Document:

Exhibit 10.1

 

OMNIBUS
AMENDMENT

 

OMNIBUS AMENDMENT

DATED AS OF MARCH 21, 2008

BY AND AMONG

USS RECEIVABLES COMPANY, LTD.,

UNITED STATIONERS FINANCIAL SERVICES LLC,

UNITED STATIONERS SUPPLY CO.,

FALCON ASSET SECURITIZATION COMPANY LLC,

PNC BANK, NATIONAL ASSOCIATION,

MARKET STREET FUNDING LLC,

JPMORGAN CHASE BANK, N.A. 

(successor by merger to BANK ONE, NA (Main Office Chicago)),

FIFTH THIRD BANK

and

THE BANK OF NEW YORK TRUST COMPANY, N.A. 

(successor in interest to JPMORGAN CHASE BANK, N.A.), as Trustee

 

 

AMENDMENT NO. 5 TO SERIES 2004-1 SUPPLEMENT

 

AMENDMENT NO. 6 TO SERIES 2003-1 SUPPLEMENT

 

AMENDMENT NO. 6 TO SECOND AMENDED AND RESTATED
SERIES 2000-2

SUPPLEMENT

 

AMENDMENT NO. 2 TO SECOND AMENDED AND RESTATED
POOLING

AGREEMENT

 

 

1

 

OMNIBUS
AMENDMENT

 

This OMNIBUS AMENDMENT (this “Omnibus Amendment”)
is entered into as of March 21, 2008 by and among USS Receivables Company,
Ltd., a Cayman Islands limited liability company (“USSR”), United Stationers
Financial Services LLC, an Illinois limited liability company (“USFS”),
United Stationers Supply Co., an Illinois corporation (“USSC”, and
together with USSR and USFS, the “USS Companies”), Falcon Asset
Securitization Company LLC, a Delaware limited liability company (“Falcon”),
PNC Bank, National Association, as Administrator under and as defined in the Series 2000-2
Supplement referred to below (“PNC”), Market Street Funding LLC (“Market
Street”), JPMorgan Chase Bank, N.A. (successor by merger to Bank One, NA
(Main Office Chicago)), as the Funding Agent and the sole APA Bank under and as
defined in the Series 2003-1 Supplement referred to below (“JPMorgan
Chase Bank” or the “Funding Agent”), Fifth Third Bank, as
Administrator under and as defined in the Series 2004-1 Supplement
referred to below (“Fifth Third”) and The Bank of New York Trust
Company, N.A. (successor in interest to JPMorgan Chase Bank, N.A.), as Trustee
(the “Trustee”).

 

RECITALS

 

WHEREAS, USSR, USFS, as Servicer (the “Servicer”),
and the Trustee are parties to that certain Second Amended and Restated Pooling
Agreement, dated as of March 28, 2003 (as amended, supplemented, restated
or otherwise modified and in effect from time to time, the “Pooling
Agreement”);

 

WHEREAS, USSR, the Servicer, Fifth Third and the
Trustee are parties to that certain Series 2004-1 Supplement, dated as of March 26,
2004, to the Pooling Agreement, as amended by the Omnibus Amendment with
respect thereto, dated as of March 25, 2005, as further amended by the Omnibus
Amendment with respect thereto, dated as of March 24, 2006, as further
amended by the Omnibus Amendment with respect thereto, dated as of March 23,
2007 and as further amended by the Omnibus Amendment with respect thereto,
dated as of July 26, 2007 (as so amended and as further amended,
supplemented, restated or otherwise modified and in effect from time to time,
the “Series 2004-1 Supplement”);

 

WHEREAS, USSR, the Servicer, Falcon, JPMorgan Chase
Bank and the Trustee are parties to that certain Series 2003-1 Supplement,
dated as of March 28, 2003, to the Pooling Agreement, as amended by the
Omnibus Amendment with respect thereto, dated as of March 26, 2004, as
further amended by the Omnibus Amendment with respect thereto, dated as of March 25,
2005, as further amended by the Omnibus Amendment with respect thereto, dated
as of March 24, 2006, as further amended by the Omnibus Amendment with
respect thereto, dated as of March 23, 2007 and as further amended by the
Omnibus Amendment with respect thereto, dated

 

 

as of July 26, 2007 (as
so amended and as further amended, supplemented, restated or otherwise modified
and in effect from time to time, the “Series 2003-1 Supplement”);

 

WHEREAS, USSR, the Servicer, PNC, Market Street and
the Trustee are parties to that certain Second Amended and Restated Series 2000-2
Supplement, dated as of March 28, 2003, to the Pooling Agreement, as
amended by the Omnibus Amendment with respect thereto, dated as of March 26,
2004, as further amended by the Omnibus Amendment with respect thereto, dated
as of March 25, 2005, as further amended by the Omnibus Amendment with
respect thereto, dated as of March 24, 2006, as further amended by the
Omnibus Amendment with respect thereto, dated as of March 23, 2007 and as
further amended by the Omnibus Amendment with respect thereto, dated as of July 26,
2007 (as so amended and as further amended, supplemented, restated or otherwise
modified and in effect from time to time, the “Series 2000-2 Supplement”);

 

WHEREAS, each of the parties hereto now desires to
amend each of the Pooling Agreement, the Series 2004-1 Supplement, the Series 2003-1
Supplement and the Series 2000-2 Supplement (collectively, the “Amended
Documents”), in each case, subject to the terms and conditions hereof.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the premises,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto hereby agree as follows:

 

Section 1.                                            Definitions
Used Herein.  Capitalized
terms used herein and not otherwise defined herein shall have the respective
meanings set forth for such terms in the Pooling Agreement or, if not defined
therein, the Series 2004-1 Supplement, Series 2003-1 Supplement or Series 2000-2
Supplement, as applicable.

 

Section 2.                                            Amendments to
the Series 2004-1 Supplement.  Immediately upon the satisfaction of each of
the conditions precedent set forth in Section 6 of this Omnibus Amendment,
the Series 2004-1 Supplement is hereby amended, effective as of the date
first written above, as follows:

 

(a)                                  by amending and restating the definition of “Accrual Period”
appearing in Section 1.1 thereof as follows:

 

“Accrual Period”
shall mean the period from and including the first day of each calendar
month to and including the last day of such calendar month, provided that the
final Accrual Period hereunder shall 

 

3

 

terminate on the date of the final payment made
hereunder on the VFC Certificate.

 

(b)                                 by amending and restating the definition of “Commitment
Expiry Date” appearing in Section 1.1 thereof as follows:

 

“Commitment
Expiry Date” shall mean March 20, 2009 (as may be extended
for up to an additional 364 days from time to time in writing by the Committed
Purchaser and the Administrator in their sole discretion).

 

(c)                                  by amending and restating the definition of “Commitment
Termination Date” appearing in Section 1.1 thereof as follows:

 

“Commitment
Termination Date” shall mean the earlier to occur of (i) the
date on which the Purchase Limit has been reduced to zero pursuant to Section 2.8
of this Supplement, and (ii) March 18, 2011.

 

(d)                                 by amending and restating the definition of “Rate Period”
appearing in Section 1.1 thereof as follows (solely for convenience, changed
language is italicized):

 

“Rate
Period” shall mean, unless otherwise agreed by the Administrator
and the Company, with respect to any Funding Tranche, (i) initially the
period commencing on (and including) the date of the initial purchase or
funding of such Funding Tranche and ending on (but excluding) the first day of the next following calendar month,
and (ii) thereafter each period commencing on (and including) the first day of each calendar month and ending on
the first day of the next following calendar month; provided,
that:

 

(A)                              any Rate Period with respect to any Funding Tranche not
funded at the CP Rate which would otherwise end on a day which is not a
Business Day shall be extended to the next succeeding Business Day; provided,
however, if Yield in respect of such Rate Period is computed by reference to
the Euro-Rate, and such Rate Period would otherwise end on a day which is not a
Business Day, and there is no subsequent Business Day in the same calendar
month as such day, such Rate Period shall end on the next preceding Business
Day;

 

(B)                                in the case of any Rate Period for any Funding Tranche which
commences before the occurrence of an Early Amortization Event and would
otherwise end on a date occurring after the occurrence of an Early Amortization
Event, such Rate Period shall end on the date of the 

 

4

 

occurrence of an Early Amortization
Event and the duration of each Rate Period which commences on or after the
occurrence of an Early Amortization Event shall be of such duration as shall be
selected by the Administrator; and

 

(C)                                any Rate Period in respect of which Yield is computed by
reference to the CP Rate may be terminated at the election of, and upon notice
thereof to the Company and the Servicer by, the Administrator any time, in
which case the Funding Tranche allocated to such terminated Rate Period shall
be allocated to a new Rate Period commencing on (and including) the date of
such termination and ending on (but excluding) the first day of
the next following calendar month and shall accrue Yield at the
Alternate Rate.

 

(e)                                  by amending and restating paragraphs (b) and (c) of
Section 2.9 as follows (solely for convenience, changed language is
italicized):

 

(b)  The Servicer shall
distribute pursuant to subsection 3A.6(b), from amounts on deposit in the Series 2004-1
Collection Sub-account, to the 
Administrator, for the account of the Committed Purchaser, on each
Distribution Date, a commitment fee with respect to the
Accrual Period most recently ended on or prior to such date (the “Commitment Fee”) at the
Commitment Fee Rate of the average daily excess of 102% of the Purchase Limit
over the average Series 2004-1 Purchaser Invested Amount during such
Accrual Period for the actual number of days in such Accrual Period.  The Commitment Fee shall be payable (i) monthly
in arrears on each Distribution Date for such Accrual Period and
(ii) on the Facility Termination Date. 
To the extent that funds on deposit in the Series 2004-1 Collection
Sub-account at any such date are insufficient to pay the Commitment Fee due on
such date, the Servicer shall so notify the Company and the Company shall
immediately pay the Administrator the amount of any such deficiency.

 

(c)  The Servicer shall
distribute pursuant to subsection 3A.6(b), from amounts on deposit in the Series 2004-1
Collection Sub-account, to the Administrator, for the account of the Committed
Purchaser, on each Distribution Date, a utilization fee (the “Utilization Fee”)
with respect to the Accrual Period most recently ended on or prior to
such date at the Utilization Fee Rate of the average daily Series 2004-1
Purchaser Invested Amount during such period for the actual number of days in
such Accrual Period.  The Utilization Fee
shall be payable (i) monthly in arrears on each Distribution Date for such Accrual Period and (ii) on the Facility
Termination Date.  To the extent that
funds on deposit in the Series 2004-1 Collection Sub-account at any such
date are insufficient to pay the Utilization Fee due on such date, 

 

5

 

the Servicer shall so notify the Company and the
Company shall immediately pay the Administrator the amount of any such
deficiency.

 

(f)                                    by amending and restating the first sentence of paragraph (a) of
Section 3A.4 as follows (solely for convenience, added language is
italicized):

 

On or before the Business Day preceding the each
Distribution Date, the Administrator shall notify the Servicer and the Trustee
of the Series 2004-1 Monthly Interest Amount for the most recent Accrual Period ending on or before the related Distribution Date.

 

(g)                                 by amending and restating the first sentence of paragraph (c) of
Section 3A.4 as follows (solely for convenience, added language is
italicized):

 

On each Distribution Date, the Servicer shall
determine the excess, if any (the “Interest Shortfall”),
of (i) the Series 2004-1 Monthly Interest for the most recent Accrual Period ending on or before such Distribution Date over (ii) the
amount which will be available to be distributed to the Purchasers on such
Distribution Date in respect thereof pursuant to this Supplement.

 

Section 3.                                            Amendments to
the Series 2003-1 Supplement.  Immediately upon the satisfaction of each of
the conditions precedent set forth in Section 6 of this Omnibus Amendment,
Section 1.1 of the Series 2003-1 Supplement is hereby amended,
effective as of the date first written above, as follows:

 

(a)                                  by amending and restating the definition of “Commitment
Expiry Date” as follows:

 

“Commitment
Expiry Date” shall mean March 20, 2009 (as may be extended
for up to an additional 364 days from time to time in writing by Initial
Purchaser, the Funding Agent and the APA Banks).

 

(b)                                 by amending and restating the definition of “Commitment
Termination Date” as follows:

 

“Commitment
Termination  Date” shall mean
the earliest to occur of (i) the date on which the Aggregate Commitment
Amount has been reduced to zero pursuant to Section 2.7 of this
Supplement, (ii) the Commitment Expiry Date, (iii) the Optional
Termination Date, (iv) the date on which the Early Amortization Period is
declared to commence or automatically commences and (v) March 18,
2011.

 

6

 

Section 4.                                            Amendments to
the Series 2000-2 Supplement.  Immediately upon the satisfaction of each of
the conditions precedent set forth in Section 6 of this Omnibus Amendment,
Section 1.1 of the Series 2000-2 Supplement is hereby amended,
effective as of the date first written above, as follows:

 

(a)                                  by amending and restating the definition of “Accrual Period”
appearing in Section 1.1 thereof as follows:

 

“Accrual
Period”  shall mean the period from and including the first day of
each calendar month to and including the last day of such calendar month, provided
that the final Accrual Period hereunder shall terminate on the date of the
final payment made hereunder on the VFC Certificate.

 

(b)                                 by amending and restating the definition of “Commitment
Expiry Date” as follows:

 

“Commitment
Expiry Date” shall mean March 20, 2009 (as may be extended
for up to an additional 364 days from time to time in writing by the Committed
Purchaser and the Administrator in their sole discretion).

 

(c)                                  by amending and restating the definition of “Commitment
Termination Date” as follows:

 

“Commitment
Termination  Date” shall mean
the earlier to occur of (i) the date on which the Purchase Limit has been
reduced to zero pursuant to Section 2.8 of this Supplement, and (ii) March 18,
2011.

 

(d)                                 by amending and restating the definition of “Rate Period”
appearing in Section 1.1 thereof as follows (solely for convenience,
changed language is italicized):

 

“Rate
Period” shall
mean, unless otherwise agreed by the Administrator and the Company, with
respect to any Funding Tranche, (i) initially the period commencing on
(and including) the date of the initial purchase or funding of such Funding
Tranche and ending on (but excluding) the first
day of the next following calendar month, and (ii) thereafter
each period commencing on (and including) the
first day of each calendar month and ending on the first day of the next
following calendar month; provided, that:

 

(A)                              any Rate Period with respect to any Funding Tranche not
funded at the CP Rate which would otherwise end on a day which is not a Business
Day shall be extended to the next succeeding 

 

7

 

Business Day; provided, however, if
Yield in respect of such Rate Period is computed by reference to the Euro-Rate,
and such Rate Period would otherwise end on a day which is not a Business Day,
and there is no subsequent Business Day in the same calendar month as such day,
such Rate Period shall end on the next preceding Business Day;

 

(B)                                in the case of any Rate Period for any Funding Tranche which
commences before the occurrence of an Early Amortization Event and would
otherwise end on a date occurring after the occurrence of an Early Amortization
Event, such Rate Period shall end on the date of the occurrence of an Early
Amortization Event and the duration of each Rate Period which commences on or
after the occurrence of an Early Amortization Event shall be of such duration
as shall be selected by the Administrator; and

 

(C)                                any Rate Period in respect of which Yield is computed by
reference to the CP Rate may be terminated at the election of, and upon notice
thereof to the Company and the Servicer by, the Administrator any time, in
which case the Funding Tranche allocated to such terminated Rate Period shall
be allocated to a new Rate Period commencing on (and including) the date of
such termination and ending on (but excluding) the first day of
the next following calendar month and shall accrue Yield at the
Alternate Rate.

 

(e)                                  by amending and restating paragraphs (b) and (c) of
Section 2.9 as follows (solely for convenience, changed language is
italicized):

 

(b)  The Servicer shall
distribute pursuant to subsection 3A.6(b), from amounts on deposit in the Series 2000-2
Collection Sub-account, to the Administrator, for the account of the Committed
Purchaser, on each Distribution Date, a commitment fee with respect to the most recent Accrual Period ending on or prior to such date (the “Commitment Fee”) at the
Commitment Fee Rate of the average daily excess of 102% of the Purchase Limit
over the average Series 2000-2 Purchaser Invested Amount during such
Accrual Period for the actual number of days in such Accrual Period.  The Commitment Fee shall be payable (i) monthly
in arrears on each Distribution Date and (ii) on the Facility Termination
Date.  To the extent that funds on
deposit in the Series 2000-2 Collection Sub-account at any such date are
insufficient to pay the Commitment Fee due on such date, the Servicer shall so
notify the Company and the Company shall immediately pay the Administrator the
amount of any such deficiency.

 

(c)  The Servicer shall
distribute pursuant to subsection 3A.6(b), from amounts on deposit in the Series 2000-2
Collection Sub-account, to the 

 

8

 

Administrator, for the account of the Committed
Purchaser, on each Distribution Date, a utilization fee (the “Utilization
Fee”) with respect to the Accrual
Period most recently ended on or prior to such date at the Utilization Fee Rate of the
average daily Series 2000-2 Purchaser Invested Amount during such period
for the actual number of days in such Accrual Period.  The Utilization Fee shall be payable (i) monthly
in arrears on each Distribution Date for such Accrual Period
and (ii) on the Facility Termination Date. 
To the extent that funds on deposit in the Series 2000-2 Collection
Sub-account at any such date are insufficient to pay the Utilization Fee due on
such date, the Servicer shall so notify the Company and the Company shall
immediately pay the Administrator the amount of any such deficiency.

 

(f)                                    by amending and restating the first sentence of paragraph (a) of
Section 3A.4 as follows (solely for convenience, added language is
italicized):

 

On or before the Business Day preceding the each
Distribution Date, the Administrator shall notify the Servicer and the Trustee
of the Series 2000-2 Monthly Interest Amount for the most recent Accrual Period ending on or before the related Distribution Date.

 

(g)                                 by amending and restating paragraph (c) of Section 3A.4
as follows (solely for convenience, added language is italicized):

 

On each Distribution Date, the Servicer shall
determine the excess, if any (the “Interest Shortfall”),
of (i) the Series 2000-2 Monthly Interest for the most recent Accrual
Period ending on or before such Distribution Date over (ii) the amount
which will be available to be distributed to the Purchasers on such
Distribution Date in respect thereof pursuant to this Supplement.  If the Interest Shortfall with respect to the Accrual Period ended most recently on or prior to
any Distribution Date is greater than zero, an additional amount (“Additional
Interest”) equal to the product of (A) the number of days until such
Interest Shortfall shall be repaid divided by 365 (or 366, as the case may be),
(B) the Base Rate plus 2.0% and (C) such Interest Shortfall (or the
portion thereof which has not been paid to the Committed Purchaser) shall be
payable as provided herein with respect to the VFC Certificates on each
Distribution Date following such Distribution Date to but excluding the
Distribution Date on which such Interest Shortfall is paid to the VFC
Certificateholders.

 

(h)                                 by amending and restating clause (iii) of paragraph (a) of
Section 3A.6 as follows (solely for convenience, added language is
italicized):

 

9

 

(iii) ratably, to the payment
of all accrued and unpaid Series 2000-2 Monthly Interest payable with respect to the Accrual Period ended most recently on or prior to such
Distribution Date (the “Monthly Interest Payment”), plus the amount of any
Monthly Interest Payment previously due but not distributed to the
Administrator, for further distribution to the Committed Purchaser on a prior
Distribution Date, plus the amount of any Additional Interest with respect to the Accrual Period ended most recently on or prior to such
Distribution Date and any Additional Interest previously due but not
distributed to the Administrator, for further distribution to the Committed
Purchaser on a prior Distribution Date, plus all accrued and unpaid fees under
the Fee Letter (including the Commitment Fee and the Utilization Fee);

 

Section 5.                                Amendments to
the Pooling Agreement. 
Immediately upon the satisfaction of each of the conditions precedent
set forth in Section 6 of this Omnibus Amendment, Section 1.1 of the
Pooling Agreement is hereby amended by amending and restating clause (i) of
the definition of “Eligible Receivable” 
as follows:

 

(i)  (A) it is not a Receivable for which the applicable
Seller (or any of its transferees) has established an offsetting specific
reserve (other than a specific default or loss reserve), provided that a
Receivable subject only in part to the foregoing shall be an Eligible
Receivable to the extent not so subject, and (B) it is not a Receivable
for which the applicable Seller (or any of its transferees) has established a
specific default or loss reserve in the amount of 100% of such Receivable;

 

Section 6.                                            Conditions to
Effectiveness of this Omnibus Amendment.  The effectiveness of this Omnibus Amendment
is subject to the satisfaction of the following conditions precedent:

 

(a)                                  Omnibus Amendment.  The Trustee shall have received, on or before
the date hereof, executed counterparts of this Omnibus Amendment, duly executed
by each of the parties hereto.

 

(b)                                 Representations and Warranties.  As of the date hereof, both before and after
giving effect to this Omnibus Amendment, all of the representations and
warranties of the USS Companies contained in each Amended Document, as amended
hereby and in each other Transaction Document (other than those that speak
expressly only as of a different date) shall be true and correct in all
material respects as though made on the date hereof (and by its execution
hereof, each of the USS Companies shall be deemed to have represented and
warranted such).

 

10

 

(c)           No Early Amortization Event. 
As of the date hereof, both before and after giving effect to this
Omnibus Amendment, no Early Amortization Event shall have occurred and be
continuing (and by its execution hereof, each of the USS Companies shall be
deemed to have represented and warranted such).

 

(d)           Payment of Fees.  The USS
Companies shall have paid all costs, fees and expenses due and owing, by any of
them, pursuant to the Fee Letter.

 

Section 7.               Miscellaneous.

 

(a)           Effect; Ratification. 
The amendments set forth herein are effective solely for the purposes
set forth herein and shall be limited precisely as written, and shall not be
deemed to (i) be a consent to any amendment, waiver or modification of any
other term or condition of any Amended Document or of any other instrument or
agreement referred to therein; or (ii) prejudice any right or remedy which
any of the Trustee, the Funding Agent, Falcon, PNC, Fifth Third or Market
Street may now have or may have in the future under or in connection with any
Amended Document, as amended hereby or any other instrument or agreement
referred to therein.  Each reference in
the Series 2004-1 Supplement to “this Supplement,” “herein,” “hereof” and
words of like import and each reference in the other Transaction Documents to
the “Series 2004-1 Supplement” shall mean the Series 2004-1
Supplement as amended hereby.  Each
reference in the Series 2003-1 Supplement to “this Supplement,” “herein,” “hereof”
and words of like import and each reference in the other Transaction Documents
to the “Series 2003-1 Supplement” shall mean the Series 2003-1
Supplement as amended hereby.  Each
reference in the Series 2000-2 Supplement to “this Supplement,” “herein,” “hereof”
and words of like import and each reference in the other Transaction Documents
to the “Series 2000-2 Supplement” shall mean the Series 2000-2
Supplement as amended hereby.  This
Omnibus Amendment shall be construed in connection with and as part of each
Amended Document, as amended hereby, respectively, and all terms, conditions,
representations, warranties, covenants and agreements set forth in each such
agreement and each other instrument or agreement referred to therein, except as
herein amended, are hereby ratified and confirmed and shall remain in full
force and effect.

 

(b)           Transaction Documents. 
This Omnibus Amendment is a Transaction Document executed pursuant to
the Amended Documents and shall be construed, administered and applied in
accordance with the terms and provisions thereof.

 

11

 

(c)           Costs, Fees and Expenses. 
The USS Companies agree to reimburse each of the Trustee, the Funding
Agent, Falcon, PNC, Fifth Third and Market Street on demand for all costs, fees
and expenses (including the reasonable fees and expenses of counsels to each of
the Trustee, the Funding Agent, Falcon, PNC, Fifth Third and Market Street)
incurred in connection with the preparation, execution and delivery of this
Omnibus Amendment.

 

(d)           Counterparts.  This Omnibus
Amendment may be executed in two or more counterparts (and by different parties
on separate counterparts), each of which shall be an original, but all of which
together shall constitute one and the same instrument.

 

(e)           Severability.  If any one or
more of the covenants, agreements, provisions or terms of this Omnibus
Amendment shall for any reason whatsoever be held invalid, then such covenants,
agreements, provisions or terms shall be deemed severable from the remaining
covenants, agreements, provisions or terms of this Omnibus Amendment and shall
in no way affect the validity or enforceability of the other provisions of this
Omnibus Amendment.

 

(f)            GOVERNING LAW.  THIS OMNIBUS
AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

 

(g)           On the date hereof, (i) Fifth Third is
the holder of one hundred percent of the interest in the Series 2004-1 Supplement
VFC Certificate, (ii) Falcon is the holder of one hundred percent of the
interest in the Series 2003-1 Supplement VFC Certificate and (iii) Market
Street is the holder of one hundred percent of the interest in the Series 2000-2
Supplement VFC Certificate.  Each of
Fifth Third, Falcon and Market Street hereby authorizes and directs the Trustee
(as defined in each Supplement) to execute and deliver this Omnibus Amendment.

 

12

 

IN WITNESS WHEREOF, the parties hereto have
caused this Omnibus Amendment to be executed and delivered by their respective
duly authorized officers as of the date first written above.

 

 

	
   

  	
  USS
  RECEIVABLES COMPANY, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNITED
  STATIONERS FINANCIAL

  SERVICES LLC, as Servicer under and as

  defined in the Pooling Agreement and the

  Supplements

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
   

  	
  FIFTH THIRD
  BANK, as Administrator and

  Committed Purchaser under and as defined in

  the Series 2004-1 Supplement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
   

  	
  JPMORGAN
  CHASE BANK, N.A. (successor

  by merger to BANK ONE, NA (Main Office

  Chicago)), individually as the sole APA Bank

  and as Funding Agent under and as defined in

  the Series 2003-1 Supplement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Ronald J.
  Atkins

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FALCON ASSET
  SECURITIZATION

  COMPANY LLC, as Initial Purchaser under

  and as defined in the Series 2003-1 Supplement

  
	
   

  	
  By:

  	
  JPMorgan
  Chase Bank, N.A. (successor

  
	
   

  	
   

  	
  by Merger to
  Bank One, NA (Main

  
	
   

  	
   

  	
  Office
  Chicago)),

  
	
   

  	
  Its:

  	
  Attorney-In-Fact

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
						

 

 

	
   

  	
  PNC BANK,
  NATIONAL ASSOCIATION,

  
	
   

  	
  as
  Administrator under and as defined in the

  Series 2000-2 Supplement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MARKET
  STREET FUNDING LLC, as

  Committed Purchaser under and as defined in

  the Series 2000-2 Supplement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
   

  	
  THE BANK OF
  NEW YORK TRUST

  COMPANY, N.A. (successor in interest to

  JPMORGAN CHASE BANK, N.A.), as

  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:Exhibit 10.1

 

DATED 7 MAY 2008

 

VIRGIN MEDIA LIMITED

 

and

 

NEIL BERKETT

 

 

SERVICE AGREEMENT

 

 

Virgin
Media Limited

Bartley Wood Business Park

Hook

Hampshire

RG27 9UP

 

 

CONTENTS

 

	
  Clause

  	
   

  	
   

  	
   

  	
  Page

  
	
  1

  	
   

  	
  DEFINITIONS AND INTERPRETATION

  	
   

  	
  1

  
	
  2

  	
   

  	
  TERM OF EMPLOYMENT

  	
   

  	
  2

  
	
  3

  	
   

  	
  DUTIES

  	
   

  	
  3

  
	
  4

  	
   

  	
  HOURS OF WORK

  	
   

  	
  4

  
	
  5

  	
   

  	
  GRATUITIES

  	
   

  	
  4

  
	
  6

  	
   

  	
  CODES OF CONDUCT

  	
   

  	
  4

  
	
  7

  	
   

  	
  REMUNERATION

  	
   

  	
  5

  
	
  8

  	
   

  	
  PENSION SCHEME

  	
   

  	
  5

  
	
  9

  	
   

  	
  OTHER BENEFITS

  	
   

  	
  6

  
	
  10

  	
   

  	
  SHARE OPTIONS

  	
   

  	
  7

  
	
  11

  	
   

  	
  COMPANY CAR ALLOWANCE

  	
   

  	
  7

  
	
  12

  	
   

  	
  FUEL

  	
   

  	
  7

  
	
  13

  	
   

  	
  EXPENSES

  	
   

  	
  7

  
	
  14

  	
   

  	
  ANNUAL LEAVE

  	
   

  	
  8

  
	
  15

  	
   

  	
  ILLNESS

  	
   

  	
  8

  
	
  16

  	
   

  	
  RESTRICTIONS DURING EMPLOYMENT

  	
   

  	
  9

  
	
  17

  	
   

  	
  INTELLECTUAL PROPERTY

  	
   

  	
  9

  
	
  18

  	
   

  	
  CONFIDENTIALITY

  	
   

  	
  10

  
	
  19

  	
   

  	
  DATA PROTECTION

  	
   

  	
  11

  
	
  20

  	
   

  	
  DEDUCTIONS FROM SALARY

  	
   

  	
  11

  
	
  21

  	
   

  	
  HEALTH AND SAFETY

  	
   

  	
  11

  
	
  22

  	
   

  	
  ENTITLEMENT TO WORK IN THE UK

  	
   

  	
  12

  
	
  23

  	
   

  	
  MONITORING

  	
   

  	
  12

  
	
  24

  	
   

  	
  TERMINATION OF EMPLOYMENT

  	
   

  	
  12

  
	
  25

  	
   

  	
  SUSPENSION AND GARDEN LEAVE

  	
   

  	
  14

  
	
  26

  	
   

  	
  TERMINATION AND RETURN OF COMPANY PROPERTY

  	
   

  	
  15

  
	
  27

  	
   

  	
  RECONSTRUCTION OR AMALGAMATION

  	
   

  	
  15

  
	
  28

  	
   

  	
  RESTRICTIONS AFTER EMPLOYMENT

  	
   

  	
  15

  
	
  29

  	
   

  	
  SEVERABILITY

  	
   

  	
  18

  
	
  30

  	
   

  	
  THIRD PARTIES

  	
   

  	
  19

  
	
  31

  	
   

  	
  NOTICES

  	
   

  	
  19

  
	
  32

  	
   

  	
  STATUTORY INFORMATION

  	
   

  	
  19

  
	
  33

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  19

  

 

i

 

	
  34

  	
   

  	
  CHANGES TO TERMS AND CONDITIONS

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 1

  	
   

  	
   

  
	
   

  	
   

  	
  Statement Of Particulars Pursuant To The Employment Rights Act 1996

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 2

  	
   

  	
   

  
	
   

  	
   

  	
  Certificate of Compliance

  	
   

  	
  22

  

 

ii

 

THIS
DEED is made on 7 May  2008

 

BETWEEN

 

(1)           VIRGIN
MEDIA Limited whose registered office is at 160
Great Portland Street, London W1W 5QA (the “Company”);
and

 

(2)           Neil
Berkett (the “Executive”).

 

recital

 

The Company shall employ the Executive and
the Executive shall serve the Company as the “Chief
Executive Officer” of the Company on the following terms and subject
to the following conditions (the “Agreement”):

 

NOW
THIS DEED WITNESSES:

 

1              DEFINITIONS AND INTERPRETATION

 

1.1           In
this Agreement unless the context otherwise requires the following expressions
shall have the following meanings:

 

“Board”

 

the board of directors from time to time of
any Group Company as the case may be (including any committee of the board duly
appointed by it);

 

“Change in Control”

 

as defined in Schedule 4;

 

“Garden Leave”

 

any period during which
the Company has exercised its rights under clause 25.2;

 

“Group”

 

the Company, its holding company (as
defined in Section 736 of the Companies Act 1985) (including, without
limitation, the Parent) and its group undertakings (as defined in Sections 258
and 259 of the Companies Act 1985) from time to time and “Group
Company” means any one of them;

 

1

 

“Parent”

 

Virgin Media Inc., a
Delaware corporation, and any successor thereto;

 

“Previous Agreement”

 

the Deed dated as of 11
August 2005 between ntl Group Limited and the Executive, as amended; and

 

 “Termination without Cause”

 

as defined in Schedule 4.

 

1.2           Any
reference to a statutory provision shall be deemed to include a reference to
any statutory modification or re-enactment of it.

 

1.3           The
headings in this Agreement are for convenience only and shall not affect its
construction or interpretation.

 

1.4           References
in this Agreement to a person include a body corporate and an incorporated
association of persons and references to a company include any body corporate.

 

1.5           Where
appropriate, references to the Executive include his personal representatives.

 

2              TERM OF EMPLOYMENT; BOARD OF DIRECTORS

 

2.1           Effective
as of 6 March 2008, the Executive was appointed as Chief Executive Officer of
Virgin Media. Effective as of the date hereof, the Previous Agreement is hereby
suspended and shall no longer be in force.

 

2.2           The
employment of the Executive commenced on 26 September 2005 (the “Effective Date”), and (subject to termination as provided
below) shall be for an indefinite period terminable by the Company giving to
the Executive 30 days' notice in writing and by the Executive giving to the
Company 6 months' notice in writing.

 

2.3           Notwithstanding
clause 2.1 above the employment of the Executive shall automatically
terminate on the day when the Executive reaches age 65.

 

2.4           The
Executive represents and warrants that he is not bound by or subject to any
contract, court order, agreement, arrangement or undertaking which in any way
restricts or prohibits him from entering into this Agreement or performing his
duties under it and undertakes to indemnify the Company against any claims,
costs, damages, liabilities or expenses which the Company may incur as a result
of any claim that he is in breach of any such obligations.

 

2.5           So
long as the Executive is employed as Chief Executive Officer, he shall not,
without consent of the Parent, resign his position as a member of the board of
directors of the Parent

 

2

 

3              DUTIES

 

3.1           The
Executive shall during his employment under this Agreement:

 

3.1.1        perform
the duties and exercise the powers which the Company may from time to time
properly assign to him in his capacity as Chief Executive Officer or in
connection with the conduct and management of the business of the Group
(including serving on the board of such Group Company or on any other executive
body or any committee of such a company);

 

3.1.2        do all in
his power to promote, develop and protect the business of the Group and at all
times and in all respects conform to and comply with the proper and reasonable
directions and regulations of the Board;

 

3.1.3        devote
the whole of his working time and attention to the duties assigned to him;

 

3.1.4        faithfully
and diligently serve the Group;

 

3.1.5        act in
the best interests of the Group;

 

3.1.6        comply
with his fiduciary duties;

 

3.1.7        not enter
into any arrangement on behalf of the Group which is outside its normal course
of business or his normal duties or which contains unusual or onerous terms;
and

 

3.1.8        report
the wrongdoing (including acts of misconduct, dishonesty, breaches of contract,
fiduciary duty, company rules or the rules of the relevant regulatory bodies)
whether committed, contemplated or discussed by any other director or member of
staff of any Group Company of which the Executive was aware to the General
Counsel immediately, irrespective of whether this may involve some degree of
self incrimination.

 

3.2           The
Executive shall give to the Board such information regarding the affairs of the
Group as it shall require, and in any event, report regularly and keep the
Board informed.

 

3.3           The
Executive shall carry out his duties and exercise his powers jointly with any
other executive(s) appointed by the Board and / or the Company to act jointly
with him and the Board may at any time require the Executive to cease
performing or exercising the said or any duties or powers.

 

3.4           The
Executive’s normal place of work will be Hook, Hampshire (and the London office
as required).  The Executive agrees that
he may however work in any place within the United Kingdom which the Company
may require and he may be required to travel abroad when required by the Group
for the proper performance of his duties.

 

3

 

4              HOURS OF WORK

 

4.1           The
Executive will comply with the Group's normal hours of work and will also work
such additional hours as are necessary to perform his duties.  He will not receive any further remuneration
for any hours worked in addition to the normal working hours.

 

4.2           The
Executive agrees that the performance of his duties pursuant to this Agreement
may require him to work more than 48 hours per week and consents to opt out of
that part of the Working Time Regulations 1998 which limits the working week to
a maximum of 48 hours averaged over 17 weeks. 
The Executive may withdraw this consent to work more than 48 hours per
week by giving not less than three months' notice to the General Counsel or
Managing Director, Human Resources.

 

5              GRATUITIES

 

5.1           The
Executive shall not directly or indirectly accept any commission, rebate,
discount or gratuity in cash or in kind from any person who has or is having or
is likely to have a business relationship with any Group Company unless the
gratuity is of minimal value and only made on an occasional basis.

 

5.2           Notwithstanding
clause 5.1 above, the Executive shall register any such gratuity on the Gifts
and Hospitality Register, whether or not any such gift or hospitality is
accepted.  Details of the Gifts and
Hospitality Register are available from Human Resources or via the Group Risk
and Human Resources intranet sites.

 

6              CODES OF CONDUCT

 

6.1           Subject
to the terms of clause 16, the Executive shall comply (and procure that his
spouse and minor children shall comply) with all applicable rules and
regulations of the NASDAQ Exchange and the laws of the United States of America
applicable to any Group Company, including without limitation the regulations
of the U.S. Securities and Exchange Commission, and any other codes, rules or
regulations of any other relevant regulatory authority in the UK, USA or any
other relevant jurisdiction from time to time in relation to the holding or
trading of shares, debentures or other securities.

 

6.2           The
Executive shall comply with any Codes of Conduct of the Group (including but
not limited to the Company’s Code of Conduct together with the Code of Ethics
for Principle Executive and Senior Officers of Virgin Media Inc. and Virgin
Media Investment Holdings Limited and the Group's Insider Trading Policy) from
time to time in force and any other relevant regulatory authority.  The Company may require from time to time
questionnaires or other forms to be completed by the Executive in connection
with these Codes of Conduct and other policies. The Executive agrees to
complete these forms in a timely fashion.

 

6.3           The Executive shall sign the Group’s Certificate of Compliance in
relation to any such codes; a copy of the Certificate is appended to this
Agreement under Schedule 2.  In the event that the Company requires
further certifications, the Executive agrees to comply in a timely fashion.

 

4

 

7              REMUNERATION

 

7.1           The
Company shall pay to the Executive a salary at the rate of five hundred and
fifty thousand pounds (£550,000) gross per year, effective 7 April 2008,
subject to deductions for income tax and national insurance contributions.  The Executive shall not be entitled to any
additional remuneration for serving on the board of directors of the Parent of
for serving as an officer of director of any Group Company.

 

7.2           The
Executive’s salary shall accrue from day to day and be payable by equal monthly
instalments in arrears on or about the last working day of each month.

 

7.3           The
Executive’s salary shall be reviewed once in every year.  The undertaking of a salary review does not
confer a contractual right (whether express or implied) to any increase in
salary and the Executive acknowledges that any salary increase is at the discretion
of the Company.

 

7.4           The
Executive is eligible to participate in such bonus scheme as the Group may from
time to time nominate subject to the rules of such scheme as amended from time
to time.  The payment of any bonus
together with any amount payable is at the Group’s absolute discretion and may
from time to time be determined by the board of directors of the Parent or any
committee thereof.  Any bonus payment
will not be part of the contractual remuneration or fixed salary hereunder.  Details of the bonus scheme will be
communicated to the Executive separately.

 

7.5           The
entitlement to any bonus is conditional upon the Executive being employed and
not having given notice on the last calendar day of the month in which the
bonus is paid (currently March). The Executive acknowledges that the
termination of the Executive’s employment whether lawful or unlawful prior to
the last calendar day of the relevant period shall not in any circumstance give
rise to a claim by the Executive for compensation in lieu of such bonus or
compensation to cover the loss of opportunity to earn such bonus.

 

7.6           In
addition to the previous grants of options to purchase common stock of the
Parent, and share of restricted stock of the Parent, the Executive shall be
eligible to receive options to purchase common stock of the Parent as set forth
in Schedule 3, subject to conditions set
forth in the option notices.

 

8              PENSION SCHEME

 

8.1           The Executive will be
eligible to become a member of the Company’s group pension plan (“Pension Plan”), to which the Company shall contribute the
amount of 20% of base salary, which amount may be increased from time to time
in accordance with prevailing Company limits and the rules of the Pension Plan.
The Executive will be contracted into the State Second Pension (S2P) unless the
Executive opts to contract-out or contracting-out is a requirement of the
Executive’s plan.   The Executive’s
contributions will be deducted from monthly salary payments and passed on to
the Pension Plan provider.   At any time
the Company may elect to suspend or terminate operation of the Pension Plan and
replace them with another arrangement(s). An outline description of the terms
of the Pension Plan are set out in a member’s guide.

 

5

 

A copy
of this document is available from Human Resources or may be available on the
Group intranet site.

 

9              OTHER BENEFITS

 

9.1           The
Executive may participate in the following schemes (each referred to below as
an “insurance scheme”):

 

9.1.1        a private
medical expenses insurance scheme providing such cover for the Executive and
his spouse/partner and children as defined in the rules of the scheme as the
Company may from time to time notify to the Executive.  This benefit will be subject to deduction of
tax in line with HM Revenue & Customs requirements;

 

9.1.2        a private
dental insurance scheme providing such cover for the Executive and his
spouse/partner as the Company may from time to time notify to the
Executive.  This benefit will be subject
to the deduction of tax in line with HM Revenue & Customs requirements;

 

9.1.3        a salary
continuance or long-term disability insurance scheme providing such cover for
the Executive as the Company may from time to time notify to him;

 

9.1.4        a life
insurance scheme under which a lump sum benefit shall be payable on the
Executive’s death while this Agreement continues; the benefit of which shall be
paid to such dependants of the Executive or other beneficiary as the trustees
of the scheme select at their discretion, after considering any beneficiaries
identified by the Executive in any expression of the Executive’s wishes
delivered to the trustees before his death. 
The benefit is equal to 4 times the Executive’s annual gross earnings at
his death but annual gross earnings for this purpose shall not exceed the
relevant limits prescribed by the Company from time to time.  The Executive is required to complete all
necessary paperwork to ensure eligibility to full benefit under the scheme.  The Company accepts no liability should full
payment not be made on the basis that the Executive has failed to complete the
requisite paperwork.  The Executive may
be required to undergo examinations by a medical examiner appointed or approved
by the Company in connection with the operation of the scheme; and/or

 

9.1.5        a
personal accident insurance scheme providing such cover for the Executive as
the Company may from time to time notify to him.

 

9.2           Benefits
under any insurance scheme shall be subject to the rules of the scheme(s) and
the terms of any applicable insurance policy and are conditional upon the
Executive complying with and satisfying any applicable requirements of the
insurers.  Copies of these rules and
policies and particulars of the requirements shall be provided to the Executive
on request.  The Company shall not have
any liability to pay any benefit to the Executive under any insurance scheme
unless it receives payment of the benefit from the insurer under the
scheme.  The Company reserves the right
to amend or withdraw any insurance scheme at its discretion from time to time.

 

6

 

9.3           Any
insurance scheme which is provided for the Executive is also subject to the
Company’s right to alter the cover provided or any term of the scheme or to
cease to provide (without replacement) the scheme at any time.

 

9.4           The
provision of any insurance scheme does not in any way prevent the Company from
lawfully terminating this Agreement in accordance with the provisions of this
Agreement even if to do so would deprive the Executive of membership of or
cover under any such scheme.

 

10            SHARE OPTIONS

 

The Executive shall be entitled to
participate in the Group’s stock incentive plans subject to the discretion of
the Compensation Committee of the board of directors of the Parent and the
rules applicable to such scheme as amended or varied from time to time at the
Company’s discretion.  The Executive
shall not be entitled to any compensation for the loss of this benefit or the
loss of opportunity to benefit on termination of this Agreement, whether the
Agreement is lawfully terminated or not. Details of the stock incentive plans
shall be communicated to the Executive separately.

 

11            COMPANY CAR ALLOWANCE

 

The
Company shall provide the Executive with a non-pensionable car allowance of £1,041.66
gross per month payable monthly in arrears (or £12,500 per annum), together
with payment of salary pursuant to clause 7.  Full details are contained in the
Perk Car Policy and Fuel Policy which is available on the Group intranet
site.  The Company reserves the right to
review and amend these policies at any time. 
It is a condition of the Executive’s employment that the Executive
retains a current full driving licence (valid in the UK) and complies with the rules
of the prevailing Perk Car Policy and Fuel Policy.

 

12            FUEL

 

The Executive will be allocated a fuel card
which should be used for the purchase of fuel for all reasonable fuel expenses
(both business and private) for the nominated funded car.  Reasonable private fuel is as considered by
the Company.  The total amount of fuel
charged to the fuel card will be declared to the HM Revenue & Customs on
the Executive’s P11D.  This will be
subject to income tax and national insurance.  The Executive should arrange to declare his
business mileage to the HM Revenue & Customs in order to gain tax relief,
which is a direct arrangement between the Executive and the HM Revenue &
Customs.  The Company recommends that the
Executive consults an independent tax expert for advice.  Further details are contained in the Fuel
Policy which is available on the Group intranet site.

 

13            EXPENSES

 

The Company shall reimburse or procure that
the Executive is reimbursed all expenses reasonably and properly incurred in
accordance with the Travel and Expenses Policy in force from time to time and
available on the Group intranet or from Human Resources.

 

7

 

14            ANNUAL LEAVE

 

14.1         The
Executive is entitled to 28 days holiday with pay every calendar year in
addition to bank and other public holidays. 
The Company’s holiday year runs from 1 January to 31 December.

 

14.2         The
Executive’s holiday entitlement is inclusive of his statutory entitlement which
is twenty (20) days per annum.  When
calculating the Executive’s statutory entitlement bank and public holidays are
taken into account.

 

14.3         The
Company may refuse to allow the Executive to take holiday in circumstances
where it would be inconvenient to the business (including bank or public
holidays).  The Company reserves the
right to refuse holiday (including holiday that has previously been approved)
up to and including the day before the holiday is due to be taken.  In such circumstances the Company will
however attempt to give as much notice as reasonably possible.

 

14.4         If
either party serves notice to terminate the employment, the Company may require
the Executive to take any accrued but unused holiday entitlement during the
notice period (whether or not the Company has exercised its rights under clause
25.2).

 

14.5         In all
other respects unless detailed above, the Executive is subject to the terms of
the Company’s annual leave policy which is available on the Group intranet site
or from Human Resources.

 

15            ILLNESS

 

15.1         If the
Executive is absent from work due to sickness or injury, the Executive may be
eligible for Company sick pay, which is payable at the Company’s absolute
discretion.  Subject to this discretion
and provided the Executive complies with the Sickness Absence Policy
requirements, the Executive will be paid according to the Executive’s normal
basic salary rate.  Further details are
set out in the Company’s Sickness Absence Policy which is available on the
Group intranet site or can be obtained from Human Resources.

 

15.2         If the
Executive is incapable of performing his duties by reason of injury sustained
wholly or partly as a result of negligence, nuisance or breach of any statutory
duty on the part of a third party and the Executive recovers an amount by way
of compensation for loss of earnings from that third party, he  shall immediately pay that part of such amount to the
Company which relates to loss of earnings for the period during which he was
paid by the Company but unable to perform his duties under the Agreement.

 

15.3         The
Company shall be entitled to require the Executive to undergo examinations from
time to time by a medical adviser appointed or approved by the Company and the
Executive authorises the medical adviser and/or will provide such consents as
are necessary to disclose to the Company the results of such examinations.

 

8

 

16            RESTRICTIONS DURING EMPLOYMENT

 

16.1         The
Executive shall not during his employment with the Company and warrants to the
Company that as at the date of this agreement he is not (save as a
representative of the Company or with the prior written approval of the General
Counsel) whether directly or indirectly, paid or unpaid, be engaged or
concerned in the conduct of, be or become an employee, agent, partner,
consultant or director of or assist or have any financial interest in any other
actual or prospective business or profession which is similar to or in competition
with the business carried on by any Group Company or which may reasonably be
thought by the Company to interfere, conflict or compete with the proper
performance of the Executive’s obligations to the Group. The Executive may not
hold any office as a director or chairman of another company without the prior
written consent of the Company.  In any
event, the Executive may not be the chairman of a FTSE 100 company or be a
non-executive director of more than one such company.

 

16.2         The
Executive shall be permitted to hold shares or securities of a company any of
whose shares or securities are quoted or dealt in on any recognised investment
exchange provided that any such holding shall not exceed one per cent of the
issued share capital of the company concerned and is held by way of bona fide
investment only (“Investment”).

 

16.3         The
Executive shall disclose to the Company any matters relating to his spouse (or
anyone living as such), their children, stepchildren, parents or any trust or
firm whose affairs or actions he controls which, if they applied to the
Executive, would contravene clauses 16.1 or 16.2 to the extent that he has
actual knowledge of such matters.

 

17            INTELLECTUAL PROPERTY

 

17.1         “Intellectual
Property Rights” means any patents, trade marks, service
marks, design rights, registered designs, applications for any of the
foregoing, copyright, database rights, know-how and other similar rights or
obligations whether registrable or not in any country.

 

17.2         The
parties agree that any Intellectual Property Rights in any material or
invention that the Executive creates (or participates in creating) in the
course of business (“Company IPR”)
shall vest in the Company.

 

17.3         The
Executive hereby assigns to the Company with full title guarantee and, when appropriate,
by way of future assignment, all his rights in the Company IPR for the full
term thereof throughout the world.  The
Executive must complete whatever documents or take whatever action the Company
may request from time to time, both during and after the termination of the
Executive’s employment, to obtain any applicable registrations and to confirm
that all Company IPR vests in the Group.

 

17.4         The
Executive waives all moral rights (whether arising under Chapter IV of the
Copyright, Designs and Patents Act 1988 or otherwise, to the extent permissible
under law) in works to which clause 17.2 applies.

 

9

 

17.5         The
Executive hereby irrevocably appoints the Company to be his attorney in his
name and on his behalf to execute and do any such instrument or thing and
generally to use his name for the purpose of giving to the Company or its
nominee the full benefit of this clause.

 

18            CONFIDENTIALITY

 

18.1         Without
prejudice to his common law duties, the Executive shall not (save in the proper
course of his duties, as required by law or as authorised by the Company) use
or communicate to any person (and shall use his best endeavours to prevent the
use or communication of) any trade or business secrets or confidential
information of or relating to any Group Company (including but not limited to
details of actual or potential customers, employees, consultants, suppliers,
designs, products, product applications, trade arrangements, terms of business,
customer requirements, operating systems, sales information, marketing
information or strategies, manufacturing processes, software, disputes,
commission or bonus arrangements, pricing and fee arrangements and structures,
business plans, financial information, inventions, research and development
activities, personal or sensitive personal data and anything marked or treated
as confidential) which he creates, develops, receives or obtains while in the
service of any Group Company.  This
restriction shall continue to apply after the termination of the Executive’s
employment howsoever arising without limit in time.

 

18.2         Reference
to confidential information in this clause 18 shall not include information
which is in the public domain at the time of its disclosure or which comes into
the public domain after its disclosure otherwise than by reason of a breach of
this agreement, information which was already demonstrably known to the
receiving party at the date of disclosure and had not been received in
confidence from the Company or information which is required to be disclosed as
a matter of law.  It shall include
information in the public domain for so long as the Executive is in a position
to use such information more readily than others who have not worked for the
Company.

 

18.3         During
his employment the Executive shall not make (other than for the benefit of the
Company) any record (whether on paper, computer memory, disc or otherwise)
relating to any matter within the scope of the business of any Group Company or
their customers and suppliers or concerning its or their dealings or affairs or
(either during his employment or afterwards) use such records (or allow them to
be used) other than for the benefit of the relevant Group Company.  All such records (and any copies of them)
shall belong to the relevant Group Company and shall be handed over to the
General Counsel or Managing Director, Human Resources by the Executive on the
termination of his employment or at any time during his employment at the
request of the Company.

 

18.4         The
Executive shall not during his employment either directly or indirectly publish
any opinion, fact or material on any matter within the scope of the business of
any Group Company (whether confidential or not) which might reasonably be
expected to have a material adverse effect on any Group Company without the
prior written approval of the General Counsel.

 

10

 

18.5         Nothing
in this clause shall prevent the Executive from disclosing information which he
is entitled to disclose under the Public Interest Disclosure Act 1998 provided
that the disclosure is made in the appropriate way to an appropriate person
having regard to the provisions of the Act and he has first fully complied with
the Company’s procedures relating to such disclosures.

 

19            DATA PROTECTION

 

19.1         In
accordance with the Data Protection Act 1998, the Group will hold and process
the information it collects relating to the Executive in the course of the
Executive’s employment for the purposes of employee administration, statistical
and record keeping purposes.  This may
include information relating to the Executive’s physical or mental health.  Some of the Executive’s information may be
processed outside the European Economic Area. 
Such information will be treated confidentially and will only be
available to authorised persons.

 

19.2         When
dealing with data relating to the Company’s business, the Executive is required
to comply with the Company’s Data Protection Policy as in effect from time to time,
which can be obtained from the Group Compliance Officer.  In connection with any litigation,
investigation or government proceeding, the Executive may be required to appear
as a witness, be deposed and/or sign affidavits.  In addition, the Executive’s e-mail accounts
used for any business purpose may be subject to search, in accordance with
applicable law.

 

20            DEDUCTIONS
FROM SALARY

 

The
Company reserves the right at any time during the Executive’s employment, or on
termination of this Agreement to deduct from salary any overpayment made and/or
monies owed to the Company by the Executive. 
This includes but is not limited to any excess holiday, outstanding
loans, advances, relocation costs, parking fines and any related administration
costs for which the Executive and/or the Executive’s permanent partner are
responsible and which are incurred in a vehicle provided by the Company (either
company vehicle or hire car), private fuel reimbursement in accordance with the
prevailing Perk Car Policy and Fuel Policy and the cost of repairing any damage
or loss to property provided by the Company. 
This clause will not apply to any sums or benefits due to the Executive
by virtue of the Executive’s  membership
of the Pension Plan.

 

21            HEALTH
AND SAFETY

 

The
Company is committed to ensuring, so far as reasonably practicable, that the
workplace of every employee is safe, does not pose a risk to health and does
not cause damage to the environment.  The
Executive is therefore required to familiarise himself with the responsibilities
as outlined in the current Company’s Health and Safety Policy, Environment
Policy, Safety Standards booklet (NT PO90) and Safety Information Sheets.  The current version is available on the Group
intranet site or can be obtained from the Health and Safety Group.

 

11

 

22            ENTITLEMENT
TO WORK IN THE UK

 

The
Executive’s employment is conditional upon the Executive being legally entitled
to live and work in the UK.  If the
Executive’s status changes and the Executive is no longer entitled to live or
work in the UK, the Executive’s employment will be terminated without notice or
payment in lieu of notice.

 

23            MONITORING

 

The
Executive acknowledges that the Company may monitor messages sent and received via
email, the Internet and voicemail systems to ensure that the Executive is
complying with the Company’s policy for use by its employees of these systems.

 

24            TERMINATION OF EMPLOYMENT

 

24.1         The
Company may at any time and in its absolute discretion (whether or not any
notice of termination has been given by the Company or the Executive under
clause 2 above) terminate the Executive’s employment with immediate effect and
make a payment in lieu of notice (subject to clause 24.5).  This payment shall be equal to a lump-sum
severance equal to the Executive’s base salary at the time of the notice  times 2 and is payable by the Company as soon
as practicable following the Executive’s execution and delivery of a general
release of claims and any applicable revocation period.  No other payments shall apply in respect of
pension, car allowance, accrued bonus or otherwise.  (For greater certainty, to avoid
double-counting, if a payment is made under this clause 24.1 no payment shall
be made under clause 24.5 and vice versa.)

 

24.2         The
employment of the Executive may be terminated by the Company without notice or
payment in lieu of notice and will not be entitled to the payment under clause
24.1 if the Executive:

 

24.2.1            is
guilty of any serious misconduct (including but not limited to any such act set
out within the Company’s disciplinary policy from time to time or in any code
of conduct) or any other conduct which affects or is likely to affect
prejudicially the interests of the Company or any Group Company to which he is
required to render services under this Agreement;

 

24.2.2            fails
or neglects efficiently and diligently to discharge his duties or commits any
serious or repeated breach or non-observance by the Executive of any of the
provisions contained in this Agreement;

 

24.2.3            has
an interim receiving order made against him, becomes bankrupt or makes any
composition or enters into any deed of arrangement with his creditors;

 

24.2.4            is
convicted or charged with any arrestable criminal offence (other than an offence
under road traffic legislation in the United Kingdom or elsewhere for which a
fine or non-custodial penalty is imposed);

 

24.2.5            is
disqualified from holding office in another company by reason of an order of a
court of competent jurisdiction;

 

12

 

24.2.6            shall
become of unsound mind or become a patient under the Mental Health Act 1983;

 

24.2.7            is
convicted of an offence under the Criminal Justice Act 1993 in relation to
insider dealings or under any other present or future statutory enactment or
regulations relating to insider dealings;

 

24.2.8            is in
violation of the rules and regulations of the U.S. Securities and Exchange
Commission or relevant U.S. securities laws, or the rules and regulations
of the NASDAQ Exchange or any other exchange on which any Group Company’s
securities may be listed;

 

24.2.9            ceases
to be a director of the Company otherwise than at the request of the Company;

 

24.2.10          is no
longer legally entitled to live and/or work in the UK;

 

24.2.11          does
anything (in the course of his duties or otherwise) which (in the reasonable
opinion of the Board) does actually or might reasonably be expected to bring
himself or any Group Company into disrepute;

 

24.2.12          acts in
a way which is in the reasonable opinion of the Board materially adverse to the
interests of any Group Company;

 

24.3         Any
delay by the Company in exercising such right to terminate shall not constitute
a waiver thereof.

 

24.4         [Intentionally
omitted].

 

24.5         In the
event that a Change in Control occurs and the Executive is terminated in a
Termination without Cause during the period commencing on the date of the
Change in Control and ending on the first anniversary thereof then:

 

(i)            the
Company will as soon as practicable following the Executive’s execution and
delivery of a general release of claims and following the expiration of any
applicable revocation period, cause the Executive to be paid a lump-sum
severance payment of cash equal to the Executive’s base salary at the time of
the Change in Control times 2; and

 

(ii)           the
provisions of this clause 24.5 will apply exclusively and no other termination
payments or notice will apply, notwithstanding any other provision hereof and
in the event that any other severance, notice or other payment has been made to
the Executive prior to the payment required under this clause 24.5, such prior
payment amount shall be deducted from the amounts payable under clause (i) to
avoid double-counting.

 

In order for the provisions of this clause 24.5 to
apply, the Executive must provide the Company with 10 days’ notice of the
Executive’s claim that a payment is due hereunder, and such notice shall
describe the facts and circumstances in support of 

 

13

 

such claim in reasonable detail.  The Company shall have 10 days thereafter to
cure such facts and circumstances if possible.

 

24.6         Notwithstanding
anything to the contrary in this Agreement, the Company may assign the
Executive’s employment to Virgin Media Inc. (or its successor) or another Group
Company
reasonably comparable or superior to the Company within the overall corporate
structure and such assignment will not constitute termination of employment
hereunder and the Executive agrees to execute any and all documents necessary
or reasonable to accomplish the foregoing.

 

25            SUSPENSION AND GARDEN LEAVE

 

25.1         The
Company may suspend the Executive on full pay to allow the Company to
investigate any complaint made against the Executive in relation to his
employment with the Company.

 

25.2         Provided
that the Executive continues to enjoy his full contractual benefits and receive
his pay in accordance with this Agreement (provided however consideration for a
bonus under clauses 7.4 and 7.5 is at the discretion of the Compensation
Committee of the board of directors of the Parent), the Company may in its
absolute discretion do all or any of the following during the notice period or
any part of the notice period, after the Executive or the Company has given
notice of termination to the other, without breaching this Agreement or
incurring any liability or giving rise to any claim against it:

 

25.2.1      exclude the
Executive from the premises of the Company and/or the Group;

 

25.2.2      require the
Executive to carry out only specified duties (consistent with his status, role
and experience) or to carry out no duties;

 

25.2.3      announce to
any or all of its employees, suppliers, customers and business partners that
the Executive has been given notice of termination or has resigned (as the case
may be);

 

25.2.4      prohibit
the Executive from communicating in any way with any or all of the suppliers,
customers, business partners, employees, agents or representatives of the Group
until his employment has terminated except to the extent he is authorised to do
so by his manager in writing;

 

25.2.5      require the
Executive to resign his directorship of any Group Company; and/or

 

25.2.6      require the
Executive to comply with any other reasonable conditions imposed by any Group
Company.

 

The Executive will continue to be bound by
all obligations (whether express or implied) owed to the Company under the
terms of the Agreement or as an employee of the Company.

 

14

 

26            TERMINATION AND RETURN OF COMPANY PROPERTY

 

26.1         The Executive
agrees that :

 

26.1.1      The
termination of his employment as Chief Executive Officer of the Company for any
reason and whether or not in accordance with the terms of this Agreement will
automatically constitute his resignation as a director of the Company and of
the Parent and from such offices held by him in any Group Company without claim
for compensation and that he shall at the Company’s request take any action
that the Company deems appropriate to document his resignation from such
offices; and

 

26.1.2      on the
termination of this Agreement he shall immediately deliver to the Company all
credit cards, motor-cars, fuel card, keys, computer media and other property,
in whatever form, of or relating to the business of any  Group Company which may be in his possession
or under his power or control.

 

26.2         If the
Executive fails to comply with clause 26.1.1 above the Company is hereby
irrevocably authorised to appoint some person in his name and on his behalf to
sign and complete any documents or do any thing necessary to give effect to
this clause.

 

26.3         The
Executive shall not without the consent of the Company at any time after the
termination of this Agreement represent himself still to be connected with any
Group Company.

 

27            RECONSTRUCTION OR AMALGAMATION

 

If the employment of the Executive under
this Agreement is terminated by reason of the liquidation of the Company for
the purpose of reconstruction or amalgamation and the Executive is offered
employment with any concern or undertaking resulting from the reconstruction or
amalgamation on terms and conditions not less favourable than the terms of this
Agreement then the Executive shall have no claim against any Group Company in
respect of the termination of his employment under this Agreement.

 

28            RESTRICTIONS AFTER EMPLOYMENT

 

28.1         Definitions

 

In this clause the following words shall
have the following meanings:

 

“Area”

 

the area constituting the market of any
Relevant Group Company for the Services 
and  the Products in the period of
12 months prior to the Termination Date and with which area the Executive was
materially concerned at any time during the said period of 12 months;

 

“Customer”

 

any Person to whom any Relevant Group
Company supplied the Services and the Products for business use during the 12
months preceding the Termination Date and

 

15

 

with whom at any time during such period
the Executive was materially concerned or had personal contact in the course of
his employment;

 

“Key Employee”

 

any person who immediately prior to the
Termination Date was an employee or consultant of any Relevant Group Company
occupying a senior or managerial position who was likely to be:

 

(i)               in
possession of confidential information belonging to any Relevant Group Company;
or

 

(ii)              able
to influence the customer relationships or trade connections of any Relevant
Group Company

 

with whom the Executive worked closely at
any time during the period of 12 months prior to the Termination Date;

 

“Person”

 

 includes any company, firm, organisation or
other entity;

 

“Products”

 

products which are
competitive with those supplied by any Relevant Group Company in the 12 months
prior to the Termination Date and with the supply of which the Executive was
materially concerned at any time during the said 12 month period;

 

“Prospective Customer”

 

any Person with whom any Relevant Group
Company had negotiations or discussions regarding the possible supply of the
Services and the Products for business use during the 12 months immediately
preceding the Termination Date and with whom at any time during such period the
Executive was materially concerned or had personal contact in the course of his
employment;

 

“Relevant Group Company” means;

 

any Group Company (and,
if applicable, its predecessors in business) for which the Executive performed
services or in which he held office at any time during the 12 months prior to
the Termination Date;

 

16

 

“Services”

 

services which are competitive
with those supplied by any Relevant Group Company in the 12 months prior to the
Termination Date and with the supply of which the Executive was materially
concerned at any time during the said 12 month period;

 

“Supplier”

 

any Person who was a supplier
of services or goods to any Relevant Group Company in connection with business
use for the operation of the business (as opposed to the administrative support
of such operation) in the 12 months prior to the Termination Date and with
which the Executive was materially concerned or had personal contact at any
time during the said 12 month period; and

 

“Termination Date”

 

the date on which the employment
terminates.

 

28.2         The
Executive covenants to the Company (for itself and as trustee for each Group
Company) that:

 

28.2.1      Non-competition

 

the Executive shall not for a period of 12
months from the Termination Date in the Area and in competition with the
Relevant Group Company directly or indirectly be engaged, interested or
concerned:

 

(a)           in any
business which provides the Products and the Services; and

 

(b)           with
the supply of the Products and the Services to any Customer or Prospective
Customer.

 

For this purpose, the Executive is
concerned in a business if:

 

(i)            he
carries it on as principal or agent; or

 

(ii)           he is
a partner, director, employee, secondee, consultant or agent in, of or to any
Person who carries on the business; or

 

(iii)          subject
to clause 16 above, he has any direct or indirect financial interest (as
shareholder or otherwise) in any Person who carries on the business.

 

28.2.2      Non-solicitation

 

the Executive shall not for a period of 12
months from the Termination Date and in competition with any Relevant Group
Company directly or indirectly:

 

(a)           canvass
or solicit business from, approach or endeavour to entice away any Customer or
Prospective Customer in respect of the supply of the Products and the Services;

 

17

 

(b)           seek
to do business or deal with any Customer or Prospective Customer in the Area in
respect of the supply of the Products and the Services;

 

(c)           canvass
or solicit business from, make an approach to or endeavour to entice away any
Supplier of the Relevant Group Company;

 

(d)           accept
employment with or act as consultant for any Customer or Prospective Customer.

 

28.2.3      Non-poaching

 

the Executive shall not for a period of 12
months after the Termination Date solicit the employment or engagement of any Key
Employee in a business which is in competition with any Relevant Group Company
(whether or not such person would breach their contract of employment or
engagement by reason of their leaving the service of the business in which they
work).

 

28.3         The restrictions
in this clause are considered by the parties to be reasonable and the validity
of each sub-clause shall not be affected if any of the others is invalid.  If any of the restrictions are void but would
be valid if some part of the restriction were deleted, the restriction in
question shall apply with such modification as may be necessary to make it
valid.

 

28.4         The
Executive acknowledges that the provisions of this clause are no more extensive
than is reasonable to protect the Relevant Group Company.

 

28.5         If the
Executive is suspended from work under the provisions of clause 25.1 or sent on
Garden Leave under clause 25.2, the Company may, at its sole discretion, agree
that the period of time during which the non-competition restrictions contained
inclause 28.2.1are enforceable, starts to run from the date of the
suspension or date when the Executive was sent on Garden Leave, and not from
the Termination Date.

 

28.6         The
Executive acknowledges that each and every restriction contained within this
clause is intended by the parties to apply after the Termination Date whether
termination is lawful or otherwise.  The
restrictions, which are acknowledged to be ancillary in nature, will apply even
where the termination results from a breach of a provision within this
Agreement.

 

28.7         The
Executive will (at the request and cost of the Company) enter into a direct
agreement with any Group Company under which he will accept restrictions
corresponding to the restrictions contained in this clause (or such as will be
appropriate in the circumstances) in relation to such Group Company.

 

29            SEVERABILITY

 

If any of the provisions of this Agreement
become invalid or unenforceable for any reason by virtue of applicable law the
remaining provisions shall continue in full force and effect and the Company
and the Executive hereby undertake to use all reasonable endeavours to replace
any legally invalid or unenforceable provision

 

18

 

with a provision which will promise to the
parties (as far as practicable) the same commercial results as were intended or
contemplated by the original provision.

 

30            THIRD PARTIES

 

30.1         any Group Company shall have the right to
enforce the provisions of this Agreement pursuant to the Contracts (Rights of
Third Parties) Act 1999.

 

30.2         save as provided in clause 30.1 above, a
person who is not a party to this Agreement shall have no right under the
Contracts (Rights of Third Parties) Act 1999 to enforce any provision of this
Agreement.

 

31            NOTICES

 

31.1         Any
notice required or permitted to be given under this Agreement shall be given in
writing delivered personally or sent by first class post pre-paid recorded
delivery (air mail if overseas) or overnight courier or by facsimile to the
party due to receive such notice, in the case of the Company, to: Virgin Media
Limited, Bartley Wood Business Park, Hook, Hampshire, RG27 9UP and marked for
the attention of the Managing Director, Human Resources with a copy to: Virgin
Media Inc., General Counsel, at the same address and, in the case of the
Executive, such address as he may have notified to the Company in accordance
with this clause or such address as may be included in the Group’s payroll
system.

 

31.2         Any
notice delivered personally or by overnight courier shall be deemed to be
received when delivered to the address provided in this Agreement and any
notice sent by pre-paid recorded delivery post shall be deemed (in the absence
of evidence of earlier receipt) to be received 2 days after posting and in proving
the time of despatch it shall be sufficient to show that the envelope
containing such notice was properly addressed, stamped and posted.  A notice sent by facsimile shall be deemed to
have been received on receipt by the sender of confirmation in the transmission
report that the facsimile had been sent.

 

32            STATUTORY
INFORMATION

 

Schedule 1 to this Agreement sets out information required to be given to the
Executive by the Employment Rights Act 1996.

 

33            MISCELLANEOUS

 

33.1         This
Agreement is governed by and shall be construed in accordance with the laws of
England and Wales.

 

33.2         The
parties to this Agreement submit to the exclusive jurisdiction of the English
courts.

 

33.3         This
Agreement contains the entire understanding between the parties and supersedes
all previous agreements and arrangements (if any) relating to the employment of
the Executive by the Company (which shall be deemed to have been terminated by
mutual consent).

 

19

 

33.4         This
Agreement may be executed by counterparts, which together shall constitute one
agreement.  Either party may enter into
this Agreement, by executing a counterpart and this Agreement shall not take
effect until it has been executed by both parties.  Delivery of an executed counterpart of a
signature page by facsimile shall take effect as delivery of an executed
counterpart of this Agreement provided that the relevant party shall give the
other the original of such page as soon as reasonably practicable
thereafter.

 

34            CHANGES TO TERMS AND CONDITIONS

 

The Company reserves the right
to amend the Executive’s terms set out within this Agreement and policies from
time to time.  The Executive will be
given not less than four weeks notice of any such change.  The Executive will be deemed to have accepted
these changes should the Company have received no objection before the end of
the four week period.

 

20

 

SCHEDULE 1

 

Statement of Particulars Pursuant to the
Employment Rights Act 1996

 

1              The
Executive’s period of continuous employment commenced on 26 September 2005.  A period of employment with a previous
employer does not count as part of the Executive’s continuous employment with
the Company.

 

2              The
Executive will be contracted into the Second State Pension unless the Executive
opts to contract out.

 

3              The
Company’s policies and procedures on disciplinary and grievance matters are
available on the Group intranet site and/or from HR (insofar as they are not
varied by this Agreement).  The policies
constitute Company guidelines and do not form any part of the Service
Agreement.  Any grievance which the
Executive wishes to exercise should be raised in writing with the General
Counsel unless the grievance involves the General Counsel in which case the
grievance should be raised in writing in the first instance with the Managing
Director, Human Resources.  Any
disciplinary action taken by the Company will be dealt with by the General
Counsel or such other person as may be directed by the Managing Director, Human
Resources.  The Company reserves the
right to substitute persons at a senior level within the Company to conduct any
aspect of the disciplinary or grievance procedure should it be appropriate.  If the Executive is dissatisfied with any
disciplinary decision or any decision to dismiss him (he) can within five (5) working
days of that decision appeal to the Company (unless the Executive is notified
in any separate communication of the person to whom he may appeal) whose
decision shall be final and binding.

 

4              The
Executive may be required to work overseas for periods when reasonably
required.  In such circumstances, the
terms of the International Assignment Policy will apply which is available from
the company upon request.

 

5              The
Company is not a party to any collective agreement which affects the Executive’s
employment.

 

21

 

SCHEDULE 2

 

Certificate of Compliance

 

I have
read and understand the Code of Conduct and Code of Ethics and have complied
and will continue to comply with it (together with any other Codes or policies
that may apply to my role from time to time). 
I have not acted in any way contrary to the best interests of the
Company.  Any exceptions to the Code of
Conduct or Code of Ethics (and any other policies) and disclosures required by
the Code and such policies are set forth below:

 

I will
promptly report the details of any future non-compliance with the
above-mentioned Codes (and any associated policies) to my immediate manager so
that its extent and significance can be considered.

 

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Please
  print name

  

 

22

 

SCHEDULE 3

 

Stock Option Awards

 

·      The
Executive will be granted 500,000 options (“Tranche 1 Options”) at an exercise
price equal to the mid-market value of Virgin Media Inc.’s
stock on May 7, 2008 (“Grant Date”), subject to a five-year vesting. The
Tranche 1 Options will vest 20% on each anniversary of the Grant Date, the
first vesting being one year after the Grant Date. 100% of the unvested Tranche
1 Options will accelerate upon an Acceleration Event.

 

·      The
Executive will be granted 300,000 options (“Tranche 2 Options”) at an exercise price
equal to the mid-market value of Virgin Media Inc.’s stock on the Grant Date,
subject to the following performance condition for vesting:  during the Executive’s employment the closing
price per share of the Company’s common stock equals or exceeds $20.42 (“Threshold
Amount”) for ten consecutive trading days. 
If the closing
stock price per share does not achieve the Threshold Amount for ten consecutive
trading days within five years of the Grant Date, the options will lapse. 
 Upon the
occurrence of an Acceleration Event before the Tranche 2 Options vest: if the
stock price per share paid in the transaction is less than the Threshold
Amount, the options will lapse; and if the stock price per share paid in the
transaction is equal to or above the Threshold Amount, the options will
accelerate  The Threshold Amount will be
adjusted to take into account any stock splits or similar events.

 

·      The Tranche
1 Options and Tranche 2 Options will be governed by the Virgin Media Inc.’s 2006 Stock Incentive Plan, the individual stock option notices,
and the Virgin Media’s Insider Trading Policy as amended from time to time.

 

23

 

SCHEDULE 4

 

Certain
Definitions

 

1.             A “Change in Control” shall be deemed to occur if the event
set forth in any one of the following paragraphs shall have occurred:

 

(i)            any Person is or becomes the
Beneficial Owner, directly or indirectly, of securities of the Company (not
including in the securities beneficially owned by such Person any securities
acquired directly from the Company) representing 30% or more of the combined
voting power of the Company’s then outstanding securities, excluding any Person
who becomes such a Beneficial Owner in connection with a transaction described
in clause (a) of Paragraph (iii) below; or

 

(ii)           the following individuals cease
for any reason to constitute a majority of the number of directors then
serving: individuals who, on the date hereof, constitute the Board of Directors
of the Company (“Board”) and any new director (other than a director whose
initial assumption of office is in connection with an actual or threatened
election contest, including, without limitation, a consent solicitation,
relating to the election of directors of the Company) whose appointment or
election by the Board or nomination for election by the Company’s stockholders
was approved or recommended by a vote of at least a majority of the directors
then still in office who either were directors on the date hereof or whose
appointment, election or nomination for election was previously so approved or
recommended; or

 

(iii)          there is consummated a merger or
consolidation of the Company or any direct or indirect subsidiary of the
Company with any other corporation, other than (a) a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior to such merger or consolidation continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or any parent thereof) at least 50% of the
combined voting power of the securities of the Company or such surviving entity
or any parent thereof outstanding immediately after such merger or
consolidation, or (b) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no Person is
or becomes the Beneficial Owner, directory or indirectly, of securities of the
Company (not including in the securities beneficially owned by such Person any
securities acquired directly from the Company) representing 30% or more of the
combined voting power of the Company’s then outstanding securities; or

 

(iv)          the stockholders of the Company
approve a plan of complete liquidation or dissolution of the Company or there
is consummated an agreement for the sale or disposition by the Company of all
or substantially all of the Company’s assets, other than a sale or disposition
by the Company of all substantially all of the Company’s assets to an entity,
at least 50% of the combined voting power of the voting securities of which are
owned by the stockholders of the Company immediately prior to such sale.

 

24

 

Notwithstanding
the foregoing, a “Change in Control” shall not be deemed to have occurred by
virtue of the consummation of any transaction or series of integrated
transactions immediately following which the record holders of the common stock
of the Company immediately prior to such transaction or series of transactions
continue to have substantially the same proportionate ownership in an entity
which owns all or substantially all of the assets of the Company immediately
following such transaction or series of transactions.

 

2.             “Termination Without Cause” means a termination of the
Executive’s employment during the employment term other than for Cause.  Notwithstanding anything to the contrary in
this Agreement, the Company may assign the Executive’s employment to Virgin
Media Inc. (or its successor) or another Group Company reasonably comparable or
superior to the Company within the overall corporate structure and such
assignment will not constitute termination of employment hereunder and the
Executive agrees to execute any and all documents necessary or reasonable to
accomplish the foregoing.

 

For purposes
of this Schedule 4:

 

“Affiliate” shall have the meaning set forth in Rule 12b-2 under Section 12
of the Securities Exchange Act of 1934.

 

“Cause” means all of the events described in clause 24.2 of the Agreement.

 

“Person” shall have the meaning given in Section 3(a)(9) of the
Securities Exchange Act of 1934, as modified and used in Sections 13(d) and
14(d) thereof, except that such terms shall not include (i) the
Company or any of its Affiliates, (ii) a trustee or other fiduciary
holding securities under an employee benefit plan of the Company or any of its
subsidiaries, (iii) an underwriter temporarily holding securities pursuant
to an offering of such securities, or (iv) a corporation owned, directly
or indirectly, by stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company.

 

“Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the
Securities Exchange Act of 1934, except that a Person shall not be deemed to be
the Beneficial Owner of any securities which are properly filed on a Form 13-G.

 

25

 

IN WITNESS whereof this Agreement has been
executed as a deed and delivered on the date first above written.

 

	
  Executed
  as a Deed by Virgin Media Limited

  acting by a director and company secretary:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Robert Gale

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Gillian James

  	
  Secretary

  

 

 

	
  Signed
  as a Deed by Neil Berkett in the presence of:

  	
  /s/
  Neil A. Berkett

  
	
   

  	
   

  
	
   

  	
   

  
	
  Witness
  signature:

  	
  /s/Caroline
  Withers

  
	
   

  	
   

  
	
  Name:

  	
  Caroline
  Withers

  
	
   

  	
   

  
	
  Address:

  	
  c/o
  160 Great Portland Street, London, W1W 5QA

  
	
   

  	
   

  
	
  Occupation:

  	
  Solicitor

  

 

26

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