not to operate the Plan at any time by offering Options to Eligible Employees.  If the VM Board decides at any time to offer Options to Eligible Employees, the VM Board must first obtain consent from the LG Board to do so and the LG Board must confirm the maximum number of Shares available for the offer of Options under the Plan on that occasion.  If the VM Board decides to offer Options under the Plan and the LG Board consents, the VM Board must invite each Eligible Employee to apply for an Option.  The VM Board may send an invitation to every person who is or who will become an Eligible Employee by the relevant Grant Date, to apply for an Option at the Exercise Price, for up to the maximum number of Shares, the exercise monies for which can be provided from the repayment to be made and the Bonus payable under a Savings Contract in accordance with the terms of the Plan.  The invitation must:
		
	(a)
	include details of eligibility;

		
	(b)
	include details of how the Exercise Price will be determined on the Grant Date and notified to Eligible Employees;

		
	(c)
	include the date by which applications made under clauses 2.2 and 2.3 must be received; 

		
	(d)
	include details of:

		
	(i)
	the maximum aggregate monthly contribution permitted under Schedule 3 being the lower of £500 (or any other maximum amount specified in paragraph 25(3)(a) of Schedule 3) and if lower and if relevant the maximum monthly contribution (or maximum aggregate monthly contribution) determined by the VM Board for the invitation (being a multiple of £1 and not less than £5); and/or

		
	(ii)
	any requirement determined by the VM Board as to participation such as variations based on levels of remuneration, length of service or similar factors to be applied to the invitation and which comply with the requirements of Schedule 3;

		
	(e)
	state if Eligible Employees can choose to enter into:

		
	(i)
	a Three-Year Savings Contract only;

		
	(ii)
	a Five-Year Savings Contract only; or

		
	(iii)
	either a Three-Year Savings Contract or a Five-Year Savings Contract or both; 

- 5 -

		
	(f)
	state if Eligible Employees are allowed to include any Bonus in the repayment under the Savings Contract for the exercise of an Option; and

(g)    state the maximum number of Shares over which Options may be granted if any.
		
	2.2
	Agreement to be bound by the rules of the Plan

An invitation to apply for an Option is personal to the Eligible Employee to whom it is issued and is made on the basis that if an Eligible Employee decides to participate in the Plan he or she agrees to be bound by the rules of the Plan.  The invitation must be accepted in the manner and within the period the VM Board specifies which must be a period of not less than 14 days nor more than 25 days from the Invitation Date.
		
	2.3
	Undertaking to pay contributions

On applying for an Option by accepting an invitation an Eligible Employee must:
		
	(a)
	undertake to make:

		
	(i)
	36 regular monthly contributions in the case of a Three-Year Savings Contract; or

		
	(ii)
	60 regular monthly contributions in the case of a Five-Year Savings Contract,

of the amount which must be a multiple of £1 and not less than £5 as specified in his or her acceptance;
		
	(b)
	state that his or her proposed monthly contribution when aggregated with any contributions payable by the Eligible Employee under any existing savings contract will not exceed the maximum permitted monthly contribution or aggregate monthly contribution as specified in the invitation;

		
	(c)
	choose whether the Bonus, if relevant, is included in the sum to be used to pay for Shares on exercise of an Option; and

		
	(d)
	authorise the company by which he or she is employed to deduct the specified amount on a weekly, fortnightly, four weekly or monthly basis from his or her wages or salary and to pay it to the Savings Authority.

		
	2.4
	Applications

Each Eligible Employee's application will be treated as an application for an Option over the greatest number of Shares which the Eligible Employee could buy at the relevant Exercise Price with an amount equal to the expected repayment under the related Savings Contract.
		
	2.5
	Grant of Options

Except as provided in clause 3, the Company must grant Options to all Eligible Employees from whom valid applications have been received on a date which is no later than the thirtieth day after the date of the first Dealing Day taken for the purposes of calculating the relevant Exercise Price.  The grant of an Option must be evidenced in writing in the form specified by the VM Board.  The Option is personal to the Participant and may not be transferred to or exercised by any other person except his or her personal representative under clause 5.2. 

- 6 -

		
	2.6
	Life of the Plan

Options may only be granted under the Plan during the Operative Period.
		
	3.
	SCALING DOWN

		
	3.1
	If the VM Board receives applications for Options over a total number of Shares which would, if granted, exceed the maximum number of Shares determined by the VM Board under clause 2.1 or the limit in Section 4.1 of the Liberty Global 2014 Plan, then the VM Board must adjust individual applications downwards on a proportionate basis or on any other basis which complies with the requirements of Schedule 3.

		
	3.2
	If the VM Board has to adjust applications downwards then:

		
	(a)
	if possible, every applicant who so wishes should be able to participate at least to the extent represented by a minimum monthly contribution of £5 under the Savings Contract;

		
	(b)
	if there are insufficient Shares available even for Options based on the minimum monthly contribution to be granted to every applicant, then Options based on the minimum monthly contribution must be granted to those applicants who are selected at random in a ballot conducted by the VM Board; and

		
	(c)
	the Company must grant the resulting Options no later than 42 days after the date of the first Dealing Day taken for the purposes of calculating the relevant Exercise Price.

		
	4.
	LIMITATIONS ON EXERCISE OF OPTIONS

		
	4.1
	Exercise

Except as provided in clauses 5 or 6, only a Participant who is a director or an employee of a company in a Participating Group may exercise an Option.
		
	4.2
	Lapse on transfer of Option

If a Participant acts in a way that causes, or will cause, him or her to be deprived of the legal or beneficial ownership of an Option then, other than if the Participant dies, the Option lapses.
		
	5.
	TIME FOR EXERCISE OF OPTIONS

		
	5.1
	Time for exercise

Except as provided in clauses 5.2 to 5.7 inclusive and clause 6, a Participant may only exercise an Option during the Option Period.  Except as provided in clause 5.2, an Option which is not exercised before the end of the Option Period lapses.
		
	5.2
	Death

If a Participant dies:
		
	(a)
	before the relevant Bonus Date his or her personal representative may exercise any of the Participant's Options at any time within 12 months after his or her death; or

		
	(b)
	after the relevant Bonus Date but before the expiry of the Option Period his or her personal representative may exercise any Option of his or hers then subsisting at any time within 12 months after the Bonus Date.

- 7 -

The maximum number of Shares over which the Option may be exercised is limited to the number of Shares which may be bought at the Exercise Price with an amount equal to the proceeds of the related Savings Contract.  If the Option is not exercised it lapses.
		
	5.3
	Cessation of office or employment - good leaver

Except as provided in clause 5.2, if a Participant ceases to hold the office or employment by virtue of which he or she is an Eligible Employee because of:
		
	(a)
	injury;

		
	(b)
	disability; 

		
	(c)
	redundancy within the meaning of the Employment Rights Act 1996; 

		
	(d)
	retirement;

		
	(e)
	a relevant transfer within the meaning of the TUPE Regulations;

		
	(f)
	a transfer of a business or part of a business which is transferred to a person who is not an Associated Company and the transfer is not a relevant transfer within the TUPE Regulations; or

		
	(g)
	an Associated Company ceasing to be an Associated Company by reason of a change of control (as determined in accordance with sections 450 and 451 of the Corporation Tax Act 2010) where the Participant holds office with or is employed by an Associated Company,

the Participant may exercise any Option then subsisting at any time within six months after the cessation of office or employment or before the expiry of the Option Period, whichever is the earlier.  The maximum number of Shares over which the Option may be exercised is limited to the number of Shares which may be bought at the Exercise Price with an amount equal to the proceeds of the related Savings Contract.  If the Option is not exercised it lapses.
		
	5.4
	Cessation of office or employment - leavers after three years

Except as provided in clause 5.2, if:
		
	(a)
	a Participant ceases to hold the office or employment by virtue of which the Participant is an Eligible Employee other than for a reason specified in clauses 5.2 and 5.3 and not because of the Participant's Misconduct; and

		
	(b)
	the Participant has held his or her Option for at least three years,

the Participant may exercise his or her Option within six months after the cessation of office or employment or before the expiry of the Option Period, whichever is the earlier.   The maximum number of Shares over which the Option may be exercised is limited to the number of Shares which may be bought at the Exercise Price with an amount equal to the proceeds of the related Savings Contract.  If the Option is not exercised it lapses.
		
	5.5
	Cessation of office or employment - bad leavers

If a Participant ceases to hold the office or employment with the Company and any Associated Company by reason of Misconduct his or her Option will lapse on the date of the cessation. 

- 8 -

		
	5.6
	Date of cessation of office or employment

A Participant must not be treated as ceasing to hold the office or employment by virtue of which the Participant is an Eligible Employee until he or she ceases to hold any office or employment in the Company or any Associated Company.
		
	5.7
	Continuing office or employment within the Company's group 

A Participant who ceases to hold the office or employment by virtue of which the Participant is an Eligible Employee will be entitled to exercise his or her Option during the Option Period if at that time he or she holds an office or employment with the Company or with any Associated Company.
		
	6.
	TAKEOVERS AND LIQUIDATIONS

		
	6.1
	Control of Liberty Global

Clause 6.2 applies:
		
	(c)
	if any person obtains Control of Liberty Global as a result of making:

		
	(i)
	a general offer to acquire the whole of the issued ordinary share capital of Liberty Global (other than that which is already owned by that person) made on a condition which if satisfied will result in the person making the offer having Control of Liberty Global; or

		
	(ii)
	a general offer to acquire all the Shares (or those Shares not already owned by that person); or

		
	(d)
	if under section 899 of the Companies Act 2006 the Court sanctions a compromise or arrangement applicable to or affecting:

		
	(i)
	all the ordinary share capital of Liberty Global or all the Shares of the same class as the Shares to which the Option relates; or

		
	(ii)
	all the Shares, or all the Shares of that same class, which are held by a class of shareholders identified otherwise than by reference to their employment or directorships or their participation in an Schedule 3 SAYE option scheme;

		
	(e)
	if any person becomes bound or entitled to acquire Shares under sections 979 to 982 inclusive or sections 983 to 985 inclusive of the Companies Act 2006; or

		
	(f)
	if there is a Non-UK Company Reorganisation applicable to or affecting:

		
	(i)
	all the ordinary share capital of Liberty Global or all the same class as to the Shares to which the Option relates; or

		
	(ii)
	all the Shares, or all the Shares of that same class, which are held by a class of shareholders identified otherwise than by reference to their employments or directorships or their participation in a Schedule 3 SAYE option scheme.

		
	6.2
	Exercise of Options on change of Control

Except as provided in clause 5.2, a Participant may exercise his or her Option at any time before the first to end of the Option Period and the appropriate period as referred to in clause 6.3.  The maximum number of Shares over which the Option may be exercised is limited to the number of Shares which may be bought at the Exercise Price with an 

- 9 -

amount equal to the proceeds of the related Savings Contract.  Except as provided in clause 5.2, any Option which is not exercised lapses.  This clause 6.2 will not apply if a Participant agrees with an Acquiring Company to release his or her Option in consideration of the grant to him or her of a New Option under clause 7 before the end of the appropriate period referred to in clause 7.4.
		
	6.3
	Exercise period on change of Control

The appropriate period referred to in clause 6.2 is:
		
	(a)
	if clause 6.1(a) applies:

		
	(i)
	and the Shares no longer meet the requirements of Part 4 of Schedule 3, a period of 20 days starting on the date when the person making the offer obtains Control of Liberty Global; or

		
	(ii)
	a period of six months starting on the date when the person making the offer obtains Control of Liberty Global and any condition subject to which the offer is made is satisfied;

		
	(b)
	if clause 6.1(b) applies:

		
	(iii)
	and the Shares no longer meet the requirements of Part 4 of Schedule 3, a period of 20 days starting on the date when the person obtains Control of Liberty Global as a result of the compromise or arrangement; or

		
	(iv)
	a period of six months starting with the time when the Court sanctions the compromise or arrangement; 

		
	(c)
	if clause 6.1(c) applies:

		
	(i)
	and the Shares no longer meet the requirements of Part 4 of Schedule 3, during a period of 20 days starting on the date when the person who is bound or entitled to acquire Shares obtains Control of Liberty Global; or

		
	(ii)
	the period during which the person making the offer remains so bound or entitled; 

		
	(d)
	if clause 6.1(d) applies:

		
	(i)
	and the Shares no longer meet the requirements of Part 4 of Schedule 3, a period of 20 days starting on the date when the person obtains Control of Liberty Global as a result of the Non-UK Company Reorganisation which has become binding on shareholders covered by it; or

		
	(ii)
	a period of six months starting on the date the Non-UK Company Reorganisation becomes binding on shareholders covered by it. 

		
	6.4
	Voluntary winding-up of Liberty Global

If Liberty Global gives notice of a general meeting to consider a resolution for the voluntary liquidation of Liberty Global (otherwise than in connection with a compromise or arrangement as referred to in clauses 6.1(b), 6.1(d), 7.1(b) or 7.1(d)) a Participant may exercise his or her Option at any time before the first to end of the Option Period and the date on which the resolution is duly passed or defeated or withdrawn.  Any exercise under this clause 6.4 is conditional upon and will only take effect upon the resolution being passed.  The maximum number of Shares over which the Option may be exercised is limited to the number of Shares which may be bought at the Exercise Price with an amount equal to the proceeds of the related Savings Contract.  If the Option is not 

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exercised it lapses.  If a Participant exercises an Option under this clause 6.4 he or she is entitled to share in the assets of Liberty Global with existing holders of the Shares in the same way as if the Shares had been registered in his or her name before the resolution was passed.
		
	6.5
	Liquidation of Liberty Global

Except as provided in clause 6.4, and otherwise than in connection with a compromise or arrangement as referred to in clauses 6.1(b), 6.1(d), 7.1(b) or 7.1(d), all Options lapse on the start of any liquidation of Liberty Global.
		
	7.
	REPLACEMENT OF OPTIONS ON CHANGE OF CONTROL OF LIBERTY GLOBAL 

		
	7.1
	Change of Control of Liberty Global

Clause 7.2 applies where an Acquiring Company:
		
	(a)
	obtains Control of Liberty Global as a result of making:

		
	(i)
	a general offer to acquire the whole of the issued ordinary share capital of Liberty Global (other than that which it already owns and/or which is owned by any of its subsidiaries) made on a condition which, if satisfied, will result in the Acquiring Company having Control of Liberty Global; or

		
	(ii)
	a general offer to acquire all the Shares (or those Shares not already owned by the Acquiring Company and/or by any of its subsidiaries); or

		
	(b)
	obtains Control of Liberty Global under a compromise or arrangement sanctioned by the Court under section 899 of the Companies Act 2006; or

		
	(c)
	becomes bound or entitled to acquire Shares under sections 979 to 982 inclusive or sections 983 to 985 inclusive of the Companies Act 2006; or

		
	(d)
	obtains Control of Liberty Global as a result of a Non-UK Company Reorganisation which has become binding on shareholders covered by it.

		
	7.2
	Exchange of Options 

A Participant may, at any time within the appropriate period as defined in clause 7.4 by agreement with the Acquiring Company, release his or her Option (the "Old Option" for the purposes of this clause) in consideration of the grant to him or her of a new option (the "New Option" for the purposes of this clause) as long as any New Option satisfies the conditions specified in clause 7.3.
		
	7.3
	Conditions for New Options

The New Option must satisfy the conditions specified in paragraph 39(4) of Schedule 3 and in particular must:
		
	(a)
	be over shares in the Acquiring Company or a Controlling Company, which meet the conditions in paragraph 18 to 20 and paragraph 22 of Schedule 3 (and the term "Shares" in this Plan will mean those shares when applying the rules of the Plan to a New Option);

		
	(b)
	be a right to acquire that number of shares which on acquisition of the New Option have an aggregate market value substantially the same as the aggregate market value (determined on a like basis) of the Shares the subject of the Old Option immediately before its release.  The methodology for determining the market 

- 11 -

value of the Shares for the purpose of this clause 7.3(b) must be agreed by HMRC;
		
	(c)
	have an exercise price per share so that the aggregate price payable on complete exercise of the New Option is substantially the same as the aggregate price which would have been payable on complete exercise of the Old Option at the time of its release.

		
	7.4
	Time for exchange of Options

The appropriate period referred to in clause 7.2 is:
		
	(a)
	if clause 7.1(a) applies, six months starting on the date when the Acquiring Company making the offer obtains Control of Liberty Global and any condition subject to which the offer is made is satisfied;

		
	(b)
	if clause 7.1(b) applies, six months starting with the time when the Court sanctions the compromise or arrangement; and

		
	(c)
	if clause 7.1(c) applies, the period during which the Acquiring Company remains so bound or entitled; and

		
	(d)
	if clause 7.1(d) applies, six months starting on the date the Non-UK Company Reorganisation becomes binding on shareholders covered by it.

		
	7.5
	Exercise of New Options

The New Option will be exercisable in the same manner as the Old Option and subject to the provisions of the Plan as it had effect in relation to the Old Option immediately before its release (and the term "Option" in the Plan rules will refer to the New Option).  The New Option will be treated for the purposes of the Plan other than clause 7.6 as having been granted on the date when the corresponding Old Option was granted.
		
	7.6
	Interpretation

With effect from the grant of a New Option under this clause 7, clauses 6, 7, 8, 9, 11.2, 12.3, and 13, will in relation to the New Option be interpreted as if references to the Liberty Global were references to the Acquiring Company or, if relevant, the Controlling Company.
		
	8.
	EXERCISE OF OPTIONS

		
	8.1
	Manner of exercise

An Option may be exercised during the Option Period or otherwise as permitted in clauses 4 to 7 in whole or in part but once only by a Participant giving to the Company at its registered office a notice in the form specified by the VM Board.  The notice must be signed by the Participant and must specify the number of Shares over which Option is being exercised.  The Participant must supply with the notice:
		
	(a)
	a cheque or postal order payable to the Company in full payment of the aggregate Exercise Price of the Shares (or by wire transfer or any other method of payment as the VM Board may specify);

		
	(b)
	the document evidencing the grant of the Option for cancellation if requested by the VM Board; and

		
	(c)
	any other documentation the VM Board may specify.

- 12 -

The amount paid must not exceed the repayment made (excluding the repayment of any monthly contribution the due date for which falls more than one month after the date on which the repayment is made) and the relevant Bonus or interest paid to the Participant. An Option will be treated as exercised on the date when a valid notice, payment of the aggregate Exercise Price, the document evidencing the grant of an Option (if requested) and any other documents specified by the VM Board are received by the Company. 
		
	8.2
	Issue or transfer of Shares

The Company must within 30 days after the exercise of the Option either procure the:
		
	(a)
	allotment and issue; or 

		
	(b)
	transfer from treasury of:

the appropriate number of Shares to the Participant (or to the Participant's nominee at his or her written direction) and deliver to the Participant (or his or her nominee as appropriate) a definitive share certificate (or any other evidence of allotment and issue prescribed by the VM Board if the allotment and issue is by means of a relevant system, as defined in Regulation 2(1) of the Uncertificated Securities Regulations 2001) or, if applicable, the equivalent system in relation to Shares traded on any stock exchange other than the NASDAQ.
		
	8.3
	Shares

Any Shares allotted and issued on the exercise of an Option will rank equally with the Shares in issue on the date of allotment except that they will not entitle a Participant to any dividend or other distribution or any issue of Shares by way of capitalisation of profits or reserves or any issue of securities by way of rights which under the terms of a resolution passed by Liberty Global is to be or is proposed to be paid or made to the holders of Shares on the register on a date before to the date of the allotment. 
		
	9.
	VARIATIONS IN THE CAPITAL OF LIBERTY GLOBAL

		
	9.1
	Adjustment of Options

If, after the Grant Date and before an Option ceases to be exercisable, there is a variation of the capital of Liberty Global which involves the Shares by way of rights or capitalisation of reserves or a reduction, sub-division or consolidation of capital or otherwise the VM Board, with the consent of the LG Board must determine whether any adjustment should be made and if so, how.
		
	9.2
	Terms of any adjustment of Options

If the VM Board determines that an adjustment should be made under clause 9.1, the following provisions apply:
		
	(a)
	the aggregate Market Price of the Shares under each Option immediately after any adjustment must be substantially the same as the Market Price of the Shares under each Option immediately before the adjustment;

		
	(b)
	the aggregate Exercise Price payable on the exercise of any Option immediately after any adjustment must be substantially the same as the aggregate Exercise Price payable immediately before the adjustment;

		
	(c)
	no adjustment may be made which would result in the requirements of Schedule 3 not being met in relation to Options; and

- 13 -

		
	(d)
	for Options to be satisfied by the transfer of existing Shares, no adjustment may be made without the prior written consent of any person who is bound to transfer Shares on exercise of the Option.

		
	9.3
	Capitalisation of reserves

Except as provided in this clause 9.3, no adjustment under clause 9.1 may have the effect of reducing the Exercise Price for Shares to be subscribed to less than the nominal value of a Share.  Any adjustment must only be made to the Exercise Price to the extent that the LG Board is authorised to capitalise from the reserves of Liberty Global and to apply in paying up amounts on the Shares a sum equal to the amount by which the nominal value of the Shares over which the Option is exercised exceeds the adjusted Exercise Price.  On the exercise of any Option in respect of which the reduction to the Exercise Price has been made the LG Board must capitalise and apply the sum needed to pay up the relevant amount.   If an Option is granted over both existing Shares and Shares which are to be subscribed any adjustment may only be made if the reduction of the Exercise Price in relation to the Option can be made to the same extent in respect of existing Shares and Shares which are to be subscribed.
		
	9.4
	Notification

All Participants must be notified of an adjustment as soon as practicable and the Company is entitled to call in the documents evidencing the grant of any Option affected by the adjustment for endorsement or replacement, as appropriate.
		
	10.
	EARLY REPAYMENT OR DEFAULT UNDER SAVINGS CONTRACT

Except as provided in clauses 5 and 6, if a Participant voluntarily obtains repayment under his or her Savings Contract or if repayment is made under the terms of the Savings Contract by reason of his or her default in paying the contributions under his or her Savings Contract, in either case prior to the relevant Bonus Date, any subsisting Option which is linked to the Savings Contract lapses.
		
	11.
	ADMINISTRATION OF THE PLAN

		
	11.1
	Administration by the VM Board

The Plan will be administered by the VM Board. The VM Board may make further rules for the conduct of the Plan, which must be consistent with the provisions of the Plan.  Any dispute about the interpretation of the Plan or the terms of any Option must be determined by the VM Board (after seeking any advice as it considers necessary) and its decision will be final and binding.   
		
	11.2
	Maintenance of Shares for exercise of Options

The Company must at all times ensure that Liberty Global has sufficient Shares available to be issued or if relevant transferred to satisfy the exercise of all Options.
		
	12.
	AMENDMENT OF THE PLAN

		
	12.1
	Amendment

Except as provided in clause 12.2, the VM Board may amend all or any of the provisions of the Plan, except that no amendment may be made to the Plan which would prejudice its status as a Schedule 3 SAYE option scheme.

- 14 -

		
	12.2
	Consent of Participant

If an amendment proposed under clause 12.1 would materially prejudice the subsisting rights of an existing Participant, the VM Board may only make the amendment with the prior written consent of the Participant unless clause 12.3 applies. 
		
	12.3
	Consent of Participant not necessary

Clause 12.2 does not apply to any amendment which:
		
	(a)
	is necessary to secure and maintain the status of the Plan as a Schedule 3 SAYE option scheme, to ensure that the status of the Plan as a Schedule 3 SAYE option scheme is not withdrawn under any statutory modification of the provisions of the Tax Act or ITEPA, or any other enactment or to take account of a change in legislation, or to obtain or maintain favourable taxation, exchange control or regulatory treatment of Liberty Global, the Company, any Subsidiary or any Participant; or

		
	(b)
	is a minor amendment which is necessary or desirable to benefit or facilitate the administration of the Plan.

		
	12.4
	Overseas taxation

Except as provided in clause 12.1, the VM Board may, for Options granted to Eligible Employees who are or who may become subject to taxation, securities of exchange control laws outside the United Kingdom on their remuneration, amend the provisions of the Plan as it considers necessary or desirable to take account of, mitigate or comply with relevant overseas taxation, securities or exchange control laws but so that the terms of Options granted to these Eligible Employees are not overall more favourable than the terms of Options granted to other Eligible Employees.
		
	12.5
	Notification

The VM Board must notify all Participants in writing as soon as practicable after any amendment is made under this clause 12.
		
	12.6
	Termination of the Plan

The LG Board may terminate the Plan at any time but Options previously granted will continue to be valid and exercisable in accordance with the provisions of the Plan.
		
	13.
	GENERAL PROVISIONS

		
	13.1
	Terms of office or employment

The rights and obligations of a Participant under his or her terms of employment with the Company or any of its Subsidiaries will not be affected by his or her participation in the Plan.  The Plan does not entitle a Participant to rights of continued employment with the Company or any Associated Company.  A Participant waives any rights to compensation or damages as a result of the termination of his or her employment for any reason insofar as those rights arise or may arise from his or her ceasing to have rights under the Plan as a result of the termination of his or her employment.
		
	13.2
	Tax and other similar liabilities

Any liability of a Participant to taxation or social security obligations or similar liabilities in respect of an Option will be for the account of the Participant.  The VM Board may make the exercise of the Option conditional on the Participant complying with arrangements specified by the VM Board for the payment of any taxation or employee's social security 

- 15 -

obligations in respect of the exercise of the Option and the VM Board may authorise the Participant's employing company to withhold any taxes or employee's social security obligations due in respect of the Option out of salary, bonus or other payment due to the Participant.
		
	13.3
	Notices

Any notice or other communication under or in connection with the Plan may be given by personal delivery, electronically or by sending the notice or communication by post, in the case of a company, to its registered office and in the case of an individual to his or her last known address.  If the individual is a director or employee of the Company or an Associated Company the notice or communication may be sent to his or her last known address or to the address of the place of business where he or she performs all or most of the duties of his or her office or employment.  If a notice or communication is given by first class post it is deemed to have been received 48 hours after it was put into the post properly addressed and stamped.
		
	13.4
	Regulation

No Shares may be issued or transferred to a Participant following the exercise of an Option if the issue or transfer would be contrary to any enactment or regulation of the United Kingdom or of any other country having jurisdiction in relation to the Plan, Liberty Global, the Company, any Associated Company or the Participant.  The Company will not be bound to take any action to obtain the consent of any governmental authority to the issue or transfer of Shares or to take any action to ensure that any issue or transfer is in accordance with any enactment or regulation if that action would in the opinion of the VM Board be unduly onerous.
		
	13.5
	Data protection provisions

		
	(a)
	Liberty Global and the Company will store and process information about each Participant on their computers and in other ways.  By "information about each Participant" Liberty Global and the Company mean personal information they have obtained from each Participant, his or her group employing company and any other members of the group or other organisations in anticipation of the grant of the Option. 

		
	(b)
	Liberty Global and the Company will use information about each Participant to manage and administer the Option, communicate information about the Option, develop and improve services to each Participant and protect the Participant's interests. 

		
	(c)
	Liberty Global and the Company may give information about the Participant to the following:

		
	(i)
	the Participant's group employing company and its agents or service providers where disclosure is necessary to enable Liberty Global and the Company to discharge their duties and obligations in the management and administration of the Plan including any disclosure of information that may be necessary to enable the group employing company to comply with the requirements of any relevant tax, social security or other governmental authority.  (In this clause 13.5 "group employing company" includes any company or other entity of the group which may become the Participant's employer during the term of the Option and any other company or entity which has a duty to comply with any requirements imposed by any relevant tax, social security or other governmental authority in connection with the Option.);

- 16 -

		
	(ii)
	people who provide a service to Liberty Global and the Company or are acting as their agents on the understanding that they will keep the information confidential;

		
	(iii)
	anyone to whom Liberty Global and the Company transfers or may transfer their rights and duties under the Plan; and

		
	(iv)
	any body or authority, where Liberty Global and the Company have a duty to do so or if the law allows Liberty Global and the Company to do so (including any relevant tax, social security or other governmental authority);

otherwise Liberty Global and the Company will keep information about the Participant confidential.
		
	(d)
	If Liberty Global and/or the Company transfers information about the Participant to a service provider or agent in another country, it will procure that the service provider or agent agrees to apply the same levels of protection as Liberty Global and/or the Company is required to apply in the UK and other European Union jurisdictions and to use information about the Participant only for the purpose of providing the service to Liberty Global and/or the Company.

		
	13.6
	Costs

The costs of the introduction, operation and administration of the Plan must be borne by the Company and members of the Participating Group in the proportion determined by the VM Board.
		
	13.7
	Governing law

This Plan and all contractual obligations arising in any way whatsoever out of or in connection with it are governed by and construed in accordance with English law.  The courts of England have exclusive jurisdiction to settle any claim, dispute, matter or difference which may arise in any way whatsoever out of or in connection with this Deed or the legal relationships established by it.

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