Document:

Exhibit 10.14

 

Description of the 2007-2009 Long-Term Incentive
Plan

 

On May 16, 2007, Virgin Media Inc. (the “Company”), at a meeting
of its Compensation Committee, granted stock options and restricted stock units
to its executive officers and other key employees of the Company and its
subsidiaries.  The grants comprise the
Company’s long-term incentive program in respect of its 2007 through 2009
fiscal years.  The Company intends that
these awards, which were granted pursuant to its 2006 Stock Incentive Plan (the
“Plan”), will motivate and retain its executive officers and other key
employees of the Company and its subsidiaries and will provide them with the
financial incentive to engage in high levels of performance and thereby
increase the value of the Company to its shareholders.

 

The aggregate value of the stock options granted to each award
recipient is equal to fifty percent of his or her current annual base
salary.  The value of the options was
determined using the Black-Scholes method, and the per-share exercise price is
equal to the fair market value per share of the Company’s common stock on the
date of grant, in accordance with the Plan. 
The options have a ten-year term and will vest, subject to continued
employment, in twenty percent increments on each of January 1, 2008, 2009,
2010, 2011 and 2012, subject to accelerated vesting in the event of a change in
control of the Company.

 

Each restricted stock unit represents a contractual right to receive,
upon vesting, one share of common stock of the Company or cash equal to the
value of one share of common stock on the vesting date (at the Company’s
option).  The restricted stock units will
vest if (1) the Company meets certain performance goals based on its
long-term model in respect of the period from January 1, 2007 through December 31,
2009 and (2) the award recipient remains continuously employed by the
Company or any of its subsidiaries through the payment date, which will be not
later than April 30, 2010.  Each
restricted stock unit agreement establishes a minimum level of performance
below which no restricted stock units will vest, an intermediate level of
performance at which half of the restricted stock units (with a value of 50% of
base salary (based on the value of the restricted stock units on the grant
date)) will vest, and a maximum level of performance at which all of the
restricted stock units (with a value of 100% of base salary (based on the value
of the restricted stock units on the grant date)) will vest.  Between these thresholds, vesting will be
extrapolated on a linear basis.  If the
award recipient’s employment terminates prior to the payment date, the
restricted stock units will be forfeited. 
The vesting of the restricted stock units will not accelerate in the
event of a change in control of the Company.

 

Options to purchase an aggregate of 2,139,145 shares of common stock
and an aggregate of 1,232,782 restricted stock units were awarded to
approximately 102 award recipients. 
Awards will be made in the future to employees who are not executive
officers of the Company, but these awards are not expected to be material
(individually or in the aggregate).Exhibit 10.18

 

Description of the 2009-2011 Long-Term Incentive
Plan

 

On June 10, 2009, the compensation committee (the “Committee”) of
the Board of Directors of Virgin Media Inc. (the “Company”) approved the
2009-2011 long-term incentive plan (the “2009 LTIP”), which includes the grant
of stock options and restricted stock units to its executive officers
(excluding the Chairman and the Chief Executive Officer) and other key
employees of the Company and its subsidiaries.  
The 2009 LTIP is comprised of (1) option grants that vest based
solely on time in five equal annual installments beginning January 1,
2010, and (2) restricted stock unit grants with cliff-vesting after three
years that are linked to the achievement of performance criteria over the
three-year period. On June 12, 2009 (the “Grant Date”), the Company
granted the stock options and restricted stock units under the 2009 LTIP to the
eligible participants.

 

Fair Value of the Awards

 

The grant date fair value of the options awarded under the 2009 LTIP
was determined using the Black-Scholes pricing model, and the exercise price is
equal to the average of the high and low stock prices of the Company’s common
stock on the Grant Date.  The options
will have a ten-year term and will vest, subject to continued employment, in
twenty percent increments on each of January 1, 2010, 2011, 2012, 2013 and
2014, subject to accelerated vesting in the event of a change in control of the
Company.

 

The grant date fair value of the restricted stock units awarded under the
2009 LTIP was based on the average of the high and low stock prices of the
Company’s common stock on the Grant Date. The restricted stock units will vest
if (1) the Company meets certain performance goals based on its long-term
model for cumulative group simple cash flow in respect of the period from January 1,
2009 through December 31, 2011 and (2) the award recipient remains
continuously employed by the Company or any of its subsidiaries through the
payment date, which will be not later than April 30, 2012.

 

Performance Criteria for the Restricted Stock Units

 

The performance criteria for the restricted stock units is based on a
cumulative group simple cash flow in respect of the period from January 1,
2009 through December 31, 2011, being operating income before
depreciation, amortization, goodwill and intangible asset impairments and
restructuring and other charges, less fixed asset additions on an accrual basis
(excluding additions in respect of Electronic Equipment Waste Obligations
accrued under FASB Staff Position FAS 143-1). 
The performance criteria include minimum and on-target performance
levels. Each restricted stock unit agreement will establish a minimum level of
performance below which no restricted stock units will vest and an on-target
level of performance at which all of the restricted stock units (with a grant
date fair value of 50% of base salary (based on the value of the restricted
stock units on the Grant Date)) will vest. 
Between these levels, vesting will be extrapolated on a linear basis. If
the performance is below the minimum level, the restricted stock units will
lapse.

 

 

Equivalent payments may be made in cash rather than common stock at the
Committee’s discretion. If the award recipient’s employment terminates prior to
the payment date or if the recipient has not entered into new terms and
conditions of employment with the Company or any of its subsidiaries on terms
satisfactory to the Company on or before July 31, 2009 (unless otherwise
agreed by the Company), the restricted stock units will be forfeited.  The vesting of the restricted stock units
will not accelerate in the event of a change in control of the Company.

 

2009 LTIP Grants

 

Options to purchase an aggregate of approximately 4.0 million shares of
common stock and an aggregate of approximately 1.6 million restricted stock
units (based on the on-target level of 100% being achieved) were awarded to 117
award recipients.  The exercise price of
the option is $8.73 per share, being the average of the high and low stock prices,
on the Grant Date.  The options may not
be exercised by a recipient unless such person has entered into new terms and
conditions of employment with the Company or any of its subsidiaries on terms
satisfactory to the Company on or before July 31, 2009.   If the exercise condition is not satisfied,
the options will terminate in full on August 1, 2009 unless otherwise
agreed by the Company.

 

Additional awards under the 2009 LTIP may be made during the 2009
fiscal year.Exhibit 10.23

 

Description of the 2010-2012 Long-Term Incentive
Plan

 

On January 7, 2010, the compensation committee (the “Committee”)
of the Board of Directors of Virgin Media Inc. (the “Company”) approved the
Company’s 2010-2012 long-term incentive plan (the “2010 LTIP”), which includes
the grant of stock options and restricted stock units to its executive officers
(excluding the Chairman and the Chief Executive Officer) and other key
employees of the Company and its subsidiaries. 
The 2010 LTIP is designed to incentivize senior managers to meet
stringent business performance targets, which are aligned with driving
long-term stockholder value, over a three-year period.  The 2010 LTIP consists of awards of stock
options and performance-based restricted stock units under the Company’s Stock
Incentive Plan.

 

Overall Structure

 

The 2010 LTIP is comprised of (1) option grants that vest based
solely on time in approximately twenty percent increments, beginning January 1,
2011, and (2) restricted stock unit grants with cliff-vesting after three
years that are linked to the achievement of performance criteria over the
three-year period (January 1, 2010 to December 31, 2012), in each
case, subject to continued employment with the Company to the vesting
date.  Options with a face value of 100%
of the recipient’s base annual salary were granted to all eligible employees,
subject to the conditions above.  Of this
total, options with a face value of £30,000 per eligible employee were granted
under the CSOP.  These options, to the
extent granted to US nationals, are also intended to qualify as Incentive Stock
Options under applicable US tax legislation. 
For senior executives, restricted stock units with a face value of up to
150% of the recipient’s annual base salary were granted, subject to the
conditions above.  For other eligible
employees, restricted stock units with a face value of up to 75% of the
recipient’s annual base salary were granted, subject to the conditions above.

 

The options will have a ten-year term. 
The vesting of the options will accelerate in the event that there is a
change in control of the Company and the individual is terminated for good
reason or without cause within 12 months of the change of control event. If
CSOP option vesting is accelerated, those options to which accelerated vesting
is applied may in certain circumstances cease to qualify for the favorable tax
treatment otherwise applicable (unless accelerated vesting is for certain
specific good leaver reasons) to CSOP options and the tax treatment will be
that applicable to options granted otherwise under the 2010 LTIP.

 

Grant Date

 

The options were granted on January 7, 2010 with the exception of
the CSOP options, which were granted on January 8, 2010 following HMRC’s
approval of the CSOP.  The restricted
stock units were granted on January 7, 2010.

 

 

Value of the Awards

 

The grant date face value of the options awarded under the 2010 LTIP is
determined using the average of the high and low stock prices of the Company’s
common stock on the grant date, and the exercise price is equal to the average
of the high and low stock prices of the Company’s common stock on the grant
date.  The grant date face value of the
restricted stock units awarded under the 2010 LTIP is determined using the
average of the high and low stock prices of the Company’s common stock on the
grant date.

 

Performance Criteria for the Restricted Stock Units

 

The performance criteria for the restricted stock units is as follows: (i) 50%
based on achievement of a cumulative simple cash flow (“SCF”) target in respect
of the period from January 1, 2010 through December 31, 2012, being
operating income before depreciation, amortization, goodwill and other
intangible asset impairments and restructuring and other charges, less fixed
asset additions on an accrual basis (excluding additions in respect of
Electronic Equipment Waste Obligations accrued under the Asset Retirement and
Environmental Obligations Topic of the FASB Accounting Standards Codification)
and (ii) 50% based on total shareholder value (“TSV”) performance in
respect of the period from January 1, 2010 through December 31, 2012
relative to a pre-determined performance comparator group.  For senior executives, vesting of any
SCF-based award with grant date face value of greater than 50% of the recipient’s
annual base salary also requires top quartile TSV performance.  Further, if TSV growth is negative, the
number of restricted stock units vesting based on TSV performance (except in
respect of the SCF-based award) will be reduced by half from the percentage
otherwise applicable.

 

The performance criteria include minimum and maximum performance
levels. Each restricted stock unit agreement will establish a minimum level for
each performance condition below which no restricted stock units will vest and
a maximum level of performance at which all of the restricted stock units will
vest.  If the performance is below the
minimum level, the restricted stock units subject to such performance condition
will lapse.

 

Equivalent payments may be made in cash rather than common stock at the
Committee’s discretion. If the award recipient’s employment terminates prior to
the payment date, the restricted stock units will be forfeited.  The vesting of the restricted stock units
will not accelerate in the event of a change in control of the Company.

 

2010 LTIP Grants

 

Options to purchase an aggregate of approximately 1.7 million shares of
common stock and an aggregate of approximately 1.7 million restricted stock
units (based on the maximum target level being achieved) were awarded to 122
award recipients.  The exercise price of
the options granted on January 7, 2010 is $17.16 per share and the
exercise price of the CSOP options granted on January 8, 2010 is $17.12
per share, in each case being the average of the high and low stock prices on
the relevant grant date.  Additional
awards under the 2010 LTIP may be made during the 2010 fiscal year.

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