Common use of Existing Equity Clause in Contracts

Existing Equity. The options granted to the Executive under the Intelsat, Ltd. 2001 Share Option Plan (the "2001 PLAN OPTIONS") and the Intelsat, Ltd. 2004 Share Incentive Plan (the "2004 PLAN OPTIONS"), and the restricted shares granted to the Executive (the "RS"), all of which are listed on Schedule 1 hereto and continue to be outstanding as of the Closing, shall be treated as of the Closing as set forth herein, notwithstanding the provisions of the Transaction Agreement: (A) Each of the Executive's 2001 Plan Options shall be cancelled in exchange for a cash payment, as soon as practicable following the Closing, equal to the aggregate Spread (as defined in Section 2.1(c)(i)(D) below) of such options, less applicable withholding taxes. (B) The Executive's 2004 Plan Options shall be cancelled in exchange for a cash payment, as soon as practicable following the Closing, equal to the aggregate Spread of the options so cancelled, less applicable withholding taxes. (C) Each of the Executive's RS shall be cancelled in exchange for a cash payment, as soon as practicable following the Closing, equal to $18.75 per share subject to the RS. (D) The "SPREAD" of a 2001 Plan Option or a 2004 Plan Option shall mean the excess, if any, of (i) $18.75 over (ii) the per-share exercise price thereof.