Document:

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                                                                    EXHIBIT 10.9

                                                              As Amended through
                                                                January 10, 2001

                              AOL TIME WARNER INC.
               1999 INTERNATIONAL EMPLOYEES RESTRICTED STOCK PLAN

     1. CERTAIN DEFINITIONS. The following terms (whether used in the singular
or plural) shall have the meanings indicated when used in the Plan.

          1.1  "AOL Time Warner" shall mean AOL Time Warner Inc., a Delaware
                corporation, and any successor thereto.

          1.2  "Approved Transaction" means any transaction in which the Board
               (or, if approval of the Board is not required as a matter of law,
               the stockholders of the Company) shall approve (i) any
               consolidation or merger of the Company in which the Company is
               not the continuing or surviving corporation or pursuant to which
               shares of Common Stock would be converted into cash, securities
               or other property, other than a merger of the Company in which
               the holders of Common Stock immediately prior to the merger have
               the same proportionate ownership of common stock of the surviving
               corporation immediately after the merger, or (ii) any sale,
               lease, exchange, or other transfer (in one transaction or a
               series of related transactions) of all, or substantially all, of
               the assets of the Company, or (iii) the adoption of any plan or
               proposal for the liquidation or dissolution of the Company.

          1.3  "Board" means the Board of Directors of the Company.

          1.4  "Board Change" means, during any period of two consecutive years,
               individuals who at the beginning of such period constituted the
               entire Board ceased for any reason to constitute a majority
               thereof unless the election, or the nomination for election by
               the Company's stockholders, of each new director was approved by
               a vote of at least two-thirds of the directors then still in
               office who were directors at the beginning of the period.

          1.5  "Code" means the Internal Revenue Code of 1986, as amended from
               time to time, or any successor statute or statutes thereto.
               Reference to any specific Code section shall include any
               successor section.

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          1.6  "Committee" means the Committee of the Board appointed pursuant
               to Section 2.3 hereof.

          1.7  "Common Stock" means the Common Stock, par value $.01 per share,
               of the Company.

          1.8  "Company" means (i) with respect to periods prior to January 11,
               2001, Time Warner Inc., a Delaware corporation, and (ii) with
               respect to periods on and after January 11, 2001, AOL Time
               Warner.

          1.9  "Control Purchase" means any transaction in which any person (as
               such term is defined in Sections 13(d)(3) and 14(d)(2) of the
               Securities Exchange Act of 1934, as amended (the "Exchange
               Act")), corporation or other entity (other than the Company or
               any employee benefit plan sponsored by the Company or any of its
               Subsidiaries) (i) shall purchase any Common Stock (or securities
               convertible into Common Stock) for cash, securities or any other
               consideration pursuant to a tender offer or exchange offer,
               without the prior consent of the Board, or (ii) shall become the
               "beneficial owner" (as such term is defined in Rule 13d-3 under
               the Exchange Act), directly or indirectly, of securities of the
               Company representing 20% or more of the combined voting power of
               the then outstanding securities of the Company ordinarily (and
               apart from the rights accruing under special circumstances)
               having the right to vote in the election of directors (calculated
               as provided in Rule 13d-3(d) in the case of rights to acquire
               securities of the Company).

          1.10 "Dividend Equivalents" means, with respect to Restricted Shares
               to be issued at the end of the Restriction Period, to the extent
               specified in the Restricted Shares Agreement only, an amount
               equal to the regular cash dividends and all other distributions
               (or the economic equivalent thereof) which are payable to
               stockholders of record during the Restriction Period on a like
               number of shares of Common Stock (other than dividends or
               distributions which result in an adjustment in the character or
               amount of Restricted Shares pursuant to Section 10 hereof).

          1.11 "Holder" means an individual to whom Restricted Shares have been
               awarded pursuant to Section 2 hereof.

          1.12 "Plan" means this 1999 International Employees Restricted Stock
               Plan of the

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               Company.

          1.13 "Restricted Shares" means shares of Common Stock awarded to a
               Holder pursuant to Section 2 hereof.

          1.14 "Restricted Shares Agreement" means the agreement specified in
               Section 12 hereof.

          1.15 "Restriction Period" means a period of time beginning on the date
               of each award of Restricted Shares and ending on the Vesting Date
               with respect to each such award.

          1.16 "Retained Distributions" means distributions which are retained
               by the Company pursuant to Section 5.3 hereof.

          1.17 "Subsidiary" of a person means any present or future subsidiary
               of such person as such term is defined in section 424 of the Code
               and any present or future trade or business, whether or not
               incorporated, controlled by or under common control with such
               person. An entity shall be deemed a Subsidiary of a person only
               for such periods as the requisite ownership or control
               relationship is maintained.

          1.18 "Vesting Date" with respect to any Restricted Shares awarded
               hereunder means the date when such Restricted Shares shall become
               unconditionally vested as designated by the Board at the time
               Restricted Shares are awarded pursuant to Section 2 hereof.

     2. ADMINISTRATION AND AWARD OF RESTRICTED SHARES.

          2.1  POWERS. The Plan shall be administered by the Board. Subject to
the express provisions of the Plan, the Board shall have plenary authority, in
its discretion, to award Restricted Shares under the Plan and to determine the
terms and conditions (which need not be identical) upon which Restricted Shares
shall be awarded, including, without limitation, (a) the individuals to whom,
and the time or times at which, Restricted Shares shall be awarded hereunder,
(b) the number of Restricted Shares covered by each award, (c) the Vesting
Date(s) applicable to each award and the conditions, if any, subject to which
Restricted Shares shall become vested on the Vesting Date and (d) the form,
terms and provisions of the Restricted Shares Agreement evidencing each award of
Restricted Shares hereunder.

          2.2  INTERPRETATION. Subject to the express provisions of the Plan,
the Board shall

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have plenary authority to interpret the Plan, to prescribe, amend and rescind
the rules and regulations relating to it and to make all other determinations
deemed necessary or advisable for the administration of the Plan. The
determinations of the Board on the matters referred to in this Section 2 shall
be conclusive.

          2.3  DELEGATION TO COMMITTEE. Notwithstanding anything to the contrary
contained herein, the Board may at any time, or from time to time, appoint a
Committee and delegate to such Committee the authority of the Board to
administer the Plan, including to the extent provided by the Board, the power to
further delegate such authority. Upon such appointment and delegation, the
Committee shall have all the powers, privileges and duties of the Board in the
administration of the Plan to the extent provided in such delegation, except the
power to appoint members of the Committee and to terminate, modify or amend the
Plan. The Board may from time to time appoint members of any such Committee in
substitution for or in addition to members previously appointed, may fill
vacancies in the Committee and may discharge the Committee. Any such Committee
shall have as chairman one of its members as determined by the Board or by the
Committee members and shall hold its meetings at such times and places as it
shall deem advisable. A majority of its members shall constitute a quorum and
all determinations shall be made by a majority of its members. Any determination
reduced to writing and signed by a majority of the members shall be fully as
effective as if it had been made by a majority vote at a meeting duly called and
held.

     3. SHARES SUBJECT TO THE PLAN. Subject to the provisions of Section 10
hereof, the maximum aggregate number of Restricted Shares which may be awarded
under the Plan in any calendar year, commencing with calendar year 1999, shall
be an amount determined by the Board not in excess of .04% of the shares of
Common Stock outstanding on December 31st of the preceding calendar year;
PROVIDED, HOWEVER, that any Restricted Shares awarded under the Plan in any
calendar year which are forfeited by the terms of the Plan or any Restricted
Shares Agreement in the same calendar year shall be deemed not to have been
awarded for the purpose of this Section 3 and shall again become available for
awards during such calendar year. Any Restricted Shares available for grant in
any calendar year which are not granted in that calendar year shall not be
available for grant in any subsequent calendar year and any Restricted Shares
awarded in any calendar year which are forfeited by the terms of the Plan or any
Restricted Shares Agreement in any subsequent calendar year shall not again be
available for awards. No fractional shares of Common Stock shall be awarded or
issued under the Plan.

     The Restricted Shares may be in whole or in part, as the Board shall from
time to time determine, authorized but unissued shares of Common Stock or shares
of Common Stock previously issued and outstanding and reacquired by the Company,
or both.

     4. ELIGIBILITY AND CRITERIA FOR AWARDS. Awards may be made only to

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employees, including officers and directors who are also employees, of the
Company or any of its Subsidiaries and prospective employees of the Company or
any of its Subsidiaries whose place of employment at the time of the award of
Restricted Shares is, or is intended to be, in whole or in significant part,
outside the United States. The vesting of Restricted Shares granted to a
prospective employee shall be conditioned upon such person becoming an employee
of the Company or any of its Subsidiaries. For purposes of the Plan, the term
"prospective employee" shall mean any person who holds an outstanding offer of
employment on specific terms from the Company or any of its Subsidiaries. Awards
may be made to employees who hold or have held awards under this Plan or any
similar or other awards under any other plan of the Company or its Subsidiaries.

     5. RESTRICTIONS APPLICABLE TO RESTRICTED SHARES; CERTIFICATES REPRESENTING
RESTRICTED SHARES.

          5.1  VESTING DATE AND ISSUANCE. The Board shall determine whether
shares of Common Stock covered by awards of Restricted Shares will be issued at
the beginning or the end of the Restriction Period, shall determine whether
Dividend Equivalents will be paid in the event shares of Common Stock are to be
issued at the end of the Restriction Period, and, if so, the time(s) at which
such Dividend Equivalents will be paid, shall designate a Vesting Date(s) with
respect to each award of Restricted Shares and may prescribe other restrictions,
terms and conditions applicable to the vesting of such Restricted Shares in
addition to those provided in the Plan. The Board shall determine the price, if
any, to be paid by the Holder for the Restricted Shares and the terms of
payment. All determinations made by the Board pursuant to this Section 5.1 shall
be specified in the Restricted Shares Agreement.

          5.2  RESTRICTIONS. Restricted Shares, when issued, will be registered
in the name of the Holder to whom such Restricted Shares shall have been
awarded. During the Restriction Period, any certificates representing the
Restricted Shares and any securities constituting Retained Distributions shall
bear a restrictive legend to the effect that ownership of the Restricted Shares
(and such Retained Distributions), and the enjoyment of all rights appurtenant
thereto, are subject to the restrictions, terms and conditions provided in the
Plan and the applicable Restricted Shares Agreement. Any such certificates shall
be deposited by such Holder with the Company, together with stock powers or
other instruments of assignment, each endorsed in blank, which will permit
transfer to the Company of all or any portion of the Restricted Shares and any
securities constituting Retained Distributions that shall be forfeited or that
shall not become vested in accordance with the Plan and the applicable
Restricted Shares Agreement.

          5.3  RIGHTS OF HOLDER. Restricted Shares issued at the beginning of
the Restriction Period shall constitute issued and outstanding shares of Common
Stock for all

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corporate purposes. The Holder will have the right to vote such Restricted
Shares, to receive and retain all regular cash dividends, and such other
distributions as the Board may in its sole discretion designate, paid or
distributed on such Restricted Shares and to exercise all other rights, powers
and privileges of a holder of Common Stock with respect to such Restricted
Shares, with the exception that (i) the Holder will not be entitled to delivery
of the stock certificate or certificates representing such Restricted Shares
until the Restriction Period shall have expired and unless all other vesting
requirements with respect thereto shall have been fulfilled; (ii) the Company
will retain custody of the stock certificate or certificates representing the
Restricted Shares during the Restriction Period; (iii) other than regular cash
dividends and such other distributions as the Board may in its sole discretion
designate, the Company will retain custody of all distributions ("Retained
Distributions") made or declared with respect to the Restricted Shares (and such
Retained Distributions will be subject to the same restrictions, terms and
conditions as are applicable to the Restricted Shares) until such time, if ever,
as the Restricted Shares with respect to which such Retained Distributions shall
have been made, paid or declared shall have become vested, and such Retained
Distributions shall not bear interest or be segregated in separate accounts;
(iv) the Holder may not sell, assign, transfer, pledge, exchange, encumber or
dispose of the Restricted Shares or any Retained Distributions during the
Restriction Period; and (v) a breach of any restrictions, terms or conditions
provided in the Plan or established by the Board with respect to any Restricted
Shares or Retained Distributions will cause a forfeiture of such Restricted
Shares and any Retained Distributions with respect thereto.

          5.4  ISSUANCE OF STOCK AT END OF THE RESTRICTION PERIOD. Restricted
Shares issued at the end of the Restriction Period shall not constitute issued
and outstanding shares of Common Stock and the Holder shall not have any of the
rights of a stockholder with respect to the shares of Common Stock covered by
such an award of Restricted Shares, in each case, until such shares shall have
been transferred to the Holder at the end of the Restriction Period. If and to
the extent that shares of Common Stock are to be issued at the end of the
Restriction Period, the Holder may be entitled to receive Dividend Equivalents
to the extent provided in the Restricted Shares Agreement.

     6. COMPLETION OF RESTRICTION PERIOD. On the Vesting Date with respect to
each award of Restricted Shares, and the satisfaction of any other applicable
restrictions, terms and conditions (a) Restricted Shares covered by that award
shall become vested and (b) Retained Distributions and unpaid Dividend
Equivalents, if any, with respect to such Restricted Shares shall become vested
to the extent that the Restricted Shares related thereto shall have become
vested, all in accordance with the terms of the applicable Restricted Shares
Agreement. Any such Restricted Shares, Retained Distributions and unpaid
Dividend Equivalents that shall not have become vested shall be forfeited to the
Company and the Holder shall not thereafter have any rights (including dividend
and voting rights) with respect to such Restricted Shares, Retained
Distributions and unpaid Dividend Equivalents that shall have been so forfeited.

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     7. ACCELERATION OF VESTING DATE. Unless the applicable Restricted Shares
Agreement provides otherwise, all outstanding awards of Restricted Shares shall
unconditionally vest in full upon the occurrence of any Approved Transaction,
Board Change or Control Purchase, and the date of the occurrence of any such
Approved Transaction, Board Change or Control Purchase shall be deemed to be the
Vesting Date for such Restricted Shares.

     8. TERMINATION OF EMPLOYMENT PRIOR TO EXPIRATION OF RESTRICTION PERIOD.

          8.1  GENERAL. If a Holder's employment shall terminate prior to the
expiration of the Restriction Period applicable to any award of Restricted
Shares, then such Restricted Shares shall be forfeited or shall vest, in whole
or in part, as provided in the applicable Restricted Shares Agreement; provided,
however, that any termination of a Holder's employment for cause will be treated
in accordance with the provisions of Section 8.2.

          8.2  TERMINATION FOR CAUSE. If a Holder's employment with the Company
or any of its Subsidiaries shall be terminated for cause by the Company or such
Subsidiary prior to the expiration of the Restriction Period applicable to any
award of Restricted Shares, then the Holder shall forfeit all of such Restricted
Shares, Retained Distributions and unpaid Dividend Equivalents with respect to
such Restricted Shares. For the purpose of this Section 8.2, cause shall have
the meaning ascribed thereto in any employment agreement to which such Holder is
a party. In the absence of an employment agreement, cause shall include but not
be limited to, insubordination, dishonesty, incompetence, moral turpitude, other
misconduct of any kind and the refusal to perform the Holder's duties and
responsibilities for any reason other than illness or incapacity; provided,
however, that if such termination occurs within 12 months after an Approved
Transaction, Control Purchase or Board Change, termination for cause in the
absence of an employment agreement shall mean only a felony conviction for
fraud, misappropriation or embezzlement.

          8.3  SPECIAL RULE. Notwithstanding any other provision of the Plan,
the Board may provide in the applicable Restricted Shares Agreement that the
award of Restricted Shares shall vest in a manner that differs from the
provisions otherwise herein set forth; provided, however, that the provisions of
any such Restricted Shares Agreement that differ from the provisions otherwise
set forth herein shall be effective only if reflected in the terms of an
employment agreement approved or ratified by the Board.

          8.4  MISCELLANEOUS. The Board may determine whether any given leave of
absence constitutes a termination of employment. Awards made under the Plan
shall not be affected by any change of employment so long as the Holder
continues to be an employee of the

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Company or one of its Subsidiaries.

     9. RIGHT OF COMPANY TO TERMINATE EMPLOYMENT. Nothing contained in the Plan
or in any award of Restricted Shares pursuant to the Plan shall confer on any
Holder any right to continue in the employ of the Company or any of its
Subsidiaries or interfere in any way with the right of the Company or a
Subsidiary to terminate the employment of the Holder at any time, with or
without cause, notwithstanding the possibility that one or more awards of
Restricted Shares may thereby be forfeited entirely.

     10. CHANGES IN STOCK. In the event of any stock split, dividend,
distribution, combination, reclassification or recapitalization that changes the
character or amount of the Common Stock prior to the expiration of the
Restriction Period with respect to any award of Restricted Shares, the Board
shall make such adjustments in the character and number of shares subject to
such award, as shall be equitable and appropriate in order to make such award,
immediately after any such change, as nearly as may be practicable, equivalent
to such award, immediately prior to any such change. If any merger,
consolidation or similar transaction affects the Common Stock subject to any
unvested award of Restricted Shares, the Board or any surviving or acquiring
corporation shall take such action as is equitable and appropriate to substitute
a new award for such award or to assume such award in order to make such new or
assumed award, as nearly as may be practicable, equivalent to the old award. If
any such change or transaction shall occur, the number and kind of shares for
which awards may thereafter be granted under the Plan shall be adjusted to give
effect thereto.

     11. NONALIENATION OF BENEFITS. Except as specifically provided in Section
20, no right or benefit under the Plan shall be subject to anticipation,
alienation, sale, assignment, hypothecation, pledge, exchange, transfer,
encumbrance or charge, and any attempt to anticipate, alienate, sell, assign,
hypothecate, pledge, exchange, transfer, encumber or charge the same shall be
void. No right or benefit hereunder shall in any manner be liable for or subject
to the debts, contracts, liabilities or torts of the person entitled to such
benefit.

     12. RESTRICTED SHARES AGREEMENT. Each award of Restricted Shares hereunder
shall be evidenced by an agreement in such form and containing such terms and
provisions not inconsistent with the provisions of the Plan as the Board from
time to time shall approve. Such agreement shall be entered into between the
Company and the Holder at the time of any award of Restricted Shares hereunder.
Such agreement may contain (but shall not be required to contain) such
provisions as the Board deems appropriate to ensure that the penalty provisions
of Section 4999 of the Code will not apply to any stock or cash received by the
Holder from the Company or any of its Subsidiaries.

     13. TERMINATION AND AMENDMENT OF PLAN. The Board may terminate or

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amend the Plan at any time in such respects as it shall deem advisable;
provided, however, that any such amendment shall comply with all applicable laws
and regulations and stock exchange listing requirements. No termination or
amendment of the Plan may, without the consent of the Holder to whom any award
of Restricted Shares shall theretofore have been granted, adversely affect the
rights of such Holder with respect to such award. With the consent of the Holder
and subject to the terms and conditions of the Plan, the Board may amend
outstanding Restricted Shares Agreements with any Holder, including, without
limitation, any amendment which would accelerate the Vesting Date with respect
to any award of Restricted Shares. Without limiting the generality of the
foregoing, the Board may but solely with the Holder's consent, agree to cancel
any award of Restricted Shares under the Plan and issue a new award in
substitution therefor, provided that the award so substituted shall satisfy all
of the requirements of the Plan as of the date such new award is made.

     14. GOVERNMENT AND OTHER REGULATIONS. Notwithstanding any other provisions
of the Plan, the obligations of the Company with respect to awards of Restricted
Shares shall be subject to all applicable laws, rules and regulations, and such
approvals by any governmental agencies as may be required. The Company reserves
the right to restrict, in whole or in part, the delivery of Common Stock
pursuant to any award of Restricted Shares under the Plan until such time as (a)
any legal requirements or regulations shall have been met relating to the
issuance of such Restricted Shares or to their registration, qualification or
exemption from registration or qualification under the Securities Act of 1933 or
any applicable state securities laws; and (b) satisfactory assurances shall have
been received that such Restricted Shares when issued will be duly listed on any
securities exchange on which the Common Stock may be listed.

     15. NONEXCLUSIVITY OF PLAN. The adoption of the Plan by the Board shall not
be construed as creating any limitations on the power of the Board to adopt such
other incentive arrangements as it may deem desirable, including without
limitation, the awarding of stock and cash awards otherwise than under the Plan,
and such arrangements may be either generally applicable or applicable only in
specific cases.

     16. WITHHOLDING TAXES. The Company's obligation to deliver stock to the
Holder upon the vesting of Restricted Shares shall be subject to applicable
federal, state, local and foreign tax withholding requirements. Federal, state,
local and foreign withholding taxes paid by a Holder upon the vesting of
Restricted Shares may be paid in shares of Common Stock upon such terms and
conditions as the Board shall determine; provided, however, that the Board in
its sole discretion may disapprove such payment and require that such taxes be
paid in cash.

     17. EXCLUSION FROM PENSION AND OTHER BENEFIT PLANS. By acceptance of an
award under the Plan, each Holder shall be deemed to have agreed that the award
of Restricted Shares is special incentive compensation and that it will not be
taken into

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account as "salary" or "compensation" or "bonus" in determining the amount of
any payment under any pension, retirement or other employee benefit plan of the
Company or any Subsidiary. In addition, each beneficiary of a deceased Holder
shall be deemed to have agreed that such award will not affect the amount of any
life insurance coverage, if any, provided by the Company or any Subsidiary on
the life of the Holder which is payable to such beneficiary under any life
insurance plan covering employees of the Company or any Subsidiary.

     18. GOVERNING LAW. The Plan shall be governed by, and construed in
accordance with, the laws of the State of New York.

     19. EFFECTIVE DATE OF THE PLAN. The Plan shall become effective on November
18, 1999, the date of its approval by the Board.

     20. BENEFICIAIRES. Each Holder may designate any person(s) or legal
entity(ies), including his or her estate, as his or her beneficiary under the
Plan. Such designation shall be made in writing on a form filed with the
Secretary of the Company or his or her designee and may be revoked or changed by
such Holder at any time by filing written notice of such revocation or change
with the Secretary of the Company or his or her designee. If no person shall be
designated by a Holder as his or her beneficiary or if no person designated as a
beneficiary survives such Holder, the Holder's beneficiary shall be his or her
estate.

                                       10<PAGE>
                                                                   EXHIBIT 10.10

                                                              As Amended through
                                                                January 16, 2003

                              AOL TIME WARNER INC.
                         1988 Restricted Stock Plan For
                             Non-Employee Directors

         1. PURPOSE. The purpose of the Plan is to supplement the compensation
paid to Outside Directors and to increase their proprietary interest in the
Company and their identification with the interests of the Company's
stockholders, by grants of annual awards of Common Stock.

         2. CERTAIN DEFINITIONS.

                  (a) "AOL Time Warner" shall mean AOL Time Warner Inc., a
Delaware corporation, and any successor thereto.

                  (b) "Average Market Price" shall mean the average (rounded to
the nearest cent) of the means between the high and low sales prices of a share
of Common Stock as reported on the New York Stock Exchange Composite Tape for
the ten consecutive trading days ending on the date of the annual meeting of
stockholders of the Company for the year with respect to which an annual grant
of Restricted Shares is automatically made pursuant to paragraph 5 of the Plan.

                  (c) "Board" shall mean the Board of Directors of the
Company.

                  (d) "Commission" shall mean the Securities and Exchange
Commission.

                  (e) "Common Stock" shall mean the Common Stock, par value $.01
per share, of the Company.

                  (f) "Company" shall mean (i) with respect to periods prior to
January 11, 2001, Time Warner Inc. and (ii) with respect to periods on and after
January 11, 2001, AOL Time Warner.

                  (g) "Grant Date" shall have the meaning set forth in
paragraph 5 of the Plan.

                  (h) "Outside Director" shall mean a member of the Board of
Directors of the

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Company who, as of the close of business on the date of the annual meeting of
stockholders of the Company, is not an employee of the Company or any subsidiary
of the Company. For the purposes hereof, a "subsidiary" of the Company shall
mean any corporation, partnership or other entity in which the Company owns,
directly or indirectly, an equity interest of 50% or more.

                  (i) "Plan" shall mean this 1988 Restricted Stock Plan for
Non-Employee Directors of the Company.

                  (j) "Retained Distributions" shall mean distributions which
are retained by the Company pursuant to paragraph 6(b) of the Plan.

                  (k) "Restricted Shares" shall mean shares of Common Stock
automatically granted to an Outside Director pursuant to paragraph 5 of the
Plan.

                  (l) "Restriction Period" shall mean the period of time
specified in paragraph 6(a) hereof applicable to all Restricted Shares granted
under the Plan.

         3. SHARES SUBJECT TO THE PLAN. Subject to the provisions of paragraph 9
hereof, the maximum aggregate number of Restricted Shares which may be issued
under the Plan in any calendar year, commencing with calendar year 1999, shall
be equal to .003% of the shares of Common Stock outstanding on December 31st of
the preceding calendar year. Any Restricted Shares available for grant in any
calendar year which are not granted in that calendar year shall not be available
for grant in any subsequent calendar year and any Restricted Shares awarded in
any calendar year that are forfeited by the terms of the Plan in any subsequent
calendar year shall not again be available for awards. No fractional shares of
Common Stock shall be granted or issued under the Plan.

         The Restricted Shares may be, in whole or in part, authorized but
unissued shares of Common Stock or shares of Common Stock previously issued and
outstanding and reacquired by the Company.

         4. ELIGIBILITY. Subject to the last sentence of paragraph 5 hereof,
the only persons eligible to participate in the Plan shall be Outside Directors.

         5. ANNUAL GRANTS. Subject to the provisions of paragraph 3 hereof, each
Outside Director shall automatically be granted under the Plan, as of the
conclusion of each annual meeting of stockholders of the Company (the "Grant
Date"), that number of Restricted Shares equal to (a) for Grant Dates occurring
during calendar years 1990 through 1998, $30,000 divided by the Average Market
Price of the Common Stock on the Grant

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Date and (b) for Grant Dates occurring during calendar year 1999 and thereafter,
that number of Restricted Shares equal to a dollar amount determined by the
Board of Directors on or before the Grant Date divided by the Average Market
Price of the Common Stock on the Grant Date, and except as hereinafter provided,
the Company shall promptly thereafter issue such shares, in each case without
any further action required to be taken by the Board or any committee thereof.
The Company shall not be required to issue fractions of Restricted Shares and in
lieu thereof any fractional Restricted Share shall be rounded to the next whole
number. Notwithstanding the foregoing, in the case of an Outside Director who,
as of any Grant Date, has not continuously served as a member of the Board for a
period of at least six consecutive months (a "new Outside Director"), the
Restricted Shares granted to such new Outside Director on such Grant Date shall
not be issued in such new Outside Director's name until six months after such
new Outside Director shall have first become a new Outside Director. An
individual who shall become an Outside Director subsequent to the date of the
annual meeting of stockholders of the Company for any year shall first become
eligible to participate in the Plan commencing on the date of the next annual
meeting of stockholders of the Company.

         6. RESTRICTION PERIOD; RESTRICTIONS APPLICABLE TO RESTRICTED SHARES;
CERTIFICATES REPRESENTING RESTRICTED SHARES.

                  (a) Restricted Shares granted to an Outside Director pursuant
to the Plan shall be subject to the possibility of forfeiture and the
restrictions set forth in paragraph 6(b) below for a period (the "Restriction
Period") commencing on the date such Restricted Shares shall have been
automatically granted to such Outside Director pursuant to paragraph 5 of the
Plan and ending on the earliest of the following events:

                           (i) the date such Outside Director ceases to be a
         director of the Company by reason of mandatory retirement pursuant to
         any policy or plan of the Company applicable to Outside Directors;

                           (ii) the date such Outside Director, having been
         nominated for reelection, is not reelected by the stockholders of the
         Company to serve as a member of the Board;

                           (iii) the date of death of such Outside Director;

                           (iv) the date such Outside Director terminates
         service on the Board on account of medical or health reasons which
         render such Outside Director unable to continue to serve as a member of
         the Board;

                                      -3-

<PAGE>

                           (v)  the occurrence of a Change in Control of the
         Company (as defined in paragraph 6(c) below); or

                           (vi) in each of the four years following the date of
         grant, on the first day of the month in which a grant of Restricted
         Shares was made to an Outside Director pursuant to paragraph 5 of the
         Plan with respect to 25% of the number of Restricted Shares in such
         grant, beginning with grants made in 2003;

provided, however, that, in the discretion of the Board on a case by case basis,
the Restriction Period applicable to all Restricted Shares granted to an Outside
Director shall end and be deemed completed for all purposes of the Plan in the
event an Outside Director (a "withdrawing Outside Director") terminates his or
her service as a member of the Board (A) for reasons of personal or financial
hardship; (B) to serve in any governmental, diplomatic or any other public
service position or capacity; (C) to avoid or protect against a conflict of
interest of any kind; (D) on the advice of legal counsel; or (E) for any other
extraordinary circumstance that the Board determines to be comparable to the
foregoing. The withdrawing Outside Director shall abstain from participating in
any determination made by the Board with respect to any matter relating to the
foregoing.

                  (b) Restricted Shares, when issued, will be represented by a
stock certificate or certificates registered in the name of the Outside Director
to whom such Restricted Shares shall have been granted. Each such certificate
shall bear a legend in substantially the following form:

                  "The shares represented by this certificate are subject to the
                  terms and conditions (including forfeiture and restrictions
                  against transfer) contained in the AOL Time Warner Inc. 1988
                  Restricted Stock Plan for Non-Employee Directors. A copy of
                  such Plan is on file in the Office of the Secretary of AOL
                  Time Warner Inc."

                  Such certificates shall be deposited by such Outside Director
with the Company, together with stock powers or other instruments of assignment,
each endorsed in blank, which will permit transfer to the Company of all or any
portion of the Restricted Shares and any securities constituting Retained
Distributions that shall be forfeited or that shall not become vested in
accordance with the Plan. Restricted Shares shall constitute issued and
outstanding shares of Common Stock for all corporate purposes. The Outside
Director will have the right to vote such Restricted Shares, to receive and
retain all regular cash dividends paid on such Restricted Shares and to exercise
all other rights, powers and privileges of a holder of Common stock with respect
to such Restricted Shares, with the

                                      -4-
<PAGE>

exception that (i) the Outside Director will not be entitled to delivery of the
stock certificate or certificates representing such Restricted Shares until the
Restriction Period shall have expired and unless all other vesting requirements
with respect thereto shall have been fulfilled; (ii) the Company will retain
custody of the stock certificate or certificates representing the Restricted
Shares during the Restriction Period; (iii) other than regular cash dividends
the Company will retain custody of all distributions ("Retained Distributions")
made or declared with respect to the Restricted Shares (and such Retained
Distributions will be subject to the same restrictions, terms and conditions as
are applicable to the Restricted Shares) until such time, if ever, as the
Restricted Shares with respect to which such Retained Distributions shall have
been made, paid or declared shall have become vested, and such Retained
Distributions shall not bear interest or be segregated in separate accounts;
(iv) an Outside Director may not sell, assign, transfer, pledge, exchange,
encumber or dispose of any Restricted Shares or any Retained Distributions
during the Restriction Period; and (v) a breach of any restrictions, terms or
conditions provided in the Plan or established by the Board with respect to any
Restricted Shares or Retained Distributions will cause a forfeiture of such
Restricted Shares and any Retained Distributions with respect thereto.

                  (c) A "Change in Control" of the Company shall be deemed to
have occurred on the date upon which (i) the Board (or, if approval of the Board
is not required as a matter of law, the stockholders of the Company) shall
approve (a) any consolidation or merger of the Company in which the Company is
not the continuing or surviving corporation or pursuant to which shares of
Common Stock would be converted into cash, securities or other property, other
than a merger of the Company in which the holders of Common Stock immediately
prior to the merger have the same proportionate ownership of common stock of the
surviving corporation immediately after the merger, or (b) any sale, lease,
exchange, or other transfer (in one transaction or a series of related
transactions) of all, or substantially all, of the assets of the Company, or (c)
the adoption of any plan or proposal for the liquidation or dissolution of the
Company, or (ii) any person (as such term is defined in Section 13(d)(3) and
14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act")), corporation, or other entity shall purchase any Common Stock of the
Company (or securities convertible into the Common Stock) for cash, securities
or any other consideration pursuant to a tender offer or exchange offer, without
the prior consent of the Board, or any such person, corporation or other entity
(other than the Company or any benefit plan sponsored by the Company or any
subsidiary) shall become the "beneficial owner" (as such term is defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing 20 percent or more of the combined voting power of the then
outstanding securities of the Company ordinarily (and apart from rights accruing
under special circumstances) having the right to vote in the election of
directors (calculated as provided in paragraph (d) of such Rule 13d-3 in the
case

                                      -5-
<PAGE>

of rights to acquire the Company's securities), or (iii) during any period
of two consecutive years, individuals who at the beginning of such period
constitute the entire Board shall cease for any reason to constitute a majority
thereof unless the election, or the nomination for election by the Company's
stockholders, of each new director was approved by a vote of at least two-thirds
of the directors then still in office who were directors at the beginning of the
period.

         7. COMPLETION OF RESTRICTION PERIOD; FORFEITURE. Upon the completion of
the Restriction Period with respect to Restricted Shares of an Outside Director,
and the satisfaction of any other applicable restrictions, terms and conditions,
such Restricted Shares issued to such Outside Director and any Retained
Distributions with respect to such Restricted Shares shall become vested. The
Company shall promptly thereafter issue and deliver to the Outside Director new
stock certificates or instruments representing the Restricted Shares and any
other Retained Distributions related to such Restricted Shares registered in the
name of the Outside Director or, if deceased, his or her legatee, personal
representative or distributee, which do not contain the legend set forth in
paragraph 6(b) hereof.

         If an Outside Director ceases to be a member of the Board for any
reason other than as set forth in clauses (i) through (v) of paragraph 6(a)
hereof or as the Board may otherwise approve in accordance with paragraph 6(a),
then those Restricted Shares issued to such Outside Director and all Retained
Distributions with respect thereto that have not satisfied the Restriction
Period because the time periods set forth in clause (vi) of paragraph 6(a) have
not passed, shall be forfeited to the Company, and the Outside Director shall
not thereafter have any rights (including dividend and voting rights) with
respect to such Restricted Shares and Retained Distributions.

         8. STATEMENT OF ACCOUNT. Each Outside Director shall receive an annual
statement, on or about June 1st, showing the number of Restricted Shares granted
to such Outside Director for that year and the aggregate number of Restricted
Shares that have been granted to such Outside Director under the Plan in or
after 2003.

         9. ADJUSTMENT IN EVENT OF CHANGES IN COMMON STOCK. In the event of a
recapitalization, stock split, stock dividend, combination or exchange of
shares, merger, consolidation or liquidation or the like, the aggregate number
and class of Restricted Shares available for grant under the Plan shall be
appropriately adjusted by the Board, whose determination shall be conclusive.

         10. NO RIGHT TO NOMINATION. Nothing contained in the Plan shall confer

                                      -6-
<PAGE>

upon any Outside Director the right to be nominated for reelection to the Board.

         11. NONALIENATION OF BENEFITS. No right or benefit under the Plan shall
be subject to anticipation, alienation, sale, assignment, hypothecation, pledge,
exchange, transfer, encumbrance or charge, and any attempt to anticipate,
alienate, sell, assign, hypothecate, pledge, exchange, transfer, encumber or
charge the same shall be void. No right or benefit hereunder shall in any manner
be liable for or subject to the debts, contracts, liabilities or torts of the
person entitled to such benefit. If any Outside Director or beneficiary
hereunder should become bankrupt or attempt to anticipate, alienate, sell,
assign, hypothecate, pledge, exchange, transfer, encumber or charge any right or
benefit hereunder, then such right or benefit shall, in the discretion of the
Board, cease and terminate, and in such event, the Board in its discretion may
hold or apply the same or any part thereof for the benefit of the Outside
Director, his or her beneficiary, spouse, children or other dependents, or any
of them, in such manner and in such proportion as the Board may deem proper.

         12. APPOINTMENT OF ATTORNEY-IN-FACT. Upon the issuance of any
Restricted Shares hereunder and the delivery by an Outside Director of the stock
power referred to in paragraph 6(b) hereof, such Outside Director shall be
deemed to have appointed the Company, its successors and assigns, the
attorney-in-fact of the Outside Director, with full power of substitution, for
the purpose of carrying out the provisions of this Plan and taking any action
and executing any instruments which such attorney-in-fact may deem necessary or
advisable to accomplish the purposes hereof, which appointment as
attorney-in-fact shall be irrevocable and coupled with an interest. The Company
as attorney-in-fact for the Outside Director may in the name and stead of the
Outside Director make and execute all conveyances, assignments and transfers of
the Restricted Shares and Retained Distributions deposited with the Company
pursuant to paragraph 6(b) of the Plan and the Outside Director hereby ratifies
and confirms all that the Company, as said attorney-in-fact, shall do by virtue
thereof.

         Nevertheless, the Outside Director shall, if so requested by the
Company, execute and deliver to the Company all such instruments as may, in the
judgment of the Company, be advisable for the purpose.

         13. SECTION 4999 RULES. Notwithstanding any provisions to the contrary
contained in the Plan, if the Payment (as hereinafter defined) due to the
Outside Director hereunder upon the occurrence of a Change in Control of the
Company would be subject to the excise tax imposed by Section 4999 (or any
successor thereto) of the Internal Revenue Code of 1986 (the "Code"), then any
such Payment hereunder payable to the Outside Director shall be reduced to the
largest amount that will result in no portion of the aggregate

                                      -7-
<PAGE>

of the Payments from the Company being subject to such excise tax. The term
"Payment" shall mean any transfer of property within the meaning of Section 280G
(or any successor thereto) of the Code.

         The determination of any reduction in Payments under the Plan shall be
made by the Outside Director in good faith, and such determination shall be
conclusive and binding on the Company. The Outside Director shall have the right
to determine the extent to which the aggregate amount of any such reduction
shall be applied against any cash or any shares of stock of the Company or any
other securities or property to which the Outside Director would otherwise have
been entitled under the Plan, the extent to which the Payments hereunder and any
other payments due to the Outside Director from the Company shall be reduced,
and whether to waive the right to the acceleration of any portion of the Payment
due hereunder or otherwise due to the Outside Director from the Company, and any
such determination shall be conclusive and binding on the Company. To the extent
that Payments hereunder are not paid as a consequence of the limitation
contained in this paragraph 13, then the Restricted Shares and Retained
Distributions not so accelerated shall be deemed to remain outstanding and shall
be subject to the provisions of the Plan as if no acceleration had occurred.

         If (a) the Company shall make any Payments pursuant to the Plan to the
Outside Director, (b) an excise tax under Section 4999 (or any successor
thereto) of the Code is in fact paid by the Outside Director (or is claimed by
the Internal Revenue Service to be due) as a result of any such Payment, either
alone or together with any other Payments received or to be received by the
Outside Director from the Company, and (c) if nationally recognized counsel to
the Outside Director or the Company shall have given an opinion of counsel that
repayment of all or a portion of such Payments would result in such excise tax
being refunded to the Outside Director (or, if not paid, in such excise tax not
being imposed), then the Outside Director shall repay to the Company all or such
portion of such Payments so that such excise tax will be refunded (or will not
apply).

         The Company shall pay all legal fees and expenses which the Outside
Director may incur in any contest of the Outside Director's interpretation of,
or determinations under, the provisions of this paragraph 13.

         14. WITHHOLDING TAXES.

                  (a) At the time any Restricted Shares or Retained
Distributions become vested or payable, each Outside Director shall pay to the
Company the amount of any Federal, state or local taxes of any kind required by
law to be withheld with respect thereto.

                                       -8-
<PAGE>

                  (b) If an Outside Director properly elects (which, apart from
any other notice required by law, shall require that the Outside Director notify
the Company of such election at the time it is made) within 30 days after the
Company grants Restricted Shares to an Outside Director to include in gross
income for Federal income tax purposes an amount equal to the fair market value
of such Restricted Shares at the Grant Date, he or she shall pay to the Company
at the time of such election the amount of any Federal, state or local taxes
required to be withheld with respect to such Restricted Shares.

                  (c) If an Outside Director shall fail to make the payments
required hereunder, the Company shall, to the extent permitted by law, have the
right to deduct from any payment of any kind otherwise due to such Outside
Director any Federal, state or local taxes of any kind required by law to be
withheld with respect to such Restricted Shares.

         15. AMENDMENT AND TERMINATION OF PLAN. The Plan shall have a term of 10
years from the date stockholder approval regarding the Plan was last obtained
and, therefore, the Plan shall terminate on May 19, 2009, and no further
Restricted Shares may be granted pursuant to the Plan after that date. The Board
may terminate the Plan at any time prior to such termination date and may make
such amendments to the Plan as it shall deem advisable; provided, however, that
no termination or amendment of the Plan shall adversely affect the right of any
Outside Director (without his or her consent) under any grant previously made
and any amendment shall comply with all applicable laws and regulations and
stock exchange listing requirements.

         16. GOVERNMENT AND OTHER REGULATIONS. Notwithstanding any other
provisions of the Plan, the obligations of the Company with respect to
Restricted Shares shall be subject to all applicable laws, rules and
regulations, and such approvals by any governmental agencies as may be required
or deemed appropriate by the Company. The Company reserves the right to delay or
restrict, in whole or in part, the issuance or delivery of Common Stock pursuant
to any grants of Restricted Shares under the Plan until such time as:

                  (a) any legal requirements or regulations shall have been met
relating to the issuance of such Restricted Shares or to their registration,
qualification or exemption from registration or qualification under the
Securities Act of 1933 or any applicable state securities laws; and

                  (b) satisfactory assurances shall have been received that such
Restricted Shares when delivered will be duly listed on any applicable stock
exchange.

                                      -9-
<PAGE>

         17. NONEXCLUSIVITY OF PLAN. Neither the adoption of the Plan by the
Board nor the submission of the Plan to the stockholders of the Company for
approval shall be construed as creating any limitations on the power of the
Board to adopt such other incentive arrangements as it may deem desirable,
including without limitation, the awarding of stock otherwise than under the
Plan, and such arrangements may be either generally applicable or applicable
only in specific cases.

         18. GOVERNING LAW. The Plan shall be governed by, and construed in
accordance with, the laws of the State of New York.

         19. EFFECTIVE DATE OF THE PLAN. The Plan shall become effective on a
date which is the latter of (i) the date the Plan is approved by the
stockholders of the Company entitled to vote at the annual meeting of
stockholders of the Company to be held in 1988, or any adjournment thereof; and
(ii) the date on which the Company receives a favorable interpretative letter
from the Commission to the effect that (x) the grant of Restricted Shares under
the Plan is exempt from the operation of Section 16(b) of the Exchange Act and
(y) Outside Directors who receive Restricted Shares under the Plan will continue
to be "disinterested persons" within the meaning of Rule 16b-3 under the
Exchange Act with respect to administration of the Company's other stock related
plans in which only employees of the Company (including officers, whether or not
they are directors) and its subsidiaries may participate.

         20. BENEFICIARIES. Each Outside Director may designate any person(s) or
legal entity(ies), including his or her estate, as his or her beneficiary under
the Plan. Such designation shall be made in writing on a form filed with the
Secretary of the Company or his or her designee and may be revoked or changed by
an Outside Director at any time by filing written notice of such revocation or
change with the Secretary of the Company or his or her designee. If no person
shall be designated by an Outside Director as his or her beneficiary or if no
person designated by such Outside Director as his or her beneficiary survives
such Outside Director, the Outside Director's beneficiary shall be his or her
estate.

                                      -10-

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