Description of Change in Employer National Insurance Treatment for Virgin Media Stock Option Awards

Contract Categories: Business Finance Stock Agreements
Summary

Virgin Media Inc. has changed its policy regarding national insurance contributions for employees exercising stock options under its 2006 and 2004 Stock Incentive Plans. Previously, employees were required to pay both their own and the employer's portion of UK national insurance when exercising options. As of October 26, 2009, the company will no longer require employees to pay the employer's portion for future and outstanding unexercised options. This change was approved by the Compensation Committee and applies to options not yet exercised.

EX-10.16 2 a2195116zex-10_16.htm EXHIBIT 10.16

Exhibit 10.16

 

Description of Change in Treatment of Employer National Insurance

with Respect to Stock Option Awards

 

The Company’s option awards under the Virgin Media Inc. 2006 Stock Incentive Plan and the Amended & Restated Virgin Media 2004 Stock Incentive Plan are subject to United Kingdom employer and employee national insurance contributions (as well as employee income tax) at the time that vested options are exercised.  UK national insurance is comparable to social security in the United States.

 

Historically, prior to the adoption of the Company’s 2009 — 2011 Long-term Incentive Plan in June 2009, the Company’s stock option notices have required the employee, at the time of exercise, to pay the employer’s portion of the national insurance contribution as well as the employee’s portion.  At its meeting on October 26, 2009, the Compensation Committee determined as a general matter that this requirement should not be included in future option notices and that the Company would waive the requirement that the employee pay the employer’s national insurance contribution in respect of outstanding options that have not yet been exercised.