Exhibit 10.2
COMCAST
CORPORATION
2002 DEFERRED STOCK OPTION
PLAN
ARTICLE 1 - CONTINUATION AND
COVERAGE OF PLAN
1.1. Freeze of Plan
.
(a) COMCAST CORPORATION, a
Pennsylvania corporation, hereby amends, restates and freezes the
Comcast Corporation 2002 Deferred Stock Option Plan (the
“Plan”), effective October 7, 2008. The Plan was
initially adopted effective September 16, 1997 and was amended
and restated effective June 21, 1999, December 19,
2000, November 29, 2001, April 29,
2002, November 18, 2002, February 26,
2003, July 30, 2003, January 30, 2004 and
February 16, 2005.
(b) In order to preserve the
favorable tax treatment available to deferrals that were made under
the Plan before January 1, 2005 in light of the American Jobs
Creation Act of 2004, IRS Notice 2005-1 , and the
regulations issued by the Department of the Treasury thereunder
(the “ AJCA ”), deferrals under the Plan of
amounts that were not earned and vested as of December 31,
2004 shall not be permitted. Accordingly, notwithstanding anything
in the Plan to the contrary, on or after January 1, 2005, no
Participant may make an Initial Election. Initial Elections made by
Participants before January 1, 2005 shall be honored only to
the extent that under Q-A 16(b) of IRS Notice 2005-1 , the
date of deferral is treated as having occurred before
January 1, 2005.
(c) Except as otherwise provided in
Paragraph 2.31, amounts earned and vested prior to January 1,
2005 are and will remain subject to the terms and conditions of the
Plan.
1.2. Plan Unfunded and Limited to
Outside Directors and Select Group of Management or Highly
Compensated Employees . The Plan is unfunded and is maintained
primarily for the purpose of providing outside directors and a
select group of management or highly compensated employees the
opportunity to defer compensation otherwise payable to such outside
directors and management or highly compensated employees. The Plan
provides an opportunity for outside directors and management or
highly compensated employees to defer the receipt of Shares upon
the exercise of Options and to convert the right to receive Shares
to the right to receive the cash value thereof as of the date of
such conversion, plus interest thereon from the date of such
conversion, in accordance with the terms of the Plan.
ARTICLE 2 -
DEFINITIONS
2.1. “ Account ”
means unfunded bookkeeping accounts established pursuant to
Section 5.1 and maintained by the Administrator in the names
of the respective Participants (a) to which Deferred Stock
Units, dividend equivalents and earnings on dividend equivalents
shall be credited with respect to the portion of the Account
allocated to the Company Stock Fund and (b) to which an amount
equal to the Fair Market Value of Deferred Stock Units with respect
to which a Diversification Election has been made and interest
thereon from the date of such election shall be credited with
respect to the portion of the Account allocated to the Income Fund,
and from which all amounts distributed pursuant to the Plan shall
be debited.
2.2. “ Active
Participant ” means:
(a) Each Participant who is in
active service as an Outside Director;
(b) Each Participant who is actively
employed by a Participating Company as an Eligible Employee;
and
(c) A Permitted Transferee of an
individual described in Section 2.2(a) or Section 2.2(b),
if applicable.
2.3. “ Administrator
” means the Committee.
2.4. “ Affiliate
” means, with respect to any Person, any other Person that,
directly or indirectly, is in control of, is controlled by, or is
under common control with, such Person. For purposes of this
definition, the term “control,” including its
correlative terms “controlled by” and “under
common control with,” mean, with respect to any Person, the
possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such Person,
whether through the ownership of voting securities, by contract or
otherwise.
2.5. “ Annual Rate of
Pay ” means, as of any date, an employee’s
annualized base pay rate. An employee’s Annual Rate of Pay
shall not include sales commissions or other similar payments or
awards.
2.6. “ Applicable Interest
Rate ” means:
(a) Except as
otherwise provided in Section 2.6(b), the Applicable Interest
Rate means 8% per annum, compounded annually as of the last
day of the calendar year, or such other interest rate established
by the Administrator from time to time. The effective date of any
reduction in the Applicable Interest Rate shall not precede the
latest of (i) November 29, 2003, (ii) the 30
th
day following the
date of the Administrator’s action to establish a reduced
rate or (ii) the lapse of 24 full calendar months from the
date of the most recent adjustment of the Applicable Interest Rate
by the Administrator.
(b) Effective for the period
extending from a Participant’s employment termination date to
the date the Participant’s Account is distributed in full,
the Administrator, in its sole and absolute discretion, may
designate the term “Applicable Interest Rate” for such
Participant’s Account to mean the lesser of (i) the rate
in effect under Section 2.6(a) or (ii) the Prime Rate
plus one percent, compounded annually as of the last day of the
calendar year. Notwithstanding the foregoing, the Administrator may
delegate its authority to determine the Applicable Interest Rate
under this Section 2.6(b) to an officer of the Company or
committee of two or more officers of the Company.
2.7. “ AT&T Broadband
Transaction ” means the acquisition of AT&T Broadband
Corp. (now known as Comcast Cable Communications Holdings, Inc.) by
the Company.
2.8. “ Beneficiary
” means such person or persons or legal entity or entities,
including, but not limited to, an organization exempt from federal
income tax under section 501(c)(3) of the Code, designated by a
Participant or Beneficiary to receive benefits pursuant to the
terms of the
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Plan after such Participant’s or
Beneficiary’s death. If no Beneficiary is designated by the
Participant or Beneficiary or if no Beneficiary survives the
Participant or Beneficiary (as the case may be), the
Participant’s Beneficiary shall be the Participant’s
Surviving Spouse if the Participant has a Surviving Spouse and
otherwise the Participant’s estate and the Beneficiary of a
Beneficiary shall be the Beneficiary’s Surviving Spouse if
the Beneficiary has a Surviving Spouse and otherwise the
Beneficiary’s estate.
2.9. “ Board ”
means the Board of Directors of the Company.
2.10. “ Change of
Control ” means any transaction or series of transactions
as a result of which any Person who was a Third Party immediately
before such transaction or series of transactions owns
then-outstanding securities of the Company such that such Person
has the ability to direct the management of the Company, as
determined by the Board in its discretion. The Board may also
determine that a Change of Control shall occur upon the completion
of one or more proposed transactions. The Board’s
determination shall be final and binding.
2.11. “ Code ”
means the Internal Revenue Code of 1986, as amended.
2.12. “ Comcast Option Plan
or Plans ” means the Comcast Corporation 1987 Stock
Option Plan, or the Comcast Corporation 2002 Stock Option Plan, the
AT&T Broadband Corp. Adjustment Plan, or any other incentive or
non-qualified stock option plan subsequently adopted by the Company
or a Related Corporation.
2.13. “ Comcast Plan
” means any restricted stock, stock bonus, stock option or
other compensation plan, program or arrangement established or
maintained by the Company or an Affiliate, including, but not
limited to this Plan, the Comcast Corporation 2002 Restricted Stock
Plan and the Comcast Option Plans.
2.14. “ Committee
” means the Compensation Committee of the Board of Directors
of the Company.
2.15. “ Common Stock
” means Company’s Class A Common Stock, par value
$.01 per share, including a fractional share.
2.16. “ Company ”
means Comcast Corporation, a Pennsylvania corporation, as successor
to Comcast Corporation, including any successor thereto by merger,
consolidation, acquisition of all or substantially all the assets
thereof, or otherwise.
2.17. “ Company Stock
” means Common Stock or such other securities as may be
issued by the Company pursuant to adjustments as provided in
Article 11.
2.18. “ Company Stock
Fund ” means a hypothetical investment fund pursuant to
which Deferred Stock Units are credited with respect to an Option
subject to an Initial Election, and thereafter until the date of
distribution or the effective date of a Diversification Election,
to the extent a Diversification Election applies to such Deferred
Stock Units, as applicable. The portion of a Participant’s
Account deemed invested in the Company Stock Fund shall be treated
as if such portion of the Account were invested in hypothetical
shares of Common Stock or Special Common Stock otherwise
deliverable as Option Shares on the exercise of an Option,
and
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all dividends and other distributions paid with
respect to Common Stock or Special Common Stock were credited to
the Income Fund, held uninvested in cash and credited with interest
at the Applicable Interest Rate as of the next succeeding
December 31 (to the extent the Account continues to be deemed
credited in the form of Deferred Stock Units through such
December 31).
2.19. “ Date of Grant
” means the date as of which an Option is granted.
2.20. “ Death Tax Clearance
Date ” means the date upon which a Deceased
Participant’s or a deceased Beneficiary’s Personal
Representative certifies to the Administrator that (a) such
Deceased Participant’s or deceased Beneficiary’s Death
Taxes have been finally determined, (b) all of such Deceased
Participant’s or deceased Beneficiary’s Death Taxes
apportioned against the Deceased Participant’s or deceased
Beneficiary’s Account have been paid in full and (c) all
potential liability for Death Taxes with respect to the Deceased
Participant’s or deceased Beneficiary’s Account has
been satisfied.
2.21. “ Death Taxes
” means any and all estate, inheritance, generation-skipping
transfer, and other death taxes as well as any interest and
penalties thereon imposed by any governmental entity (a
“taxing authority”) as a result of the death of the
Participant or the Participant’s Beneficiary.
2.22. “ Deceased
Participant ” means:
(a) A Participant whose employment,
or, in the case of a Participant who was an Outside Director, a
Participant whose service as an Outside Director, is terminated by
death;
(b) A Participant who dies following
termination of active employment or active service; or
(c) A Permitted Transferee of an
individual described in Section 2.22(a) or 2.22(b), if
applicable.
2.23. “ Deferred Stock
Units ” mean the number of hypothetical Shares determined
as the excess of (a) the number of Option Shares over
(b) the number of Other Available Shares having a Fair Market
Value as of the date of exercise of an Option equal to the exercise
price for such Option Shares (hereinafter referred to in this
Section 2.23 as the “Payment Shares”), as to which
an Outside Director, Former Outside Director, Eligible Employee,
Former Eligible Employee or Successor-in-Interest provides to the
Company evidence of ownership of sufficient Payment Shares to pay
the exercise price for such Option Shares; provided,
however, that if the Option is for Common Stock, the Deferred
Stock Units shall be credited to the Participant’s Account as
Deferred Common Stock Units, and if the Option is for Special
Common Stock, the Deferred Stock Units shall be credited to the
Participant’s Account as Deferred Special Common Stock Units.
Provision of a notarized statement under oath to the Company by the
Outside Director, Former Outside Director, Eligible Employee,
Former Eligible Employee or Successor-in-Interest attesting to the
number of Payment Shares owned by the Outside Director, Former
Outside Director, Eligible Employee, Former Eligible Employee or
Successor-in-Interest and held by a securities broker for the
Outside Director, Former Outside Director, Eligible Employee,
Former Eligible Employee or Successor-in-Interest in “street
name” or provision of the
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certificate numbers to the Company by the
Outside Director, Former Outside Director, Eligible Employee,
Former Eligible Employee or Successor-in-Interest of the Payment
Share stock certificates actually held by the Outside Director,
Former Outside Director, Eligible Employee, Former Eligible
Employee or Successor-in-Interest shall constitute acceptable
evidence of ownership.
2.24. “ Disabled
Participant ” means
(a) A Participant whose employment
or, in the case of a Participant who is an Outside Director, a
Participant whose service as an Outside Director, is terminated by
reason of disability;
(b) A Participant who becomes
disabled (as determined by the Committee) following termination of
active service;
(c) The duly-appointed legal
guardian of an individual described in Section 2.24(a) or
2.24(b) acting on behalf of such individual; or
(d) A Permitted Transferee of an
individual described in Section 2.24(a) or 2.24(b), if
applicable.
2.25. “ Diversification
Election ” means a Participant’s election to have a
portion of the Participant’s Account credited in the form of
Deferred Stock Units under the Company Stock Fund deemed liquidated
and credited thereafter under the Income Fund, as provided in
Section 5.2(b).
2.26. “ Eligible
Employee ” means:
(a) Each employee of a Participating
Company whose Annual Rate of Pay is $200,000 or more as of both
(i) the date on which an Initial Election is filed with the
Administrator and (ii) the first day of the calendar year in
which such Initial Election is filed
(b) Each employee of a Participating
Company who has an Annual Rate of Pay of $125,000 as of each of
(i) June 30, 2002; (ii) the date on which an Initial
Election is filed with the Administrator and (iii) the first
day of each calendar year beginning after December 31,
2002.
(c) Each New Key
Employee.
(d) Each other employee of a
Participating Company who is designated by the Committee, in its
sole and absolute discretion, as an Eligible Employee.
2.27. “ Fair Market
Value .” (a) If Shares are listed on a stock exchange,
Fair Market Value shall be determined based on the last reported
sale price of a Share on the principal exchange on which Shares are
listed on the date of determination, or if such date is not a
trading day, the next trading date.
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(b) If Shares are not so listed, but
trades of Shares are reported on the Nasdaq National Market, Fair
Market Value shall be determined based on the last quoted sale
price of a Share on the Nasdaq National Market on the date of
determination, or if such date is not a trading day, the next
trading date.
(c) If Shares are not so listed nor
trades of Shares so reported, Fair Market Value shall be determined
by the Committee in good faith.
2.28. “ Former Eligible
Employee ” means an individual who has ceased to be
actively employed by a Participating Company for any reason but
who, immediately preceding his termination of employment, was an
Eligible Employee.
2.29. “ Former Outside
Director ” means an individual who has ceased to be a
member of the Board, but who, immediately preceding his cessation
of service as a member of the Board was an Outside
Director.
2.30. “ Immediate
Family ” means an Outside Director’s, Former
Outside Director’s, Eligible Employee’s or Former
Eligible Employee’s spouse and lineal descendants, any trust
all beneficiaries of which are any of such persons and any other
entity all members or owners of which are any of such
persons.
2.31. “ Income Fund
” means a hypothetical investment fund pursuant to which the
Fair Market Value of Deferred Stock Units subject to a
Diversification Election is credited as of the effective date of
such Diversification Election and as to which interest is credited
thereafter until the date of distribution at the Applicable
Interest Rate. In addition, the Income Fund shall also be deemed to
hold dividend equivalents and earnings on dividend equivalents
credited to a Participant’s Account as described in
Section 2.1 and Section 2.18. Except as otherwise
provided in Section 3.8, and notwithstanding any other
provision of the Plan to the contrary, for purposes of determining
the time and form of payment of amounts credited to the Income
Fund, the rules of the Comcast Corporation 2005 Deferred
Compensation Plan shall apply on the same basis as if such amounts
were credited to a participant’s account under such Deferred
Compensation Plan.
2.32. “ Initial
Election ” means a written election on a form provided by
the Administrator, filed with the Administrator in accordance with
Article 3, pursuant to which an Outside Director, Former Outside
Director, Eligible Employee, Former Eligible Employee,
Successor-in-Interest or Permitted Transferee who:
(a) Elects, within the time or times
specified in Article 3, to defer the receipt of Shares pursuant to
the exercise of all or part of an Option; and
(b) Designates the time that such
Shares and any dividend equivalents shall be
distributed.
2.33. “ New Key
Employee ” means each employee of a Participating
Company:
(a) Who becomes an employee of a
Participating Company and has an Annual Rate of Pay of $200,000 or
more as of his employment commencement date; and
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(b) Who has an Annual Rate of Pay
that is increased to $200,000 or more and who, immediately
preceding such increase, was not an Eligible Employee.
2.34. “ Normal
Retirement ” means:
(a) For a Participant who is an
employee of a Participating Company immediately preceding his
termination of employment, a termination of employment that is
treated by the Participating Company as a retirement under its
employment policies and practices as in effect from time to time;
and
(b) For a Participant who is an
Outside Director immediately preceding his termination of service,
his normal retirement from the Board.
2.35. “ Option ”
means a non-qualified stock option to purchase Shares granted
pursuant to an Comcast Option Plan; provided that each Option with
a different Date of Grant shall be considered a separate
Option.
2.36. “ Option Shares
” mean the Shares that are subject to the portion of an
Option as to which an Initial Election or Subsequent Election is in
effect as adjusted to reflect a Share Withholding
Election.
2.37. “ Other Available
Shares ” means, as of any date, the sum of:
(a) the total number of Shares owned
by a Participant that were not acquired by such Participant
pursuant to a Comcast Plan or otherwise in connection with the
performance of services to the Company or an Affiliate;
plus
(b) the excess, if any,
of:
(i) the total number of Shares owned
by a Participant other than the Shares described in
Section 2.37(a); over
(ii) the excess, if any
of:
(A) The sum of:
(1) The number of such Shares owned
by such Participant for less than six months; plus
(2) The number of such Shares owned
by such Participant that has, within the preceding six months, been
the subject of a withholding certification under any Comcast Plan;
plus
(3) The number of such Shares owned
by such Participant that has, within the preceding six months, been
received in exchange for Shares surrendered as payment, in full or
in part, or as to which ownership was attested to as payment, in
full or in part, of the exercise price for an option to purchase
any securities of the Company or an Affiliate of
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the Company, under any Comcast Plan, but only to
the extent of the number of Shares surrendered or attested to;
plus
(4) The number of such Shares owned
by such Participant as to which evidence of ownership has, within
the preceding six months, been provided to the Company in
connection with the crediting of Deferred Stock Units to such
Participant’s Account.
For purposes of this
Section 2.37, a Share that is subject to a deferral election
pursuant to this Plan or another Comcast Plan shall not be treated
as owned by a Person until all conditions to the delivery of such
Share have lapsed. The number of Other Available Shares shall be
determined separately for Common Stock and Special Common Stock.
For purposes of determining the number of Other Available Shares,
the term “Shares” shall also include the securities
held by a Participant immediately before the consummation of the
AT&T Broadband Transaction that became Common Stock and Special
Common Stock as a result of the AT&T Broadband
Transaction.
2.38. “ Outside
Director ” means a member of the Board, who is not an
employee of a Participating Company.
2.39. “ Participant
” means each Outside Director, Former Outside Director,
Eligible Employee, Former Eligible Employee, Successor-in-Interest
or Permitted Transferee who is the grantee or transferee of an
Option that has made an Initial Election or Subsequent Election and
that has an undistributed amount credited to an Account under the
Plan.
2.40. “ Participating
Company ” means Comcast Corporation and each Related
Corporation with respect to Comcast Corporation. Effective
January 1, 2003, “Participating Company” means the
Company and each Related Corporation.
2.41. “ Permitted
Transferee ” means a member of the Immediate Family of an
Outside Director, Former Outside Director, Eligible Employee or
Former Eligible Employee to whom the right to exercise an Option
has been transferred pursuant to an Comcast Option Plan.
2.42. “ Person ”
means an individual, a corporation, a partnership, an association,
a trust or any other entity or organization.
2.43. “ Personal
Representative ” means the executor, the administrator,
or the personal representative of a deceased individual’s
estate.
2.44. “ Plan ”
means the Comcast Corporation 2002 Deferred Stock Option Plan, as
set forth herein, and as amended from time to time.
2.45. “ Prime Rate
” means the annual rate of interest identified by PNC Bank as
its prime rate as of the first day of each calendar
year.
2.46. “ Related
Corporation ” means a subsidiary of Comcast Corporation
or, effective January 1, 2003, a subsidiary of the Company, as
defined in section 424(f) of the Code.
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2.47. “ Retired
Participant ” means a Participant who has terminated
employment pursuant to a Normal Retirement.
2.48. “ Share ”
or “ Shares .”
(a) Except as provided in this
Section 2.48, a share or shares Common Stock or Special Common
Stock.
(b) The term “Share” or
“Shares” also means such other securities issued by the
Sponsor as may be the subject of an adjustment under
Section 11, or for purposes of Section 2.37 and
Section 10, as may have been the subject of a similar
adjustment under similar provisions of a Comcast Plan as now in
effect or as may have been in effect before the AT&T Broadband
Transaction.
2.49. “ Share Withholding
Election ” means a written election on a form provided by
the Administrator, filed with the Administrator in accordance with
the rules applicable to the filing of Initial Elections under
Article 3, pursuant to which an Eligible Employee, Former Eligible
Employee, Successor-in-Interest or Permitted Transferee elects to
have the number of Shares deferred pursuant to the exercise of all
or part of an Option and credited under the Plan as Deferred Stock
Units adjusted so that Deferred Stock Units that would, but for a
Share Withholding Election, be credited to an Account under the
Plan, shall be deemed distributed pursuant to the Plan to satisfy
applicable withholding tax liabilities, as described in
Section 10.2.
2.50. “ Special Common
Stock ” means the Company’s Class A Special
Common Stock, par value $.01 per share, including a fractional
share.
2.51. “ Special
Diversification Election ” means a Diversification
Election by a Participant other than an Outside Director to have
more than 40 percent of the Deferred Stock Units credited to such
Participant’s Account in the Company Stock Fund that are
attributable to any Option deemed liquidated and credited
thereafter under the Income Fund, as provided in
Section 5.2(b), if (and to the extent that) it is approved by
the Administrator in accordance with Section 5.2(b). An
Outside Director may not make a Special Diversification
Election.
2.52 “ Subsequent
Election ” means a written election on a form provided by
the Administrator, filed with the Administrator in accordance with
Article 3, pursuant to which a Participant or Beneficiary may elect
to defer (or, in limited cases, accelera