Document:

exv10w1

 

Exhibit 10.1

[Series A]

FORM OF

LIBERTY GLOBAL, INC.

2005 INCENTIVE PLAN

RESTRICTED SHARE UNITS AGREEMENT

     THIS RESTRICTED SHARE UNITS
AGREEMENT (“Agreement”) is made as of
                    ,
200      (the
“Grant Date”), by and between LIBERTY GLOBAL, INC., a Delaware corporation (the “Company”), and the
individual whose name, address, and social security/payroll number appear on the signature page
hereto (the “Grantee”).

     The Company has adopted the Liberty Global, Inc. 2005 Incentive Plan, as amended and restated
(the “Plan”), a copy of which is attached to this Agreement as Exhibit A and by this
reference made a part hereof, for the benefit of eligible employees of, and independent contractors
providing services to, the Company and its Subsidiaries. Capitalized terms used and not otherwise
defined herein will have the meaning given thereto in the Plan.

     Pursuant to the Plan, the Compensation Committee (the “Committee”) appointed by the Board
pursuant to Section 3.1 of the Plan to administer the Plan has determined that it would be in the
best interest of the Company and its stockholders to award restricted share units to Grantee,
subject to the conditions and restrictions set forth herein and in the Plan, in order to provide
the Grantee additional remuneration for services rendered, to encourage the Grantee to continue to
provide services to the Company or its Subsidiaries and to increase the Grantee’s personal interest
in the continued success and progress of the Company.

     The Company and the Grantee therefore agree as follows:

     1. Definitions. The following terms, when used in this Agreement, have the following
meanings:

          “Business Day” means any day other than Saturday, Sunday or a day on which banking
institutions in Denver, Colorado, are required or authorized to be closed.

          “Cause” has the meaning specified for “cause” in Section 11.2(b) of the Plan.

          “Code” means the Internal Revenue Code of 1986, as it may be amended from time to time.

          “Committee” has the meaning specified in the recitals to this Agreement.

          “Company” has the meaning specified in the preamble to this Agreement.

          “Direct Registration System” means the book-entry registration system maintained by the
Company’s stock transfer agent, pursuant to which shares of LBTYA are held in non-certificated form
for the benefit of the registered holder thereof.

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          “Grant Date” has the meaning specified in the preamble to this Agreement.

          “Grantee” has the meaning specified in the preamble to this Agreement.

          “LBTYA” means the Series A common stock, par value $.01 per share, of the Company.

          “Plan” has the meaning specified in the recitals to this Agreement.

          “Required Withholding Amount” has the meaning specified in Section 13 of this Agreement.

          “Restricted Share Units” has the meaning specified in Section 2 of this Agreement. Restricted
Share Units represent an Award of Restricted Shares that provides for the shares of Common Stock
subject to the Award to be issued at or following the end of the Restriction Period within the
meaning of Article VIII of the Plan.

          “RSU Dividend Equivalents” means, to the extent specified by the Committee only, an amount
equal to all dividends and other distributions (or the economic equivalent thereof) which are
payable to stockholders of record during the Restriction Period on a like number and kind of shares
of Common Stock as the shares represented by the Restricted Share Units.

          “Section 409A Cap Payment Date” means, with respect to any Vesting Date, the March 15 of the
calendar year following the calendar year in which such Vesting Date occurred.

          “Termination of Service” means the termination for any reason of Grantee’s provision of
services to the Company and its Subsidiaries, as an officer, employee or independent contractor.

          “Vesting Date” means each date on which any Restricted Share Units cease to be subject to a
risk of forfeiture, as determined in accordance with this Agreement and the Plan.

     2. Grant of Restricted Share Units. Subject to the terms and conditions herein, pursuant to
the Plan, the Company grants to the Grantee effective as of the Grant Date an Award of the number
of restricted share units set forth on the signature page hereto (the “Restricted Share Units”),
each representing the right to receive one share of LBTYA, subject to the conditions and
restrictions set forth below and in the Plan.

     3. Settlement of Restricted Share Units. Settlement of Restricted Share Units that vest in
accordance with Section 5 or 6 of this Agreement or Section 11.1(b) of the Plan shall be made as
soon as administratively practicable after the applicable Vesting Date, but in no event later than
the Section 409A Cap Payment Date applicable to such Vesting Date. Settlement of vested Restricted
Share Units shall be made in payment of shares of LBTYA, together with any related RSU Dividend
Equivalents, in accordance with Section 7.

     4. Stockholder Rights; RSU Dividend Equivalents. The Grantee shall have no rights of a
stockholder with respect to any shares of LBTYA represented by any Restricted Share

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Units unless and until such time as shares of LBTYA represented by vested Restricted Share
Units have been delivered to the Grantee in accordance with Section 7. Grantee will have no right
to receive, or otherwise with respect to, any RSU Dividend Equivalents until such time, if ever, as
the Restricted Share Units with respect to which such RSU Dividend Equivalents relate shall have
become vested and, if vesting does not occur, the related RSU Dividend Equivalents will be
forfeited. RSU Dividend Equivalents shall not bear interest or be segregated in a separate
account. Notwithstanding the foregoing, the Committee may, in its sole discretion, accelerate the
vesting of any portion of the RSU Dividend Equivalents (the “Vested RSU Dividend Equivalents”).
The settlement of any Vested RSU Dividend Equivalents shall be made as soon as administratively
practicable after the accelerated vesting date, but in no event later than March 15 of the
following calendar year.

     5. Vesting. Unless the Committee otherwise determines in its sole discretion, subject to
earlier vesting in accordance with Section 6 of this Agreement or Section 11.1(b) of the Plan and
subject to the last sentence of this Section 5, the Restricted Share Units shall become vested in
accordance with the following schedule (each date specified below being a Vesting Date):

	 	(i)	 	On                      200     ,     % of the Restricted Share
Units shall become vested; and
	 
	 	(ii)	 	On each                     ,                     ,                     and            
         
thereafter to and including                           , 200     , an additional      % of
the Restricted Share Units shall become vested.

     On each Vesting Date, and the satisfaction of any other applicable restrictions, terms and
conditions, any RSU Dividend Equivalents with respect to the Restricted Share Units that have not
theretofore become Vested RSU Dividend Equivalents (“Unpaid RSU Dividend Equivalents”) will become
vested to the extent that the Restricted Share Units related thereto shall have become vested in
accordance with this Agreement. Notwithstanding the foregoing, Grantee will not vest, pursuant to
this Section 5, in Restricted Share Units as to which Grantee would otherwise vest as of a given
date if Termination of Service or a breach of any applicable restrictions, terms or conditions with
respect to such Restricted Share Units has occurred at any time after the Grant Date and prior to
such Vesting Date (the vesting or forfeiture of such Restricted Share Units to be governed instead
by Section 6).

     6. Early Vesting or Forfeiture.

          (a) Unless otherwise determined by the Committee in its sole discretion:

	 	(i)	 	If Termination of Service occurs by reason of
Grantee’s death or Disability, the Restricted Share Units, to the
extent not theretofore vested, and any related Unpaid RSU Dividend
Equivalents, will immediately become fully vested;
	 
	 	(ii)	 	If Termination of Service is by the Company or
a Subsidiary without Cause (as determined in the sole discretion of the
Committee) more than six months after the Grant Date and prior to

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	 	 	 	vesting in full of the Restricted Share Units, then an additional
percentage of the Restricted Share Units, together with any related
Unpaid RSU Dividend Equivalents, will become vested on the date of
Termination of Service equal to the product of (x) one-third (1/3) of
the additional percentage of Restricted Share Units that would have
become vested on the next following Vesting Date in accordance with
the schedule in Section 5, times (y) the number of full months of
employment completed since the most recent Vesting Date preceding the
Termination of Service, and the balance of the Restricted Share Units
to the extent not theretofore vested, together with any related
Unpaid RSU Dividend Equivalents, will be forfeited immediately.
	 
	 	(iii)	 	If Termination of Service occurs for any
reason other than as specified in Section 6(a)(i) or 6(a)(ii) above,
then the Restricted Share Units, to the extent not theretofore vested,
together with any related Unpaid RSU Dividend Equivalents, will be
forfeited immediately.
	 
	 	(iv)	 	If Grantee breaches any restrictions, terms or
conditions provided in or established by the Committee pursuant to the
Plan or this Agreement with respect to the Restricted Share Units prior
to the vesting thereof (including any attempted or completed transfer
of any such unvested Restricted Share Units contrary to the terms of
the Plan or this Agreement), the unvested Restricted Share Units,
together with any related Unpaid RSU Dividend Equivalents, will be
forfeited immediately.

          (b) Upon forfeiture of any unvested Restricted Share Units, and any related Unpaid RSU
Dividend Equivalents, such Restricted Share Units and any related Unpaid RSU Dividend Equivalents
will be immediately cancelled, and Grantee will cease to have any rights with respect thereto.

          (c) Unless the Committee otherwise determines, neither a change of the Grantee’s employment
from the Company to a Subsidiary or from a Subsidiary to the Company or another Subsidiary, nor a
change in Grantee’s status from an independent contractor to an employee, will be a Termination of
Service for purposes of this Agreement if such change of employment or status is made at the
request or with the express consent of the Company. Unless the Committee otherwise determines,
however, any such change of employment or status that is not made at the request or with the
express consent of the Company and any change in Grantee’s status from an employee to an
independent contractor will be a Termination of Service within the meaning of this Agreement.

     7. Delivery by Company. As soon as practicable after the vesting of Restricted Share Units,
and any related Unpaid RSU Dividend Equivalents, pursuant to Section 5 or 6 hereof or Section
11.1(b) of the Plan, and subject to the withholding referred to in Section 13 of this Agreement,
the Company will deliver or cause to be delivered to or at the direction of

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Grantee (i)(a) a certificate or certificates issued in Grantee’s names for the shares of LBTYA
represented by such vested Restricted Share Units, (b) a statement of holdings reflecting that the
shares of LBTYA represented by such vested Restricted Share Units are held through the Direct
Registration Statement, or (c) a confirmation of deposit of the shares of LBTYA represented by such
vested Restricted Share Units, in book-entry form, into the broker’s account designated by Grantee,
(ii) any securities constituting related vested Unpaid RSU Dividend Equivalents by any applicable
method specified in clause (i) above, and (iii) any cash payment constituting related vested Unpaid
RSU Dividend Equivalents. Any delivery of securities will be deemed effected for all purposes when
(1) a certificate representing or statement of holdings reflecting such securities and, in the case
of any Unpaid RSU Dividend Equivalents, any other documents necessary to reflect ownership thereof
by Grantee has been delivered personally to the Grantee or, if delivery is by mail, when the
Company or its stock transfer agent has deposited the certificate or statement of holdings and/or
such other documents in the United States mail, addressed to the Grantee, or (2) confirmation of
deposit into the designated broker’s account of such securities, in written or electronic format,
is first made available to Grantee. Any cash payment will be deemed effected when a check from the
Company, payable to or at the direction of the Grantee and in the amount equal to the amount of the
cash payment, has been delivered personally to or at the direction of the Grantee or deposited in
the United States mail, addressed to the Grantee or his or her nominee.

     8. Nontransferability of Restricted Share Units Before Vesting.

          (a) Before vesting and during Grantee’s lifetime, the Restricted Share Units and any related
Unpaid RSU Dividend Equivalents may not be sold, assigned, transferred by gift or otherwise,
pledged, exchanged, encumbered or disposed of (voluntarily or involuntarily), other than an
assignment pursuant to a Domestic Relations Order. In the event of an assignment pursuant to a
Domestic Relations Order, the unvested Restricted Share Units and any related Unpaid RSU Dividend
Equivalents so assigned shall be subject to all the restrictions, terms and provisions of this
Agreement and the Plan, and the assignee shall be bound by all applicable provisions of this
Agreement and the Plan in the same manner as Grantee.

          (b) The Grantee may designate a beneficiary or beneficiaries to whom the Restricted Share
Units, to the extent then vesting, and any related Unpaid RSU Dividend Equivalents will pass upon
the Grantee’s death and may change such designation from time to time by filing a written
designation of beneficiary or beneficiaries with the Committee on the form annexed hereto as
Exhibit B or such other form as may be prescribed by the Committee, provided that no such
designation will be effective unless so filed prior to the death of Grantee. If no such
designation is made or if the designated beneficiary does not survive Grantee’s death, the
Restricted Share Units, to the extent then vesting, and any related Unpaid RSU Dividend Equivalents
will pass by will or the laws of descent and distribution. Following Grantee’s death, the person
to whom such vested Restricted Share Units and any related Unpaid RSU Dividend Equivalents pass
according to the foregoing will be deemed the Grantee for purposes of any applicable provisions of
this Agreement.

     9. Adjustments. The Restricted Share Units and any related Unpaid RSU Dividend Equivalents
will be subject to adjustment pursuant to Section 4.2 of the Plan in such manner as

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the Committee may deem equitable and appropriate in connection with the occurrence following
the Grant Date of any of the events described in Section 4.2 of the Plan.

     10. Company’s Rights. The existence of this Agreement will not affect in any way the right or
power of the Company or its stockholders to accomplish any corporate act, including, without
limitation, the acts referred to in Section 11.16 of the Plan.

     11. Limitation of Rights. Nothing in this Agreement or the Plan will be construed to give
Grantee any right to be granted any future Award other than in the sole discretion of the Committee
or give Grantee or any other person any interest in any fund or in any specified asset or assets of
the Company or any of its Subsidiaries. Neither Grantee nor any person claiming through Grantee
will have any right or interest in shares of LBTYA represented by any Restricted Share Units or any
related Unpaid RSU Dividend Equivalents unless and until there shall have been full compliance with
all the terms, conditions and provisions of this Agreement and the Plan which affect Grantee or
such other person.

     12. Restrictions Imposed by Law. Without limiting the generality of Section 11.8 of the Plan,
the Company shall not be obligated to deliver any shares of LBTYA represented by vested Restricted
Share Units or securities constituting any Unpaid RSU Dividend Equivalents if counsel to the
Company determines that the issuance or delivery thereof would violate any applicable law or any
rule or regulation of any governmental authority or any rule or regulation of, or agreement of the
Company with, any securities exchange upon which shares of LBTYA or such other securities are
listed. The Company will in no event be obligated to take any affirmative action in order to cause
the delivery of shares of LBTYA represented by vested Restricted Share Units or securities
constituting any Unpaid RSU Dividend Equivalents to comply with any such law, rule, regulation, or
agreement. Any certificates representing any such securities issued or delivered under this
Agreement may bear such legend or legends as the Company deems appropriate in order to assure
compliance with applicable securities laws.

     13. Withholding. To the extent that the Company is subject to withholding tax requirements
under any national, state, local or other governmental law with respect to the award of the
Restricted Share Units to Grantee or the vesting thereof, or the designation of any RSU Dividend
Equivalents as payable or distributable or the payment or distribution thereof, the Grantee must
make arrangement satisfactory to the Company to make payment to the Company of the amount required
to be withheld under such tax laws, as determined by the Company (collectively, the “Required
Withholding Amount”). To the extent such withholding is required because the Grantee vests in some
or all of the Restricted Share Units and any related RSU Dividend Equivalents, the Company shall
withhold (i) from the shares of LBTYA represented by vested Restricted Share Units and otherwise
deliverable to the Grantee a number of shares of LBTYA and/or (ii) from any related RSU Dividend
Equivalents otherwise deliverable to the Grantee an amount of such RSU Dividend Equivalents, which
collectively have a value (or, in the case of securities withheld, a Fair Market Value) equal to
the Required Withholding Amount, unless Grantee remits the Required Withholding Amount to the
Company in cash in such form and by such time as the Company may require or other provisions for
withholding such amount satisfactory to the Company have been made. Notwithstanding any other
provisions of this Agreement, the delivery of any shares of LBTYA represented by vested Restricted
Share Units

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and any related RSU Dividend Equivalents may be postponed until any required withholding taxes
have been paid to the Company.

     14. Notice. Unless the Company notifies the Grantee in writing of a different procedure, any
notice or other communication to the Company with respect to this Agreement will be in writing and
will be delivered personally or sent by United States first class mail, postage prepaid, sent by
overnight courier, freight prepaid or sent by facsimile and addressed as follows:

Liberty Global, Inc.

12300 Liberty Boulevard

Englewood, CO 80112

Attn: General Counsel

Fax: 303-220-6691

     Any notice or other communication to the Grantee with respect to this Agreement will be in
writing and will be delivered personally, or will be sent by United States first class mail,
postage prepaid, to the Grantee’s address as listed in the records of the Company on the Grant
Date, unless the Company has received written notification from the Grantee of a change of address.

     15. Amendment. Notwithstanding any other provision hereof, this Agreement may be supplemented
or amended from time to time as approved by the Committee. Without limiting the generality of the
foregoing, without the consent of the Grantee,

          (a) this Agreement may be amended or supplemented from time to time as approved by the
Committee (i) to cure any ambiguity or to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or (ii) to add to the covenants and
agreements of the Company for the benefit of the Grantee or surrender any right or power reserved
to or conferred upon the Company in this Agreement, subject to any required approval of the
Company’s stockholders and, provided, in each case, that such changes or corrections will not
adversely affect the rights of the Grantee with respect to the Award evidenced hereby, or (iii) to
reform the Award made hereunder as contemplated by Section 11.18 of the Plan or to exempt the Award
made hereunder from coverage under Section 409A, or (iv) to make such other changes as the Company,
upon advice of counsel, determines are necessary or advisable because of the adoption or
promulgation of, or change in or of the interpretation of, any law or governmental rule or
regulation, including any applicable federal or state securities laws; and

          (b) subject to any required action by the Board or the stockholders of the Company, the
Restricted Share Units granted under this Agreement may be canceled by the Company and a new Award
made in substitution therefor, provided that the Award so substituted will satisfy all of the
requirements of the Plan as of the date such new Award is made and no such action will adversely
affect any Restricted Share Units that are then vested.

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     16. Grantee Employment.

          (a) Nothing contained in this Agreement, and no action of the Company or the Committee with
respect hereto, will confer or be construed to confer on the Grantee any right to continue in the
employ or service of the Company or any of its Subsidiaries or interfere in any way with any right
of the Company or any Subsidiary, subject to the terms of any separate employment agreement to the
contrary, to terminate the Grantee’s employment or service at any time, with or without cause.

          (b) The Award hereunder is special incentive compensation that will not be taken into account,
in any manner, as salary, earnings, compensation, bonus or benefits, in determining the amount of
any payment under any pension, retirement, profit sharing, 401(k), life insurance, salary
continuation, severance or other employee benefit plan, program or policy of the Company or any of
its Subsidiaries or any employment agreement or arrangement with the Grantee.

          (c) It is a condition of the Grantee’s Award that, in the event of Termination of Service for
whatever reason, whether lawful or not, including in circumstances which could give rise to a claim
for wrongful and/or unfair dismissal (whether or not it is known at the time of Termination of
Service that such a claim may ensue), the Grantee will not by virtue of such Termination of
Service, subject to Section 6 of this Agreement, become entitled to any damages or severance or any
additional amount of damages or severance in respect of any rights or expectations of whatsoever
nature the Grantee may have hereunder or under the Plan. Notwithstanding any other provision of
the Plan or this Agreement, the Award hereunder will not form part of the Grantee’s entitlement to
remuneration or benefits pursuant to the Grantee’s employment agreement or arrangement, if any.
The rights and obligations of the Grantee under the terms of his or her employment agreement, if
any, will not be enhanced hereby.

          (d) In the event of any inconsistency between the terms hereof or of the Plan and any
employment, severance or other agreement with the Grantee, the terms hereof and of the Plan shall
control.

     17. Nonalienation of Benefits. Except as provided in Section 8 of this Agreement, (i) no
right or benefit under this Agreement will 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 will be void, and (ii) no right or benefit hereunder will in any manner be liable for or
subject to the debts, contracts, liabilities or torts of the Grantee or other person entitled to
such benefits.

     18. Data Privacy.

          (a) The Grantee’s acceptance hereof shall evidence the Grantee’s explicit and unambiguous
consent to the collection, use and transfer, in electronic or other form, of the Grantee’s personal
data by and among, as applicable, the Grantee’s employer (the “Employer”) and the Company and its
subsidiaries and affiliates for the exclusive purpose of implementing, administering and managing
the Grantee’s participation in the Plan. The Grantee understands

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that the Company and the Employer may hold certain personal information about the Grantee,
including, but not limited to, the Grantee’s name, home address and telephone number, date of
birth, social insurance number or other identification number, salary, bonus and employee benefits,
nationality, job title and description, any shares of stock or directorships or other positions
held in the Company, its subsidiaries and affiliates, details of all options, stock appreciation
rights, restricted shares, restricted share units or any other entitlement to shares of stock or
other Awards granted, canceled, exercised, vested, unvested or outstanding in the Grantee’s favor,
annual performance objectives, performance reviews and performance ratings, for the purpose of
implementing, administering and managing Awards under the Plan (“Data”).

          (b) The Grantee understands that Data may be transferred to any third parties assisting in the
implementation, administration and management of the Plan, that these recipients may be located in
the Grantee’s country or elsewhere, and that the recipients’ country (e.g. the United States) may
have different data privacy laws and protections than the Grantee’s country. The Grantee
understands that the Grantee may request a list with the names and addresses of any potential
recipients of the Data by contacting the Grantee’s local human resources representative. The
Grantee authorizes the recipients to receive, possess, use, retain and transfer the Data, in
electronic or other form, for the sole purpose of implementing, administering and managing the
Grantee’s participation in the Plan, including any requisite transfer of such Data as may be
required to a broker or other third party with whom the Grantee may elect to deposit any shares of
stock acquired with respect to an Award.

          (c) The Grantee understands that Data will be held only as long as is necessary to implement,
administer and manage the Grantee’s participation in the Plan. The Grantee understands that the
Grantee may at any time view Data, request additional information about the storage and processing
of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any
case without cost, by contacting in writing the Grantee’s local human resources representative.
The Grantee understands, however, that refusing or withdrawing the Grantee’s consent may affect the
Grantee’s ability to participate in the Plan. For more information on the consequences of a
refusal to consent or withdrawal of consent, the Grantee may contact the Grantee’s local human
resources representative.

     19. Governing Law. This Agreement will be governed by, and construed in accordance with, the
internal laws of the State of Colorado. Each party irrevocably submits to the general jurisdiction
of the state and federal courts located in the State of Colorado in any action to interpret or
enforce this Agreement and irrevocably waives any objection to jurisdiction that such party may
have based on inconvenience of forum.

     20. Construction. References in this Agreement to “this Agreement” and the words “herein,”
“hereof,” “hereunder” and similar terms include all Exhibits and Schedules appended hereto,
including the Plan. This Agreement is entered into, and the Award evidenced hereby is granted,
pursuant to the Plan and shall be governed by and construed in accordance with the Plan and the
administrative interpretations adopted by the Committee thereunder. The word “include” and all
variations thereof are used in an illustrative sense and not in a limiting sense. All decisions of
the Committee upon questions regarding this Agreement will be conclusive. Unless otherwise
expressly stated herein, in the event of any inconsistency between the terms of the Plan and this
Agreement, the terms of the Plan will control. The headings of the sections of this

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Agreement have been included for convenience of reference only, are not to be considered a
part hereof and will in no way modify or restrict any of the terms or provisions hereof.

     21. Duplicate Originals. The Company and the Grantee may sign any number of copies of this
Agreement. Each signed copy will be an original, but all of them together represent the same
agreement.

     22. Rules by Committee. The rights of the Grantee and the obligations of the Company
hereunder will be subject to such reasonable rules and regulations as the Committee may adopt from
time to time.

     23. Entire Agreement. This Agreement is in satisfaction of and in lieu of all prior
discussions and agreements, oral or written, between the Company and the Grantee regarding the
subject matter hereof. The Grantee and the Company hereby declare and represent that no promise or
agreement not herein expressed has been made and that this Agreement contains the entire agreement
between the parties hereto with respect to the Award and replaces and makes null and void any prior
agreements between the Grantee and the Company regarding the Award. This Agreement will be binding
upon and inure to the benefit of the parties and their respective heirs, successors and assigns.

     24. Grantee Acceptance. The Grantee will signify acceptance of the terms and conditions of
this Agreement by signing in the space provided at the end hereof and returning a signed copy to
the Company. If the Grantee does not execute this Agreement by                     , 200     , the grant of
Restricted Share Units shall be null and void.

[Signature page follows.]

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Signature Page to Restricted Share Units Agreement

dated as of                                          , 200                    , between Liberty Global, Inc. and Grantee

	 	 	 	 	 	 	 
	 	 	LIBERTY GLOBAL, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	ACCEPTED:
	 
	 	 	 	 	 	 
	 	 	 
	 

	 	Grantee Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 	 	 
	 

	 	City/State/Country:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	Social Security Number/Payroll Number:	 	 	 
	 

	 	 	 	 	 	 

Grant No. R-

	 	 	 	 	 
	Number of Restricted Share Units (LBTYA) Awarded
	 	 	 	 
	 

	 	 

	 	 

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Exhibit A

to

Restricted Share Units Agreement (Series A)

dated as of                                         , 200                    , between Liberty Global, Inc. and Grantee

A-1

 

Exhibit B

to

Restricted Share Units Agreement (Series A)

dated as of                                        , 200                     , between Liberty Global, Inc. and
Grantee

Designation of Beneficiary

     I,                                                             
                                                                                     
                   
(the “Grantee”), hereby declare 
that upon my death                                         
(the “Beneficiary”) of
                                              Name

	 	 	 	 	 	 	 	, 	 
	 	, 
	 	 	 
	Street Address

	 	City
	 	State
	 	Zip Code
	 	 

who is my                                                             , will be entitled to the

                           Relationship to Grantee

Restricted Share Units vesting upon my death and all other rights accorded the Grantee by the
above-referenced grant agreement (the “Agreement”).

     It is understood that this Designation of Beneficiary is made pursuant to the Agreement and is
subject to the conditions stated herein, including the Beneficiary’s survival of the Grantee’s
death. If any such condition is not satisfied, such rights will devolve according to the Grantee’s
will or the laws of descent and distribution.

     It is further understood that all prior designations of beneficiary under the Agreement are
hereby revoked and that this Designation of Beneficiary may only be revoked in writing, signed by
the Grantee, and filed with the Company prior to the Grantee’s death.

	 	 	 	 	 
	 
	 

	 	 	 	 
	Date

	 	 	 	Grantee

B-1exv10w2

 

Exhibit 10.2

LIBERTY GLOBAL, INC.

SENIOR EXECUTIVE

PERFORMANCE INCENTIVE PLAN

(As Amended and Restated Effective May 2, 2007)

ARTICLE I

GENERAL

Section 1.1 Purpose.

     The purpose of the Liberty Global, Inc. Senior Executive Performance Incentive Plan (the
“Plan”) is to benefit and advance the interests of the Company and its stockholders by providing
performance-based incentives to selected executive officers of the Company, its subsidiaries and
divisions that are designed to foster the following goals: (a) focus the senior executive team
upon achieving superior operating performance; (b) supplement the equity awards currently held by
the members of the senior executive team and (c) ensure stability of the senior executive team by
providing a five-year retention incentive.

     The Plan was originally adopted on February 26, 2007 pursuant to Article X of the Liberty
Global, Inc. 2005 Incentive Plan (the “LGI Incentive Plan”). The Plan is hereby amended and
restated effective May 2, 2007 to comply with certain requirements imposed by final Treasury
Regulations issued pursuant to Section 409A of the Code (“Section 409A”) and to clarify certain
provisions of the Plan. Awards made hereunder shall constitute Performance Awards within the
meaning of the LGI Incentive Plan and are intended 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.

Section 1.2 Definitions.

     Capitalized terms not defined in this Plan have the meanings ascribed thereto in the LGI
Incentive Plan. Certain terms used herein have definitions given to them in the first place in
which they are used. In addition, the following terms have the following meanings:

     “Annual Performance Rating” means the performance rating ranging from 1 (unsatisfactory) to 5
(outstanding) received by a Participant from his or her supervisor or, in the case of the Chief
Executive Officer, the Committee during the Company’s Annual Performance Review Process. The
performance rating received by a Participant who is an executive officer of the Company, other than
the Chief Executive Officer, will be subject to review and approval by the Committee.

 

 

     “Approved Transaction” means any transaction in which the Board (or, if approval of the Board
is not required as a matter of law, the stockholders of the Company) shall approve (i) any
consolidation or merger of the Company, or binding share exchange, pursuant to which shares of
Common Stock of the Company would be changed or converted into or exchanged for cash, securities,
or other property, other than any such transaction in which the common stockholders of the Company
immediately prior to such transaction have the same proportionate ownership of the common stock of,
and voting power with respect to, the surviving corporation immediately after such transaction,
(ii) any merger, consolidation or binding share exchange to which the Company is a party as a
result of which the persons who are common stockholders of the Company immediately prior thereto
have less than a majority of the combined voting power of the outstanding capital stock of the
Company ordinarily (and apart from the rights accruing under special circumstances) having the
right to vote in the election of directors immediately following such merger, consolidation or
binding share exchange, (iii) the adoption of any plan or proposal for the liquidation or
dissolution of the Company, or (iv) any sale, lease, exchange or other transfer (in one transaction
or a series of related transactions) of all, or substantially all, of the assets of the Company.

     “Board 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.

     “Cause” for termination of a Participant’s employment with the Company or a Subsidiary of the
Company prior to an Approved Transaction, Board Change or Control Purchase, has the meaning
ascribed thereto in the applicable Participant’s employment agreement or, in the absence thereof,
shall include each of the following, without limitation, insubordination, dishonesty, incompetence,
moral turpitude, other misconduct of any kind or the refusal by the Participant to perform his or
her duties and responsibilities for any reason other than illness or incapacity. After an Approved
Transaction, Board Change or Control Purchase, “Cause” for termination of employment shall mean
only a felony conviction for fraud, misappropriation or embezzlement.

     “Committee” means the Compensation Committee of the Board and any successor thereto.

     “Company” means Liberty Global, Inc., a Delaware corporation, and any successor thereto.

     “Control Purchase” means any transaction (or series of related transactions) in which any
person (as such term is defined in Sections 13(d)(3) and 14(d)(2) of the Exchange Act), corporation
or other entity (other than the Company, any Subsidiary of the Company or any employee benefit plan
sponsored by the Company or any Subsidiary of the Company) shall 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

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representing 20% or more of the combined voting power of the then outstanding securities of the
Company ordinarily (and apart from the rights accruing under special circumstances) having the
right to vote in the election of directors (calculated as provided in Rule 13d-3(d) under the
Exchange Act in the case of rights to acquire the Company’s securities), other than in a
transaction (or series of related transactions) approved by the Board. For purposes of this
definition, "Exempt Person” means each of (a) the Chairman of the Board, the President and each of
the directors of the Company as of June 15, 2005, 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.

     “Discount Rate” means a rate equal to the U.S. Federal statutory short-term rate or mid-term
rate, as applicable for a debt instrument of equivalent duration, each as defined in Section
1274(d) of the Code and found in the applicable month’s Revenue Ruling published in the Internal
Revenue Bulletin.

     “Earned Award” means the amount of the Award, not in excess of his or her Maximum Award, that
following the completion of the Performance Period a Participant is determined in accordance with
Section 2.2 to be eligible to receive, subject to reduction, forfeiture or acceleration during the
Service Period in accordance with Section 3.3 and Article IV, as applicable.

     “Good Reason” for a Participant to resign from his or her employment with the Company and its
Subsidiaries means that any of the following occurs, is not consented to by such Participant and,
except for purposes of Section 4.3(b), is not the result of such Participant’s poor performance:

     (i) any material diminution in the Participant’s base compensation;

     (ii) the material diminution of the Participant’s official position or authority, but
excluding isolated or inadvertent action not taken in bad faith that is remedied promptly
after notice; or

     (iii) the Company requires the Participant to relocate his/her principal business
office to a different country.

     For a Participant’s Termination of Employment to constitute resignation for Good Reason, the
Participant must notify the Committee in writing within 30 days of the occurrence of such event
that Good Reason exists for resignation, the Company must not have taken corrective action within
60 days after such notice is given so that Good Reason for resignation ceases to exist, and the
Participant must terminate his or her employment with the Company and its Subsidiaries within six
months after such notice is given or such longer period (but in any event not to exceed two years
following the initial occurrence of such event) as may be required by the provisions of any
employment

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agreement or other contract or arrangement with the Company or its Subsidiaries to which such
Participant is a party.

     “Maximum Award” means the maximum amount of the Award that a Participant will be eligible to
receive subject to the terms and conditions of the Plan as established by the Committee for each
Participant.

     “NEO” means the Company’s Chief Executive Officer and each other Participant who is one of the
five most highly compensated executive officers of the Company other than the Chief Executive
Officer, at the end of the Performance Period or at such other date as is specified herein.

     “OCF” for any year of any entity or business means revenue less operating, selling, general
and administrative expenses (excluding stock-based compensation, depreciation and amortization,
impairment charges and restructuring charges or credits, and gains and losses on the disposition of
long-lived assets) of such entity or business for such year on a consolidated or combined basis as
applicable. If as a result of changes in U.S. GAAP affecting financial statements of the Company
for any year included in the Performance Period, the Company revises its definition of operating
cash flow for external reporting purposes, then the definition of OCF herein will be automatically
amended for all purposes of this Plan to incorporate such changes. By way of example, if U.S. GAAP
were to be changed such that direct acquisition costs were required to be expensed as incurred, as
currently contemplated by the Financial Accounting Standards Board’s Business Combination project,
such costs would be excluded in calculating OCF.

     “Participant” shall mean those executive officers of the Company, its subsidiaries and
divisions as the Committee shall designate to participate in the Plan.

     “Performance Period” means the period from January 1, 2007 through December 31, 2008.

     “Regulations” means the rules and regulations under the Code or a specified section of the
Code, as applicable.

     “Series A Common Stock” means the Series A common stock, par value $.01 per share, of the
Company.

     “Series C Common Stock” means the Series C common stock, par value $.01 per share, of the
Company.

     “Service Period” means the period from January 1, 2009 through December 31, 2011.

     “Termination of Employment” means the applicable Participant has ceased employment with the
Company and its Subsidiaries for any reason. Whether any leave of absence constitutes a
Termination of Employment will be determined by the Committee

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subject to Section 11.12(c) of the LGI Incentive Plan. Transfers of employment among the Company
and its Subsidiaries shall not be considered a Termination of Employment.

     “U.S. GAAP” means generally accepted accounting principles applicable to the Company as in
effect from time.

Section 1.3 Administration.

     The Committee shall administer this Plan. All Committee decisions shall be binding and
conclusive on Participants. Subject to the express terms of this Plan and the requirements of
Section 162(m) of the Code and the Regulations applicable to qualified performance-based
compensation for the NEOs, the Committee shall have the authority to:

     (a) Select the Participants;

     (b) Determine the Maximum Award for each Participant;

     (c) Determine whether the performance objectives have been achieved and the level of
achievement;

     (d) Determine the amount of the Earned Award for each Participant and the method or methods of
payment; and

     (e) Establish, amend and rescind policies and procedures to administer the Plan from time to
time; interpret the Plan and make all necessary or advisable decisions with respect to the Plan.

     Decisions made by the Committee in the exercise of its discretion hereunder may vary by
Participant.

ARTICLE II

AWARDS

Section 2.1 Limitation on Awards.

     The aggregate amount of the Maximum Awards allocated to Participants under the Plan shall not
exceed $313.5 million. Participants in the Plan will not be eligible for grants of equity Awards
under the LGI Incentive Plan during the Performance Period, but will continue to be eligible for
grants of annual Cash Awards under the LGI Incentive Plan subject to the limits specified in
Section 4.1 of the LGI Incentive Plan on Cash Awards. Notwithstanding the foregoing, the Committee
may in its discretion grant an equity Award to a Participant whose employment by the Company and
its Subsidiaries first commences after January 1, 2007, in connection with and as an inducement to
such employment.

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Section 2.2 Performance Objectives.

     (a) Base Objectives. Subject to the other provisions of this Plan, for a Participant
to earn any portion of his or her Maximum Award, 2008 Adjusted OCF as compared to 2006 Adjusted OCF
must yield a compound annual growth rate over the two-year Performance Period (“OCF CAGR”) of no
less than 12% and, with respect to any Participant other than an NEO, the Participant must not have
received an Annual Performance Rating of less than 3.0 for any year during the Performance Period
(the “Base Objectives” or “Base Objective”, as applicable).

     (b) Calculation of Earned Award.

          (i) Subject to the other provisions of this Plan, including, without limitation, Section
2.2(d), if the Base Objectives are met for a Participant other than an NEO, then the amount of the
Earned Award of such Participant will initially be determined by multiplying his or her Maximum
Award by the applicable percentage (“AP”) determined in accordance with the table below (with the
AP for OCF CAGRs in between the OCF CAGRs shown in the table determined by interpolation):

	 	 	 
	OCF CAGR	 	AP
	17%
	 	100%
	16%
	 	95%
	15%
	 	80%
	14%
	 	65%
	13%
	 	55%
	12%
	 	50%

     Notwithstanding the foregoing, the Committee may in its discretion reduce the amount of the
Earned Award initially so determined for any Participant who received less than a 4.0 Annual
Performance Rating for any year in the Performance Period.

          (ii) Subject to the other provisions of this Plan, if the Base Objective is met for an NEO,
the amount of the Earned Award of such NEO will be 100% of his or her Maximum Award or such lower
percentage thereof as the Committee may determine in its sole discretion, taking into account the
OCF CAGR achieved and such other factors as the Committee deems relevant (including the provisions
of Section 2.2(d)), but not below the AP applied generally to the Maximum Awards of other
Participants who received Annual Performance Ratings of 4.0 or better for each year in the
Performance Period except in the case of an NEO who received less than a 4.0 Annual Performance
Rating for any year in the Performance Period. Notwithstanding the foregoing, the Committee may,
in its discretion, reduce the percentage of such NEO’s Maximum Award that would otherwise be earned
to zero if the Annual Performance Rating received by such NEO for any year during the Performance
Period was less than 3.0.

     (c) 2006/2008 Adjusted OCF. In determining 2006 Adjusted OCF and 2008 Adjusted OCF,
the Company’s OCF for the year ended December 31, 2006 (“2006

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OCF”) and for the year ended December 31, 2008 (“2008 OCF”) will be adjusted as provided
below:

          (i) The same foreign currency exchange rates will be applied in each year in converting
revenue and expenses denominated in foreign currencies to U.S. dollars.

          (ii) In the event of changes in U.S. GAAP accounting principles during the Performance Period
that are not otherwise taken into account in the definition of OCF in Section 1.2, appropriate
adjustments will be made to 2006 OCF for comparability with the principles applied to the
determination of 2008 OCF.

          (iii) Subject to the remaining provisions of this Section 2.2(c), 2006 OCF will be adjusted
for acquisitions (including changes in ownership that result in consolidation of an entity for
financial reporting purposes) of entities or businesses (each, an “acquired entity”) that were or
are first reflected in the Company’s OCF in 2006 or 2007 (other than Excluded Acquisitions, as
defined below) to include the 2006 pre-acquisition OCF of such acquired entity (translated into
U.S. dollars in accordance with clause (i) above) to the same extent that the 2008 post-acquisition
OCF of such acquired entity is included in 2008 OCF and otherwise on the same basis as the Company
currently rebases OCF for public disclosure purposes. Notwithstanding the foregoing, if the
acquired entity has estimated OCF of less than $1 million for the 12-month period prior to the
acquisition and the Company has been unable to obtain reliable historical financial information of
such acquired entity for purposes of the 2006 OCF adjustment after reasonable efforts, then no
adjustments to 2006 OCF will be made for such acquisition. To the extent significant, the OCF
obtained from the historical financial information of an acquired entity for purposes of adjusting
2006 OCF will be adjusted for the effects of purchase accounting or other adjustments to conform to
U.S. GAAP or correct errors in the pre-acquisition financial statements.

          (iv) 2006 OCF and 2008 OCF will be adjusted, as applicable and without duplication, to
eliminate amounts attributable to (x) the Company’s consolidated broadband operations in Belgium
and (y) entities or businesses disposed of during the Performance Period (including changes in
ownership that result in deconsolidation of an entity for financial reporting purposes). For
purposes of determining the amounts to be eliminated in the case of clause (x), the guidelines
approved by the Committee will be followed. The adjustments pursuant to clause (y) will be made on
the same basis as the Company currently rebases OCF for dispositions for public disclosure
purposes, unless the Company’s consolidated financial statements for the relevant year have been
restated to reflect such disposed entity or business as discontinued operations.

          (v) 2008 OCF will also be adjusted (without duplication) to eliminate the estimated amounts
attributable to (x) any acquired entity whose OCF is first reflected in 2008 OCF and (y) any
acquired entity that is an Excluded Acquisition. For purposes of determining the estimated amounts
to be eliminated from 2008 OCF pursuant to this clause (v), the guidelines approved by the
Committee will be followed.

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          (vi) “Excluded Acquisitions” for purposes of this Section 2.2 means (A) any acquired entity
the primary operations of which consist of the provision of broadband services in a country in
which the Company has consolidated broadband operations at December 31, 2006 if such acquired
entity’s OCF is more than 85% of the combined pro-forma OCF of such acquired entity and the
Company’s existing broadband operations in such country, (B) an acquired entity whose primary
operations are in a country in which the Company does not have consolidated broadband operations at
December 31, 2006, provided, however, that if such acquired entity’s primary operations consist of
the provision of programming channels or services (whether owned or represented) to distributors
(whether such distributors are third parties or related parties) and the Company has consolidated
programming operations in such country at December 31, 2006, then such acquired entity will not be
an Excluded Acquisition pursuant to this clause (B), and (C) any acquired entity the primary
operations of which are neither the provision of broadband services, nor the provision of
programming channels or services to distributors. “Broadband” services or operations for purposes
hereof include the ownership or operation of one or more of a cable system; a multi-channel,
multi-point microwave distribution system; a direct-to-home satellite distribution system; a DSL,
ADSL, xDSL or equivalent system; a fiber-to-the-home system; or a WiMax or other wireless broadband
system.

          (vii) If the Base Objective has been achieved, then to the extent consistent with the
requirements of Section 162(m), the Committee will have the discretion in determining the OCF CAGR
that has been achieved to modify the methods specified above for adjusting 2006 OCF and 2008 OCF
for acquisitions and Excluded Acquisitions and to make such other adjustments to 2006 OCF or 2008
OCF as it deems appropriate for the occurrence of unusual or extraordinary events that in the
Committee’s judgment have had the effect of distorting the OCF CAGR.

     (d) Additional Objectives. With respect to any Excluded Acquisition, the Committee
and the Company’s Chief Executive Officer may agree to performance objectives that must be achieved
with respect to the acquired entity for purposes of determining the percentage of the Maximum Award
that has been earned by each Participant other than an NEO, and that may be considered in the
discretion of the Committee for purposes of determining the Earned Award of an NEO under Section
2.2(b)(ii). Such performance objectives will be in addition to, and not in lieu of, the Base
Objectives and the requirements specified in Section 2.2(b). Such additional performance
objectives may have the effect of reducing, but may not have the effect of increasing, the
percentage of the Maximum Award that would have been earned in accordance with Section 2.2(b) in
the absence of such additional performance objectives. Further, such additional performance
objectives will not affect the determination of whether the Base Objectives have been achieved,
which determination shall be made solely in accordance with Section 2.2(a).

-8-

 

2.3 Certification of Achievement.

     Prior to making any payment with respect to an Earned Award, the Committee shall certify that
the Base Objectives and other performance requirements set forth in or established pursuant to
Section 2.2 for determination of the amount of the Earned Award have been met in the manner
required for qualified performance-based compensation within the meaning of Section 162(m) of the
Code and the Regulations. The Committee may, but shall not be obligated to, engage an independent
accounting firm to perform agreed upon procedures to verify the calculation of 2006 Adjusted OCF,
2008 Adjusted OCF and the resulting OCF CAGR and any additional quantifiable performance objectives
that may be established with respect to Excluded Acquisitions.

ARTICLE III

TIMING AND METHOD OF PAYMENT

Section 3.1 Method of Payment of Earned Awards.

     The amount of a Participant’s Earned Award may be paid in (i) cash, (ii) shares of Series A
Common Stock and Series C Common Stock (“Unrestricted Plan Shares”), (iii) an Award of Restricted
Shares of Series A Common Stock and Series C Common Stock (“Restricted Plan Shares”), which may be
in the form of restricted share units until the shares covered thereby vest and are issued, or (iv)
any combination of the foregoing, as the Committee may elect from time to time. The Committee’s
exercise of its discretion with respect to the method or methods of payment may vary by
Participant. To the extent cash is elected at any time as the payment method, such election shall
be limited as necessary so that the amount of cash paid to a Participant during any calendar year
with respect to his or her Earned Award and any other Cash Awards of such Participant under the LGI
Incentive Plan does not exceed the limits specified in Section 4.1 of the LGI Incentive Plan. If
Unrestricted Plan Shares or Restricted Plan Shares are elected at any time as the payment method,
(x) the Unrestricted Plan Shares or Restricted Plan Shares so awarded to any Participant shall be
allocated between Series A Common Stock and Series C Common Stock in as nearly as practicable the
same proportion as the outstanding shares of Series A Common Stock and Series C Common Stock
reflected in the Company’s most recently filed periodic report with the Securities and Exchange
Commission, and (y) such election shall be limited as necessary so that the Unrestricted Plan
Shares and Restricted Plan Shares so awarded to any Participant, together with any other Awards to
the same Participant under the LGI Incentive Plan in the same calendar year, shall not exceed the
limits specified in Section 4.1 of the LGI Incentive Plan. In the event that the limits of Section
4.1 of the LGI Incentive Plan would be exceeded as the result of the occurrence of any acceleration
event referred to in Article IV hereof and cannot be satisfied by election of a different
combination of payment methods to the extent permitted by Article IV, then payment of the excess
amount shall be deferred to the first business day of the following calendar year.

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Section 3.2 Timing of Payments.

     Subject to the remaining provisions of this Section 3.2 and the provisions of Section 3.3 and
Article IV, a Participant’s Earned Award will be payable in six equal semi-annual installments of
the amount of the Earned Award on each March 31 and September 30, commencing March 31, 2009 and
ending September 30, 2011 (each, a “Payment Date”). If any portion of the amount payable on a
Payment Date is to be paid in Unrestricted Plan Shares, the number of whole shares issuable (and
the amount of cash payable in lieu of any fractional shares) shall be determined on the basis of
the Fair Market Value of the applicable series of Common Stock on such Payment Date. The Committee
may elect prior to the initial Payment Date or any Payment Date thereafter to grant Restricted Plan
Shares for all or any portion of the Earned Award or the unpaid balance thereof, as applicable.
Any portion of the Earned Award for which Restricted Plan Shares are granted will reduce the amount
of the remaining semi-annual installment payments on an equal pro rata basis. The number of whole
Restricted Plan Shares to be granted (and the amount of cash payable in lieu of any fractional
shares) will be determined on the basis of the Fair Market Value of a share of the applicable
series of Common Stock on the date of the Committee’s determination to grant Restricted Plan Shares
for all or a specified portion of such Participant’s Earned Award, or on such other basis as the
Committee may determine. Restricted Plan Shares so granted will vest in equal semi-annual
installments on each Payment Date during the remainder of the Service Period, commencing with the
first such date following the grant of Restricted Plan Shares (each such date being a Vesting Date
within the meaning of the LGI Incentive Plan), subject to Section 3.3 and Article IV.

Section 3.3 Reduction of Earned Award during Service Period.

     Notwithstanding any other provision of this Plan to the contrary, if a Participant receives
less than a 3.0 Annual Performance Rating for any year in the Service Period, then the Committee
may in its discretion reduce the amount of such Participant’s Earned Award that remains unpaid or
unvested at the date the Committee exercises such discretion (the “Unpaid Balance”) by such amount
(the “Forfeited Amount”), not in excess of fifty percent (50%) of the Unpaid Balance, as the
Committee shall determine; provided that the Committee may only exercise such discretion prior to
the occurrence of an Approved Transaction, Board Change or Control Purchase. If the Committee
exercises its discretion to reduce the Unpaid Balance of a Participant’s Earned Award, then, unless
the Committee otherwise determines, the Forfeited Amount shall be allocated to the forfeiture of
unvested Restricted Plan Shares and unpaid installments of such Participant’s Earned Award as
follows: (a) the Forfeited Amount will be apportioned between such Participant’s unvested
Restricted Plan Shares, on the one hand, and the aggregate amount of unpaid installments, on the
other hand, in the same proportion as each represents of the Unpaid Balance; (b) that number of
unvested Restricted Plan Shares the aggregate value of which equals the portion of the Forfeited
Amount allocated to such Participant’s unvested Restricted Plan Shares, will be forfeited
immediately, with such forfeiture applied to the pro rata reduction of the number of unvested
Restricted Plan Shares eligible for vesting on each Vesting Date thereafter; and

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(c) the portion of the Forfeited Amount allocated to the unpaid installments of such Participant’s
Earned Award will be applied to reduce the amount of each such unpaid installment pro rata. For
purposes of the foregoing, the unvested Restricted Plan Shares shall be valued using the same price
per share as was used to value such shares when the Award of Restricted Plan Shares was originally
granted.

ARTICLE IV

FORFEITURE; ACCELERATION

Section 4.1 Termination, Death or Disability during Performance Period.

     Subject to the remaining provisions of this Article IV and to Article V, in the event of
Termination of Employment at any time during the Performance Period, the applicable Participant
shall thereupon cease to be a Participant in this Plan and forfeit any rights hereunder, except as
indicated below:

     (a) If the Termination of Employment occurs after June 30, 2007 and is due to death, then
provided that the Participant’s Annual Performance Rating for any full year, if any, of the
Performance Period prior to Termination of Employment was not less than 3.0, the Participant or his
or her estate will be entitled to an amount equal to a pro rata portion of his or her Maximum Award
based on the number of full days the Participant was an employee during the Performance Period,
discounted to the present value thereof on the date payment is made. In calculating the discounted
payment, the prorated portion of the Maximum Award will be deemed to have been payable in equal
installments on each Payment Date during the Service Period and each such installment shall be
discounted to the actual date of payment at the applicable Discount Rate. Such discounted prorated
amount will be paid in a lump sum on March 15 of the calendar year immediately following the date
of death, in cash, Unrestricted Plan Shares (valued at the Fair Market Value of a share of the
applicable series of Common Stock on the date of payment) or a combination thereof as the Committee
may determine.

     (b) If the Termination of Employment occurs after June 30, 2007 and prior to January 1, 2008
and is due to Disability, then provided that the Participant’s most recent Annual Performance
Rating prior to termination of employment was not less than 3.0, the Participant will retain the
right to earn a pro rata portion of his or her Maximum Award. The amount of such Participant’s
Earned Award will be calculated in accordance with Section 2.2 with the adjustments specified in
the following sentence (the “Adjusted Earned Award”), and will be prorated based on the number of
full days the Participant was an employee during the Performance Period. For purposes of
calculating the Adjusted Earned Award, the OCF CAGR will be the annual growth rate determined, as
if the Performance Period ended on December 31, 2007, by comparing the Company’s OCF for the year
ended December 31, 2007 to the Company’s 2006 OCF, each as adjusted in a manner equivalent to the
adjustments to 2006 OCF and 2008 OCF contemplated by Section 2.2(c) (other than Section
2.2(c)(v)(x)). The prorated portion of the Adjusted Earned Award, discounted to the present value
thereof on the date payment is made, will

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be paid in a lump sum on March 15, 2008, in cash, Unrestricted Plan Shares (valued at the Fair
Market Value of a share of the applicable series of Common Stock on the date of payment) or a
combination thereof as the Committee may determine. In calculating the discounted payment, the
prorated portion of the Adjusted Earned Award will be deemed to have been payable in equal
installments on each Payment Date during the Service Period and each such installment shall be
discounted to the actual date of payment at the applicable Discount Rate.

     (c) If the Termination of Employment occurs on or after January 1, 2008 and is due to
Disability, then provided that the Participant’s Annual Performance Rating for any full year, if
any, of the Performance Period prior to termination of employment was not less than 3.0, the
Participant will retain the right to earn a pro rata portion of his or her Maximum Award. The
amount of such Participant’s Earned Award will be calculated in accordance with Section 2.2 on the
same basis as for the other Participants generally and will be prorated based on the number of full
days the Participant was an employee during the Performance Period. The prorated portion of the
Earned Award, discounted to the present value thereof on the date payment is made, will be paid in
a lump sum on March 15, 2009, in cash, Unrestricted Plan Shares (valued at the Fair Market Value of
a share of the applicable series of Common Stock on the date of payment) or a combination thereof
as the Committee may determine. In calculating the discounted payment, the prorated portion of the
Earned Award will be deemed to have been payable in equal installments on each Payment Date during
the Service Period and each such installment shall be discounted to the actual date of payment at
the applicable Discount Rate.

     (d) If the Termination of Employment occurs after June 30, 2007 and is due to termination of
the Participant by the Company or any of its Subsidiaries without Cause or resignation by the
Participant for Good Reason, then if the Committee so determines in its sole discretion, the
Participant may receive a payment hereunder in such amount and payable in such manner as the
Committee may determine, to be paid on March 15 of the calendar year immediately following the
Termination of Employment, provided that in no event shall the amount or terms of such payment be
more favorable to such Participant than if his or her employment had terminated due to Disability.

Section 4.2 Termination, Death or Disability During Service Period.

     Subject to the remaining provisions of this Article IV and to Article V, in the event of
Termination of Employment at any time during the Service Period, the applicable Participant shall,
effective upon such Termination of Employment, forfeit any Restricted Plan Shares the Vesting Date
for which has not yet occurred and all rights with respect to any remaining installments of the
balance of his or her Earned Award the Payment Date for which has not yet occurred (the “Remaining
Installments”), except as indicated below:

     (a) If the Termination of Employment is due to death or Disability, a portion of such
Participant’s unvested Restricted Plan Shares, determined as provided in Section

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4.2(c) below, will vest in full on the date of Termination of Employment and the balance
thereof will be forfeited. The portion of the Remaining Installments otherwise payable on any
remaining Payment Dates in the calendar year in which such Participant’s employment terminated will
be paid on such Payment Dates, and the balance of the Remaining Installments, discounted to the
present value thereof on the date of payment at the applicable Discount Rates, will be paid in a
lump sum on March 15 of the calendar year immediately following the Termination of Employment, in
cash, Unrestricted Plan Shares (valued at the Fair Market Value of a share of the applicable series
of Common Stock on the date of payment) or a combination thereof as the Committee may determine.

     (b) If the Termination of Employment is due to termination of the Participant by the Company
or any of its Subsidiaries without Cause or resignation by the Participant for Good Reason, then if
the Committee so determines in its sole discretion, the Participant may vest in a portion of his or
her Restricted Plan Shares and/or may receive a payment with respect to a portion of his or her
Remaining Installments, in such amount and payable in such manner as the Committee may determine,
to be paid on March 15 of the calendar year immediately following the Termination of Employment,
provided that in no event shall the terms of such vesting or amount of such payment be more
favorable to such Participant than if his or her employment had terminated due to death or
Disability.

     (c) For purposes of Section 4.2(a), the portion of a Participant’s Restricted Plan Shares that
will vest on Termination of Employment due to death or Disability will be the number of Restricted
Plan Shares of each series determined by discounting the value of the Restricted Plan Shares of
such series that would otherwise have vested on each Vesting Date thereafter to the date of
Termination of Employment at the applicable Discount Rate. The Restricted Plan Shares of each
applicable series will be valued for this purpose using the same price per share as was used to
value such shares when the Award of Restricted Plan Shares was originally granted.

Section 4.3 Change in Control.

     (a) Plan Not Continued or Assumed. If an Approved Transaction, Board Change or
Control Purchase occurs on or before the Participant’s Termination of Employment, then the
provisions of this Section 4.3(a) will apply, subject to Article V, unless (x) this Plan and the
Awards hereunder are continued on the same terms and conditions or (y) in the case of an Approved
Transaction only, the Committee as constituted prior to such Approved Transaction determines, in
its discretion, that effective provision has been made for the assumption or continuation of this
Plan and the Awards hereunder on terms and conditions that in the opinion of the Committee are as
nearly as practicable equivalent for the Participants to the terms and conditions of this Plan,
taking into account, to the extent applicable, the kind and amount of securities, cash or other
assets into or for which the Common Stock may be changed, converted or exchanged in connection with
the Approved Transaction:

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          (i) If the Approved Transaction, Board Change or Control Purchase occurs during the
Performance Period, then provided that such Participant’s Annual Performance Rating for any full
year, if any, of the Performance Period prior to such event was not less than 3.0, each Participant
will be entitled to a payment equal to his or her Maximum Award, discounted to the present value
thereof on the date payment is made, in full satisfaction of his or her rights hereunder. In
calculating the discounted payment, the Maximum Award will be deemed to have been payable in equal
installments on each Payment Date during the Service Period and each such installment shall be
discounted to the actual date of payment at the applicable Discount Rate. Such discounted amount
will be paid in a lump sum in cash promptly following the occurrence of the Board Change or Control
Purchase, but in any event no later than 30 days following such occurrence, or immediately prior to
consummation of the Approved Transaction.

          (ii) If the Approved Transaction, Board Change or Control Purchase occurs during the Service
Period, a portion of each Participant’s unvested Restricted Plan Shares determined as provided
below will vest upon the occurrence of the Board Change or Control Purchase or immediately prior to
consummation of the Approved Transaction, and the balance thereof will be forfeited. Each
Participant’s Remaining Installments, discounted to the present value thereof on the date of
payment at the applicable Discount Rates, will be paid in a lump sum in cash promptly following the
occurrence of the Board Change or Control Purchase, but in any event no later than 30 days
following such occurrence, or immediately prior to consummation of the Approved Transaction. The
accelerated vesting and payments contemplated by the two immediately preceding sentences will be in
full satisfaction of such Participant’s rights hereunder. The portion of a Participant’s
Restricted Plan Shares of each series of Common Stock that will vest on an accelerated basis in
connection with an Approved Transaction, Board Change or Control Purchase will be determined by
discounting the value of the Restricted Plan Shares of such series that would otherwise have vested
on each Vesting Date thereafter to the date of such accelerated vesting at the applicable Discount
Rate, with the Restricted Plan Shares of each series valued for this purpose using the same price
per share as was used to value such shares when the Award of Restricted Plan Shares was originally
granted.

     (b) Plan Continued or Assumed; Double Trigger. If an Approved Transaction, Board
Change or Control Purchase occurs and the provisions of Section 4.3(a) do not apply because of the
assumption or continuation of this Plan and the Awards hereunder as provided therein, then in the
event of Termination of Employment at any time thereafter and prior to the expiration of the
Service Period, the following will apply, subject to Article V:

          (i) If the Termination of Employment is due to termination of the Participant by the Company
or any of its Subsidiaries for Cause or resignation by the Participant, but excluding resignation
as a result of Disability or for Good Reason, the applicable Participant shall cease to be a
Participant in this Plan and forfeit all rights hereunder, including the right to earn any portion
of his or her Maximum Award and the

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right to payment of any Remaining Installments of his or her Earned Award and to vesting of
any then unvested Restricted Plan Shares.

          (ii) If the Termination of Employment is due to death or Disability, resignation by the
Participant for Good Reason or termination by the Company or any of its Subsidiaries without Cause,
then (x) if the Termination of Employment occurs during the Performance Period, the applicable
Participant will be entitled to an amount equal to his or her Maximum Award, discounted to the
present value thereof on the date payment is made calculated as provided in Section 4.3(a)(i), and
(y) if the Termination of Employment occurs during the Service Period, the applicable Participant
will vest on the date of Termination of Employment in a portion of his or her then unvested
Restricted Plan Shares determined as provided in Section 4.3(a)(ii), and will be entitled to
payment of his or her Remaining Installments, discounted to the present value thereof on the date
payment is made calculated as provided in Section 4.2(a). Payments under clause (x) of this
Section 4.3(b)(ii) will be made in a lump sum in cash on March 15 of the calendar year immediately
following Termination of Employment. Payments under clause (y) of this Section 4.3(b)(ii) of the
discounted value of Remaining Installments will be made at the times contemplated by Section 4.2(a)
as if such Termination of Employment was due to death or Disability, except that any such payments
will be made solely in cash. The accelerated vesting and payments contemplated by this clause (ii)
will be in full satisfaction of such Participant’s rights hereunder.

Section 4.4 Conditions to Accelerated Payment and Vesting.

     Except where a Participant’s Termination of Employment is due to death or Disability, the
accelerated payment of any portion of a Participant’s Maximum Award or Earned Award and the
accelerated vesting of Restricted Plan Shares contemplated or permitted by Sections 4.1 and 4.2
shall be contingent upon execution by the applicable Participant of a general release,
non-solicitation agreement and confidentiality agreement and, if the Committee in its discretion so
requires, a noncompetition agreement, in each case in favor of the Company and its Subsidiaries and
in substance and form approved by the Committee.

ARTICLE V

TAXES; RECOUPMENT POLICY

Section 5.1 Taxes.

     (a) The obligations of the Company to deliver shares of Common Stock or pay cash in respect of
any Award under this Plan shall be subject to applicable national, federal, state and local tax
withholding requirements, which may be satisfied through withholding of shares otherwise issuable
or then vesting, or deduction from any payment of any kind otherwise due, to the applicable
Participant hereunder.

     (b) Notwithstanding the foregoing provisions of this Plan, any amounts that would otherwise be
payable hereunder as nonqualified deferred compensation within the

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meaning of Section 409A on account of Termination of Employment (other than by reason of
death) to a Participant who is a “specified employee” as such term is defined in Section 409A, and
determined as described below, shall not be payable before the earlier of (i) the date that is six
months after the date of such Participant’s Termination of Employment, (ii) the date of such
Participant’s death or (iii) the date that otherwise complies with the requirements of Section
409A. A Participant shall be deemed a “specified employee” for the twelve-month period beginning
on April 1 of a year if such Participant is a “key employee” as defined in Section 416(i) of the
Code (without regard to Section 416(i)(5)) as of December 31 of the preceding year.

     (c) The Committee may, in its discretion, amend this Plan without the consent of the
Participant in such manner as it determines to be reasonably appropriate to either (i) reform this
Plan to comply with Section 409A and avoid the imposition of an applicable tax thereunder, or (ii)
exempt a payment provided under this Plan from coverage under Section 409A, and any such changes
may include, without limitation, modifications to the timing of any payment.

     (d) Notwithstanding anything in this Plan to the contrary, in the event it shall be determined
that any payment or distribution in the nature of compensation (within the meaning of Section
280G(b)(2) of the Code) to or for the benefit of the Participant pursuant to this Plan (“Payment”),
would be subject to the excise tax imposed by Section 4999 of the Code, or any interest or
penalties with respect to such excise tax (such excise tax, together with any such interest or
penalties, are hereinafter collectively referred to as the “Excise Tax”), the Company shall pay to
the Executive an additional payment (a “Gross-up Payment”) in an amount such that after payment by
the Participant of all taxes (including any interest or penalties imposed with respect to such
taxes), including any Excise Tax imposed on any Gross-up Payment, the Participant retains an amount
of the Gross-up Payment equal to the Excise Tax imposed upon the Payment. Any Gross-up Payment
made under this Section 5.1(d) shall be made by the end of the Company’s taxable year next
following the Participant’s taxable year in which the Participant pays the Excise Tax. For
purposes of determining the Excise Tax attributable to the Payment, no portion of the “base amount”
(within the meaning of Section 280G(b)(3) of the Code) shall be deemed to be allocable to the
Payment so as to reduce the amount of the Gross-Up Payment. All determinations required to be made
under this Section 5.1(d) shall be made by the Company’s accounting firm (the “Accounting Firm”).
The Accounting Firm shall provide detailed supporting calculations both to the Company and the
Participant. All fees and expenses of the Accounting Firm shall be borne solely by the Company.
Absent manifest error, any determination by the Accounting Firm shall be binding upon the Company
and the Participant.

Section 5.2 Recoupment Policy.

     If the Company’s consolidated financial statements for any of the years ended December 31,
2006, 2007 or 2008 are required to be restated at any time as a result of an error (whether or not
involving fraud or misconduct) and the Committee determines that if the financial results had been
properly reported the portion of the Maximum Awards

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earned by Participants would have been lower than the Earned Awards, then each Participant shall be
required to refund and/or forfeit the excess amount of his or her Earned Award. Each Participant’s
excess amount will be allocated ratably across the portions of his or her Earned Award previously
paid or vested and the portions remaining to be paid or to vest, unless otherwise determined by the
Committee. The amount allocated to portions of a Participant’s Earned Award that have previously
been paid or vested shall be promptly refunded to the Company in cash by such Participant.

ARTICLE VI

MISCELLANEOUS

Section 6.1 Employment.

     (a) Nothing contained herein shall confer upon any Participant any right to continued
employment by the Company or any of its Subsidiaries, or interfere in any way with the right of the
Company or any of its Subsidiaries, subject to the terms of any separate employment agreement to
the contrary, at any time to terminate such employment, with or without cause, or to increase or
decrease such Participant’s compensation from the rate in effect at the date hereof.

     (b) Any Award hereunder is special incentive compensation that will not be taken into account,
in any manner, as salary, earnings, compensation, bonus or benefits, in determining the amount of
any payment under any pension, retirement, profit sharing, 401(k), life insurance, salary
continuation, severance or other employee benefit plan, program or policy of the Company or any of
its Subsidiaries or any employment agreement or arrangement with a Participant.

     (c) It is a condition of participation in the Plan that, in the event of Termination of
Employment for whatever reason, whether lawful or not, including in circumstances which could give
rise to a claim for wrongful and/or unfair dismissal (whether or not it is known at the time of
Termination of Employment that such a claim may ensue), the Participant will not by virtue of such
Termination of Employment, subject to Article IV above, become entitled to any damages or severance
or any additional amount of damages or severance in respect of any rights or expectations of
whatsoever nature the Participant may have under this Plan. Notwithstanding any other provision of
this Plan, any Award hereunder will not form part of a Participant’s entitlement to remuneration or
benefits pursuant to such Participant’s employment agreement or arrangement nor does the existence
of an employment agreement between any person and the Company or any of its Subsidiaries give such
person any right or entitlement to an Award hereunder. The rights and obligations of a Participant
under the terms of his or her employment agreement, if any, will not be affected by the grant to
such Participant of an Award hereunder.

     (d) In the event of any inconsistency between the terms of this Plan and any employment,
severance or other agreement with a Participant, the terms of this Plan shall control.

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Section 6.2 LGI Incentive Plan.

     This Plan has been adopted pursuant to the LGI Incentive Plan and will be governed by and
construed in accordance with the LGI Incentive Plan, including, without limitation, Sections 11.4
(Nonalienation of Benefits), 11.12 (Unfunded Plan), 11.14 (Accounts) and 11.16 (Company’s Rights)
of the LGI Incentive Plan, and administrative interpretations of the Committee under the LGI
Incentive Plan. Notwithstanding the foregoing, in the event of any conflict between the express
terms of this Plan and the LGI Incentive Plan, the terms of this Plan will control.

Section 6.3 Governing Law.

     The Plan and all Awards hereunder shall be governed by and interpreted and construed in
accordance with the laws of the State of Delaware, without regard to principles of conflict of
laws.

Section 6.4 Jurisdiction; Waiver of Jury Trial.

     Any Participant accepting an Award hereunder shall by such acceptance be deemed to have
consented to the exclusive jurisdiction and venue of the U.S. federal court or Colorado state
courts located in Denver, Colorado in any action to construe or enforce this Plan or any Award
hereunder, to have consented to the in personam jurisdiction of any such court, to
have waived any defense of inconvenient forum or similar defenses and to have waived any right to a
trial by jury in any such action.

Section 6.5 Amendment and Termination.

     The Committee may at any time and from time to time alter, amend, suspend or terminate this
Plan in whole or in part. Except as otherwise provided in Section 5.1(c), no such alteration,
amendment, suspension or termination of this Plan may, without the consent of the Participant to
whom an Award has been made, adversely affect the rights of such Participant in such Award;
provided, however, that no such consent shall be required if the Committee determines in its sole
discretion that any such alteration, amendment, suspension or termination is necessary or prudent
pursuant to any change in applicable law.

Section 6.6 Effective Date.

     This Plan which was originally effective as of February 26, 2007, is hereby amended and
restated effective as of May 2, 2007.

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