Exhibit 10.1
SECOND AMENDED &
RESTATED
EMPLOYMENT AGREEMENT
THIS SECOND AMENDED AND RESTATED
EMPLOYMENT AGREEMENT (the “ Agreement ”) is made
as of August 4, 2008 (the “ Effective Date
”), by and between Virgin Media Inc., a Delaware corporation
(the “ Company ”), and Bryan H. Hall (the
“ Executive ”).
WHEREAS, on 3 March 2006, NTL
Incorporated and Telewest Global, Inc. effected a merger
transaction (the “ Merger ”), structured as a
reverse acquisition, whereby Telewest Global, Inc. acquired
NTL Incorporated and both companies changed their names so that
Telewest Global, Inc. became “NTL Incorporated”
and former NTL Incorporated became “NTL Holdings Inc.”
(“ Old NTL ”) and thereafter the Company was
renamed “Virgin Media Inc.”;
WHEREAS, as a result of the Merger,
Old NTL became a wholly owned subsidiary of the Company and shares
of Old NTL were converted into shares of the Company, so that one
share of common stock of Old NTL became two and a half shares of
the common stock of the Company after giving effect to the
Merger;
WHEREAS, the Executive has been
employed as the Secretary and General Counsel of Old NTL since
June 15, 2004 and as Secretary and General Counsel of the
Company since the closing of the Merger on 3 March 2006,
pursuant to the terms of an Employment Agreement dated as of 28
May 2004, as extended by the Amended & Restated
Employment Agreement dated as of December 8, 2006 (such
extension, the “ Extension ” and the Employment
Agreement as so extended, the “ Original Agreement
”);
WHEREAS, the Company and the
Executive each desire to amend and restate the Original Agreement
in its entirety to extend the Employment Term, to provide for
certain stock option grants to the Executive and to provide for his
continued employment with the Company;
WHEREAS the parties intend that
(i) the Executive will reside in the United Kingdom and
perform duties on behalf of the consolidated enterprise as its
General Counsel while present in the United Kingdom, particularly
with regard to the U.K. business, and (ii) he will travel to
the United States where he will perform duties on behalf of the
Company as its General Counsel, in each case upon the terms and
conditions of this Agreement; and
WHEREAS, the Executive wishes to
accept such employment and to render services to the Company on the
terms and conditions set forth herein.
NOW, THEREFORE, in consideration of
the mutual covenants contained herein and for other good and
valuable consideration, the receipt and sufficiency of which are
acknowledged, the parties agree as follows:
1.
Amendment . The Original Agreement is hereby amended
and restated in its entirety by this Agreement. The parties
previously agreed to assign the terms of the Original Agreement, as
amended and restated in the Extension, to the Company from Old NTL
and accordingly the term “Company” refers to Virgin
Media Inc. (f/k/a NTL Incorporated), the ultimate parent
entity. In connection with such assignment, the parties
previously agreed that (i) all rights of Old NTL under the
Original Agreement are now rights of the Company under this
Agreement and shall be enforceable against the Executive solely by
the Company, (ii) all rights of the Executive under the
Original Agreement shall be enforceable by the Executive solely
against the Company, (iii) all obligations of Old NTL under
the Original Agreement are now obligations of the Company under
this Agreement and shall be enforceable by the Executive solely
against the Company and (iv) all obligations of the Executive
under the Original Agreement shall be enforceable against the
Executive solely by the Company. The Executive previously
released and waived Old NTL from any and all claims he may have had
against it as
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of the date of the Extension
and acknowledged that, from and after the date thereof, such claims
shall be asserted solely against the Company. This Agreement shall
be effective as of the Effective Date.
2.
Employment
Term .
(a)
The term of the
Executive’s employment pursuant to this Agreement (the
“ Employment Term ”) shall commence as of the
Effective Date and shall end on December 31, 2009, unless the
Employment Term terminates earlier pursuant to
Section 7 of this Agreement. The Employment Term
may be extended by mutual agreement of the Company and the
Executive.
(b)
Title;
Duties . During the Employment
Term, the Executive shall serve the Company as its General Counsel
and, in such capacity, shall perform such duties, services and
responsibilities as are commensurate with such position. In
his capacity as General Counsel, the Executive shall report to the
Chief Executive Officer of the Company and shall perform such
duties, services and responsibilities as are reasonably requested
from time to time by the Chief Executive Officer and the Board of
Directors of the Company (the “ Board ”) and
normal and customary for this position. During the Employment Term,
the Executive shall be based in the United Kingdom but shall
undertake such overseas travel as is necessary for the proper
performance of his duties hereunder.
During the Employment Term, the
Executive shall devote substantially all of his time to the
performance of the Executive’s duties hereunder and will not,
without the prior written approval of the Chief Executive Officer
of the Company, engage in any other business activity which
interferes in any material respect with the performance of the
Executive’s duties hereunder or which is in violation of
written policies established from time to time by
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the Company. Nothing contained in this
Agreement shall preclude the Executive from devoting a reasonable
amount of time and attention during the Employment Term to
(A) continuing legal education, including, without limitation,
any and all continuing legal education efforts as may be required
to remain in good standing with the bar of the State of New York
(which may include attendance at seminars and other similar events)
and (B) (i) serving, with the prior approval of the
Board, as a non-executive director, trustee or member of a
committee of any for-profit organizations; (ii) engaging in
charitable and community activities (including pro bono legal
services); and (iii) managing personal and family investments
and affairs, so long as any activities of the Executive which are
within the scope of clauses (A) and (B) (i),
(ii) and (iii) of this Section 2(b) do
not interfere in any material respect with the performance of the
Executive’s duties hereunder.
3.
Monetary
Remuneration .
(a)
Base
Salary . During the Employment
Term, in consideration of the performance by the Executive of the
Executive’s obligations hereunder to the Company and its
parents, subsidiaries, associated and affiliated companies and
joint ventures (collectively, the “ Company Affiliated
Group ”) in any capacity (including any services as an
officer, director, employee, member of any Board committee or
management committee or otherwise), the Company shall cause to be
paid to the Executive an annual salary of (x) £300,000 in
respect of the period prior to September 12, 2006;
(y) £320,000 in respect of the period on and following
September 12, 2006; and (z) £375,000 in respect of
the period on and following July 1, 2008, subject to any
increase through “pay review” or otherwise for calendar
year 2009 as may be offered by the Company in its sole discretion
(the “ Base Salary ”). The Base Salary
shall be payable in accordance with normal payroll practices in
effect from time to time for senior
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management generally;
provided , that the Executive may elect to receive all or
any portion of the Base Salary or other cash payments in U.S.
dollars, subject to the Company’s Exchange Rate Policy in
effect from time to time. The Executive shall receive no additional
compensation for services that he provides to the Company
Affiliated Group other than as set forth in this Agreement or as
may otherwise be agreed in writing.
(b)
Annual Cash
Bonus . During each fiscal
year of the Company that the Employment Term is in effect, the
Executive shall be eligible to earn a cash bonus, paid in U.S.
dollars, in the sole discretion of the Board of (at target) 75%,
but subject to a maximum of 150%, of Base Salary (prorated for any
partial fiscal year) (the “ Annual Cash Bonus
”); provided , that, for purposes of determining the
percentage of Base Salary as to which the Annual Cash Bonus is
measured, the Base Salary shall be determined as if the Executive
had elected to be paid entirely in U.S. dollars; and
provided , further , that the Executive may elect
prior to the payment of the Annual Cash Bonus to convert all or any
portion of the Annual Cash Bonus into U.K. pounds sterling at the
exchange rate offered under the Company’s Exchange Rate
Policy as in effect from time to time. In addition, the
Company shall cause the Executive to participate in the Virgin
Media Long Term Incentive Plan (“ LTIP ”). The
Executive shall be entitled to a Bonus for the calendar year of
2009 if any Bonus would otherwise have been paid to him had he been
employed in the 2010 calendar year, subject to prorating and to
being paid at the same time that the Annual Cash Bonus is made to
participants generally. In addition, if the Executive remains
employed through December 31, 2009, he shall be entitled to
any LTIP payment with respect to the 2007-2009 LTIP and 2008-2010
LTIP but not the 2009-2011 LTIP in the case of the 2008-2010 LTIP,
subject to prorating and to being paid at the same time that the
LTIP payment is made to participants generally.
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(c)
Expatriate
Package . During the Employment
Term and for any period during which the Executive is required by
the Company to live in the United Kingdom, the Executive and his
family shall have the right to receive the benefits of the
Company’s standard expatriate benefits package (as applied to
comparable United States expatriate employees of the Company), but
in any event such benefits will be consistent with the terms set
forth in Appendix A . Tax equalization shall be
consistent with existing Company Tax Equalization Policy, attached
as Appendix B and incorporated herein by
reference.
4.
Equity-Based
Compensation .
During the
Employment Term, the Executive shall be eligible to receive options
to purchase common stock of the Company in addition to being
entitled to the options described in Appendix C at such
exercise prices, schedules as to exercisability and other terms and
conditions as determined in the sole discretion of the Board or its
Compensation Committee under the Virgin Media Inc. 2006 Stock
Incentive Plan or any successor plan.
5.
Benefits
.
(a)
General.
During the
Employment Term, the Executive shall be entitled to participate in
all of the employee benefit plans, programs, policies and
arrangements (including fringe benefit and executive perquisite
programs and policies) made available by the Company Affiliate
Group to, or for the benefit of, its executive officers in
accordance with the terms thereof as they may be in effect from
time to time, in so far as such benefits are capable of being
provided in the United Kingdom.
(b)
Reimbursement
of Expenses . During the Employment
Term, the Company shall cause the Executive to be reimbursed for
all reasonable business expenses incurred by the Executive in
carrying out the Executive’s duties, services and
responsibilities
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under this Agreement, and
reasonable expenses incurred in connection with maintaining
admission to practice in the State of New York, so long as the
Executive complies with the general procedures of the Company
Affiliated Group for submission of expense reports, receipts or
similar documentation of such expenses applicable to senior
management generally.
6.
Vacations
. For each
whole and partial calendar year during the Employment Term, the
Executive shall be entitled in addition to public and statutory
holidays to 28 days of paid vacation (prorated for any partial
calendar year), to be credited and taken in accordance with the
Company’s policy as in effect from time to time for its
similarly situated executives. In the calendar year 2009, the
Executive shall also be entitled to a vacation for the month of
February.
7.
Termination;
Severance .
(a)
Termination of
Employment . The Company may
terminate the employment of the Executive in a Termination Without
Cause upon 30 days’ written notice to the Executive.
The Company may (at its discretion) at any time following the
giving of such notice (but not exceeding the length of the notice
given) cease to provide work for the Executive in which event
during such notice period the other provisions of this Agreement
shall continue to have full force and effect but the Executive
shall not be entitled to access to any premises of the Company or
any member of the Company Affiliated Group. In addition, the
employment of the Executive shall automatically terminate as of the
date on which the Executive dies or is Disabled. For the
purposes of this Agreement, the Executive shall be “
Disabled ” as of any date if, as of such date, the
Executive has been unable, due to physical or mental incapacity, to
substantially perform the Executive’s duties, services and
responsibilities hereunder either for a period of at least 180
consecutive days or for at least 270 days in any consecutive
365-day period, whichever
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may be applicable.
Upon termination of the Executive’s employment during the
Employment Term because the Executive dies or is Disabled, the
Company shall cause the Executive (or the Executive’s estate,
if applicable) to be provided with death or disability benefits (as
applicable) pursuant to the plans, programs, policies and
arrangements of the Company Affiliated Group as are then in effect
with respect to executive officers. In addition, upon any
termination of the Executive’s employment during the
Employment Term, the Company shall cause the Executive to be paid
any earned but unpaid portion of the Base Salary and other than in
connection with a termination pursuant to Section 7(d)
, to be paid, in accordance with the Company’s bonus policy
then in effect, the Annual Cash Bonus (if any) on or about
March 2009 with respect to the 2008 fiscal year or on or about
March 2010 with respect to the 2009 fiscal year, as
applicable. The Company’s bonus policy may affect the timing
of any payment, the proration factor and may provide for non
payment of the bonus. Immediately following termination of the
Executive’s employment for any reason, the Employment Term
shall terminate.
(b)
Termination
Without Cause; Constructive Termination Without Cause
. Upon
(x) a Termination Without Cause or (y) a Constructive
Termination Without Cause, the Company shall, as soon as
practicable following the Executive’s execution and delivery
to the Company of the general release of claims set forth in
Section 7(g) 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 product of the Base
Salary times 2, except that (I) prior to January 1,
2009, for any termination under clause (x) or (y) or
(II) in connection with a Constructive Termination Without
Cause occurring in connection with a Change in Control (as defined
under clause (F) of the definition of Constructive Termination
Without Cause) after January 1, 2009, it shall be Base Salary
times 3.
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(c)
Termination upon Non-Renewal of the Employment Term .
Unless the parties hereto agree otherwise, the Employment Term and
the Executive’s employment with the Company shall end on
December 31, 2009. In connection with such termination
of employment, the Company shall, as soon as practicable following
the Executive’s execution and delivery to the Company of the
general release set forth in Section 7(g) 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 Base Salary then in effect. In addition, in connection
with a termination of employment pursuant to this
Section 7(c) , the Company shall cause the Executive to
be paid the Annual Cash Bonus for the Company’s 2009 fiscal
year, the 2007-2009 LTIP and the 2008-2010 LTIP (pro-rated),
determined based on actual satisfaction of any applicable
performance goals during such fiscal year, with such bonus to be
paid when paid to the other participants in the scheme and without
application of any mandatory deferral provisions or continued
employment requirements.
(d)
Upon a termination of the Executive’s employment during the
Employment Term by the Company for Cause, or upon termination by
the Executive with 30 days’ written notice given to the
Company (other than a Constructive Termination Without Cause), the
Executive shall be entitled to earned but unpaid Base Salary and
benefits through the date of termination, and the Executive shall
not be entitled to any other payments or benefits.
(e)
Upon any termination of the Executive’s employment during the
Employment Term other than by the Company for Cause, the Company
shall pay for the continued medical benefits for the Executive and
his family under (and in accordance with the terms of) COBRA for a
period of twelve (12) months following such termination; for
the
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avoidance of doubt this
provision applies upon a termination pursuant to
Section 7(c) hereof. The Executive shall
pay for the remaining COBRA entitlement period.
For purposes of this
Agreement:
(i)
A “ Constructive Termination Without Cause ”
means a termination of the Executive’s employment during the
Employment Term by the Executive following the occurrence of any of
the following events without the Executive’s prior consent:
(A) failure by the Company to continue the Executive as the
General Counsel (excluding a promotion); (B) any material
diminution in the Executive’s working conditions or
authority, responsibilities or authorities; (C) assignment to
the Executive of duties that are inconsistent, in a material
respect, with the scope of duties and responsibilities associated
with his position as set forth herein; (D) any materially
adverse change in the reporting structure applicable to the
Executive (but not including a change in the person filling the
position to which the Executive reports); (E) the failure of
the Company to maintain commercially reasonable directors’
and officers’ liability insurance; or (F) 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. For purposes of this Agreement, a “ Change
in Control ” is defined in Appendix D , and
incorporated by reference. The Executive shall give the
Company 10 days’ notice of the Executive’s intention to
terminate the Executive’s employment and claim that a
Constructive Termination Without Cause (as defined in (A), (B),
(C), (D), (E) or (F) above) has occurred, and such notice
shall describe the facts and circumstances in support of such claim
in reasonable detail. The Company shall have 10 days
thereafter to cure such facts and circumstances if
possible.
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(ii)
A “ Termination Without Cause ” means a
termination of the Executive’s employment during the
Employment Term by the Company other than for Cause or by reason of
the Executive being Disabled.
(iii)
“ Cause ” means (x) the Executive is
convicted of, or pleads guilty or nolo contendere to, a
felony or to any crime involving fraud, embezzlement or breach of
trust; (y) the willful or continued failure of the Executive
to perform the Executive’s duties hereunder (other than as a
result of physical or mental illness); or (z) in carrying out
the Executive’s duties hereunder, the Executive has engaged
in conduct that constitutes gross neglect or willful misconduct,
unless the Executive believed in good faith that such conduct was
in, or not opposed to, the best interests of the Company and each
member of the Company Affiliated Group. The Company shall
give the Executive 10 days’ notice of the Company’s
intention to terminate the Executive’s employment and claim
that facts and circumstances constituting Cause exist, and such
notice shall describe the facts and circumstances in support of
such claim. The Executive shall have 10 days thereafter to
cure such facts and circumstances if possible. If the Board
reasonably concludes that the Executive has not cured such facts or
circumstances within such time, Cause shall not be deemed to have
been established unless and until the Executive has received a
hearing before the Board (if promptly requested by the Executive)
and a majority of the Board within 10 days of the date of such
hearing (if so requested) reasonably confirms the existence of
Cause and the termination of the Executive therefor.
(f)
Effect of Section 409A of the Internal Revenue Code
. If the Executive is a “specified employee” on
the date of termination of the Executive’s employment for
purposes of Section 409A of the Internal Revenue Code of 1986,
as amended, and the regulations there under, notwithstanding any
provision of the Agreement relating to the
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timing of payments to the
Executive hereunder, if Section 409A would cause the
imposition of the additional tax under Section 409A if paid as
provided in Section 7 of the Agreement, then such
payment shall be paid upon the day following the six-month
anniversary of the date of termination. For purposes of this
Agreement, “ Specified Employee ” shall mean a
“specified employee” within the meaning of Code section
409A(a)(2)(B)(i), as determined by the Company’s Compensation
Committee.
(g)
Release; Full Satisfaction . Notwithstanding any other
provision of this Agreement, no severance pay shall become payable
under this Agreement unless and until the Executive and the Company
execute the general release of claims in form and manner reasonably
satisfactory to the Company and substantially similar to
Appendix E , and such release has become irrevocable (it
being the intention of the parties that the Executive provide the
Company with a complete release of any and all claims as a
condition to the receipt of the severance pay under this
Agreement); provided , that the Executive shall not be
required to release any indemnification rights, rights to accrued
benefits under the Company’s employee benefit plans, or
rights to future payments or benefits under this Agreement.
The payment of severance pay to be provided to the Executive
pursuant to this Section upon termination of the
Executive’s employment shall constitute the exclusive payment
in the nature of severance or termination pay or salary
continuation which shall be due to the Executive upon a termination
of employment and shall be in lieu of any other such payments under
any plan, program, policy or other arrangement which has heretofore
been or shall hereafter be established by any member of the Company
Affiliated Group and shall be in respect of any such claims or
payments due or arising from any benefits, rights or entitlements
in any jurisdiction.
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(h)
Resignation
. Upon
termination of the Executive’s employment for any reason, the
Executive shall be deemed to have resigned from all positions with
any member of the Company Affiliated Group, as
applicable.
(i)
Cooperation
Following Termination . Following termination
of the Executive’s employment for any reason, the Executive
agrees to reasonably cooperate with the Company upon the reasonable
request of the Board and to be reasonably available to the Company
with respect to matters arising out of the Executive’s
services to any
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