Document:

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                                                                    EXHIBIT 10.8

                                                              As Amended through
                                                               November 20, 2003

                                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      "Time Warner" shall mean Time Warner Inc. (formerly
                           named 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.

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                  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.

                  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, Historic TW Inc. (formerly named
                           Time Warner Inc.), a Delaware corporation, and (ii)
                           with respect to periods on and after January 11,
                           2001, 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).

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                  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 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

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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 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

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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
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

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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 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

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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.

         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.

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                  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 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

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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 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.

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         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 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. BENEFICIARIES. The Holder's beneficiary in the event of his or her
death shall be his or her estate.

                                       10<PAGE>
                                                                    EXHIBIT 10.9

                                                              AS AMENDED THROUGH
                                                               NOVEMBER 20, 2003

                                TIME WARNER INC.

                            2003 STOCK INCENTIVE PLAN

1.       PURPOSE OF THE PLAN

                  The purpose of the Plan is to aid the Company and its
Affiliates in recruiting and retaining employees, directors, advisors and
consultants and to motivate such employees, directors, advisors and consultants
to exert their best efforts on behalf of the Company and its Affiliates by
providing incentives through the granting of Awards. The Company expects that it
will benefit from the added interest which such employees, directors, advisors
and consultants will have in the welfare of the Company as a result of their
proprietary interest in the Company's success.

2.       DEFINITIONS

                  The following capitalized terms used in the Plan have the
respective meanings set forth in this Section:

                  (A)      "ACT" means The Securities Exchange Act of 1934, as
                           amended, or any successor thereto.

                  (B)      "AFFILIATE" means any entity that is consolidated
                           with the Company for financial reporting purposes or
                           any other entity designated by the Board in which the
                           Company or an Affiliate has a direct or indirect
                           equity interest of at least twenty percent (20%),
                           measured by reference to vote or value.

                  (C)      "AWARD" means an Option, Stock Appreciation Right,
                           Restricted Stock or Other Stock-Based Award granted
                           pursuant to the Plan.

                  (D)      "BOARD" means the Board of Directors of the Company.

                  (E)      "CHANGE IN CONTROL" means the occurrence of any of
                           the following events:

                                    (i) any "Person" within the meaning of
                           Section 13(d)(3) or 14(d)(2) of the Act (other than
                           the Company or any company owned, directly or
                           indirectly, by the shareholders of the Company in
                           substantially the same proportions as their ownership
                           of stock of the Company) becomes the "Beneficial
                           Owner" within the meaning of Rule 13d-3 promulgated
                           under the Act of 30% or more of the combined voting
                           power of the then outstanding securities of the
                           Company entitled to vote generally in the election of
                           directors; excluding, however, any circumstance in
                           which such beneficial ownership resulted from any
                           acquisition by an employee benefit plan (or related
                           trust) sponsored or maintained by the Company or by
                           any

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                           corporation controlling, controlled by, or under
                           common control with, the Company;

                                    (ii) a change in the composition of the
                           Board since the Effective Date, such that the
                           individuals who, as of such date, constituted the
                           Board (the "INCUMBENT BOARD") cease for any reason to
                           constitute at least a majority of such Board;
                           provided that any individual who becomes a director
                           of the Company subsequent to the Effective Date whose
                           election, or nomination for election by the Company's
                           stockholders, was approved by the vote of at least a
                           majority of the directors then comprising the
                           Incumbent Board shall be deemed a member of the
                           Incumbent Board; and provided further, that any
                           individual who was initially elected as a director of
                           the Company as a result of an actual or threatened
                           election contest, as such terms are used in Rule
                           14a-12 of Regulation 14A promulgated under the Act,
                           or any other actual or threatened solicitation of
                           proxies or consents by or on behalf of any person or
                           Entity other than the Board shall not be deemed a
                           member of the Incumbent Board;

                                    (iii) a reorganization, recapitalization,
                           merger or consolidation (a "CORPORATE TRANSACTION")
                           involving the Company, unless securities representing
                           60% or more of the combined voting power of the then
                           outstanding voting securities entitled to vote
                           generally in the election of directors of the Company
                           or the corporation resulting from such Corporate
                           Transaction (or the parent of such corporation) are
                           held subsequent to such transaction by the person or
                           persons who were the beneficial holders of the
                           outstanding voting securities entitled to vote
                           generally in the election of directors of the Company
                           immediately prior to such Corporate Transaction, in
                           substantially the same proportions as their ownership
                           immediately prior to such Corporate Transaction; or

                                    (iv) the sale, transfer or other disposition
                           of all or substantially all of the assets of the
                           Company.

                  (F)      "CODE" means The Internal Revenue Code of 1986, as
                           amended, or any successor thereto.

                  (G)      "COMMITTEE" means the Compensation and Human
                           Development Committee of the Board or its successor,
                           or such other committee of the Board to which the
                           Board has delegated power to act under or pursuant to
                           the provisions of the Plan or a subcommittee of the
                           Compensation and Human Development Committee (or such
                           other committee) established by the Compensation and
                           Human Development Committee or such other committee.

                  (H)      "COMPANY" means Time Warner Inc., a Delaware
                           corporation named AOL Time Warner Inc. prior to
                           October 16, 2003.

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                  (I)      "EFFECTIVE DATE" means the date the Board approved
                           the Plan (March 20, 2003).

                  (J)      "EMPLOYMENT" means (i) a Participant's employment if
                           the Participant is an employee of the Company or any
                           of its Affiliates, (ii) a Participant's services as a
                           consultant, if the Participant is a consultant to the
                           Company or any of its Affiliates and (iii) a
                           Participant's services as a non-employee director, if
                           the Participant is a non-employee member of the Board
                           or the board of directors of an Affiliate; provided
                           however that unless otherwise determined by the
                           Committee, a change in a Participant's status from
                           employee to non-employee (other than a director of
                           the Company or an Affiliate) shall constitute a
                           termination of employment hereunder.

                  (K)      "FAIR MARKET VALUE" means, on a given date, (i) if
                           there should be a public market for the Shares on
                           such date, the average of the high and low prices of
                           the Shares on the New York Stock Exchange, or, if the
                           Shares are not listed or admitted on any national
                           securities exchange, the average of the per Share
                           closing bid price and per Share closing asked price
                           on such date as quoted on the National Association of
                           Securities Dealers Automated Quotation System (or
                           such market in which such prices are regularly
                           quoted)(the "NASDAQ"), or, if no sale of Shares shall
                           have been reported on the New York Stock Exchange or
                           quoted on the NASDAQ on such date, then the
                           immediately preceding date on which sales of the
                           Shares have been so reported or quoted shall be used,
                           and (ii) if there should not be a public market for
                           the Shares on such date, the Fair Market Value shall
                           be the value established by the Committee in good
                           faith.

                  (L)      "ISO" means an Option that is also an incentive stock
                           option granted pursuant to Section 6(e).

                  (M)      "OTHER STOCK-BASED AWARDS" means awards granted
                           pursuant to Section 9.

                  (N)      "OPTION" means a stock option granted pursuant to
                           Section 6.

                  (O)      "OPTION PRICE" means the price for which a Share can
                           be purchased upon exercise of an Option, as
                           determined pursuant to Section 6(a).

                  (P)      "PARTICIPANT" means an employee, prospective
                           employee, director, advisor or consultant of the
                           Company or an Affiliate who is selected by the
                           Committee to participate in the Plan.

                  (Q)      "PERFORMANCE-BASED AWARDS" means certain Other
                           Stock-Based Awards granted pursuant to Section 9(b).

                  (R)      "PLAN" means the Time Warner Inc. 2003 Stock
                           Incentive Plan, as amended from time to time.

<PAGE>
                                       4

                  (s)      "RESTRICTED STOCK" means any Share granted under
                           Section 8.

                  (t)      "SHARES" means shares of common stock of the Company,
                           $.01 par value per share.

                  (u)      "STOCK APPRECIATION RIGHT" means a stock appreciation
                           right granted pursuant to Section 7.

                  (v)      "SUBSIDIARY" means a subsidiary corporation, as
                           defined in Section 424(f) of the Code (or any
                           successor section thereto), of the Company.

3.       SHARES SUBJECT TO THE PLAN

                  The total number of Shares which may be issued under the Plan
is 200,000,000, of which no more than 20% may be issued in the form of
Restricted Stock or Other Stock-Based Awards payable in Shares. The maximum
aggregate number of Shares with respect to which Awards may be granted during a
calendar year, net of any Shares which are subject to Awards (or portions
thereof) which, during such year, terminate or lapse without payment of
consideration, shall be equal to 2% of the number of Shares outstanding on
December 31 of the preceding calendar year. The maximum number of Shares with
respect to which Awards may be granted during a calendar year to any Participant
shall be 2,000,000; provided that the maximum number of Shares that may be
awarded in the form of Restricted Stock or Other Stock-Based Awards payable in
Shares during any calendar year to any Participant shall be 600,000. The Shares
may consist, in whole or in part, of unissued Shares or treasury Shares. The
issuance of Shares or the payment of cash upon the exercise of an Award or in
consideration of the cancellation or termination of an Award shall reduce the
total number of Shares available under the Plan, as applicable. Shares which are
subject to Awards (or portions thereof) which terminate or lapse without the
payment of consideration may be granted again under the Plan.

4.       ADMINISTRATION

                  (a)      The Plan shall be administered by the Committee,
                           which may delegate its duties and powers in whole or
                           in part to any subcommittee thereof consisting solely
                           of at least two individuals who are intended to
                           qualify as "Non-Employee Directors" within the
                           meaning of Rule 16b-3 under the Act (or any successor
                           rule thereto) and, to the extent required by Section
                           162(m) of the Code (or any successor section
                           thereto), "outside directors" within the meaning
                           thereof. In addition, the Committee may delegate the
                           authority to grant Awards under the Plan to any
                           employee or group of employees of the Company or an
                           Affiliate; provided, that such grants are consistent
                           with guidelines established by the Committee from
                           time to time.

                  (b)      The Committee shall have the full power and authority
                           to make, and establish the terms and conditions of,
                           any Award to any person eligible to be a Participant,
                           consistent with the provisions of the Plan and to
                           waive any such terms and conditions at any time
                           (including, without limitation, accelerating or
                           waiving any vesting conditions). Awards may, in the
<PAGE>
                                       5

                           discretion of the Committee, be made under the Plan
                           in assumption of, or in substitution for, outstanding
                           awards previously granted by the Company or its
                           affiliates or a company acquired by the Company or
                           with which the Company combines. The number of Shares
                           underlying such substitute awards shall be counted
                           against the aggregate number of Shares available for
                           Awards under the Plan.

                  (c)      The Committee is authorized to interpret the Plan, to
                           establish, amend and rescind any rules and
                           regulations relating to the Plan, and to make any
                           other determinations that it deems necessary or
                           desirable for the administration of the Plan, and may
                           delegate such authority, as it deems appropriate. The
                           Committee may correct any defect or supply any
                           omission or reconcile any inconsistency in the Plan
                           in the manner and to the extent the Committee deems
                           necessary or desirable. Any decision of the Committee
                           in the interpretation and administration of the Plan,
                           as described herein, shall lie within its sole and
                           absolute discretion and shall be final, conclusive
                           and binding on all parties concerned (including, but
                           not limited to, Participants and their beneficiaries
                           or successors).

                  (d)      The Committee shall require payment of any amount it
                           may determine to be necessary to withhold for
                           federal, state, local or other taxes as a result of
                           the exercise, grant or vesting of an Award. Unless
                           the Committee specifies otherwise, the Participant
                           may elect to pay a portion or all of such withholding
                           taxes by (a) delivery of Shares or (b) having Shares
                           withheld by the Company with a Fair Market Value
                           equal to the minimum statutory withholding rate from
                           any Shares that would have otherwise been received by
                           the Participant.

5.       LIMITATIONS

                  (a)      No Award may be granted under the Plan after the
                           fifth anniversary of the meeting of shareholders of
                           the Company at which the Plan is approved (which
                           meeting was held on May 16, 2003), but Awards granted
                           prior to such fifth anniversary may extend beyond
                           that date.

                  (b)      No Option or Stock Appreciation Right, once granted
                           hereunder, may be repriced.

                  (c)      With respect to any Awards granted to a Participant
                           who is a non-employee member of the Board at the time
                           of grant, such Awards shall be made pursuant to
                           formulas established by the Board in advance of such
                           grant. Any such Awards shall be made at the time such
                           a Participant first becomes a member of the Board
                           and, thereafter, on an annual basis at or following
                           the annual meeting of stockholders. Such formulas may
                           include any one or more of the following: (i) a fixed
                           number of Options or Stock Appreciation Rights, (ii)
                           a fixed number of Shares of Restricted Stock or a
                           number of Shares of Restricted Stock determined by
                           reference to a fixed dollar amount (calculated based
                           on the Fair Market Value of a Share on

<PAGE>
                                       6

                           the date of grant), and (iii) Other Stock-Based
                           Awards determined either by reference to a fixed
                           number of Shares or to a fixed dollar amount
                           (calculated based on the Fair Market Value of a Share
                           on the date of grant).

6.       TERMS AND CONDITIONS OF OPTIONS

                  Options granted under the Plan shall be, as determined by the
Committee, nonqualified or incentive stock options for federal income tax
purposes, as evidenced by the related Award agreements, and shall be subject to
the foregoing and the following terms and conditions and to such other terms and
conditions, not inconsistent therewith, as the Committee shall determine, and as
evidenced by the related Award agreement:

                  (a)      Option Price. The Option Price per Share shall be
                           determined by the Committee, but shall not be less
                           than 100% of the Fair Market Value of a Share on the
                           date an Option is granted.

                  (b)      Exercisability. Options granted under the Plan shall
                           be exercisable at such time and upon such terms and
                           conditions as may be determined by the Committee, but
                           in no event shall an Option be exercisable more than
                           ten years after the date it is granted, except as may
                           be provided pursuant to Section 15.

                  (c)      Exercise of Options. Except as otherwise provided in
                           the Plan or in an Award agreement, an Option may be
                           exercised for all, or from time to time any part, of
                           the Shares for which it is then exercisable. For
                           purposes of this Section 6, the exercise date of an
                           Option shall be the date a notice of exercise is
                           received by the Company, together with provision for
                           payment of the full purchase price in accordance with
                           this Section 6(c). The purchase price for the Shares
                           as to which an Option is exercised shall be paid to
                           the Company, as designated by the Committee, pursuant
                           to one or more of the following methods: (i) in cash
                           or its equivalent (e.g., by check); (ii) in Shares
                           having a Fair Market Value equal to the aggregate
                           Option Price for the Shares being purchased and
                           satisfying such other requirements as may be imposed
                           by the Committee; provided, that such Shares have
                           been held by the Participant for no less than six
                           months (or such other period as established from time
                           to time by the Committee in order to avoid adverse
                           accounting treatment applying generally accepted
                           accounting principles); (iii) partly in cash and
                           partly in such Shares or (iv) if there is a public
                           market for the Shares at such time, through the
                           delivery of irrevocable instructions to a broker to
                           sell Shares obtained upon the exercise of the Option
                           and to deliver promptly to the Company an amount out
                           of the proceeds of such Sale equal to the aggregate
                           Option Price for the Shares being purchased. No
                           Participant shall have any rights to dividends or
                           other rights of a stockholder with respect to Shares
                           subject to an Option until the Participant has given
                           written notice of exercise of the Option, paid in
                           full for such Shares and, if applicable, has
                           satisfied any other conditions imposed by the
                           Committee pursuant to the Plan.

<PAGE>
                                       7

                  (d)      Deferral. In the sole discretion of the Committee, in
                           accordance with procedures established by the
                           Committee, the Participant may be permitted to defer
                           the issuance of Shares deliverable upon the exercise
                           of an Option for a specified period or until a
                           specified date.

                  (e)      ISOs. The Committee may grant Options under the Plan
                           that are intended to be ISOs. Such ISOs shall comply
                           with the requirements of Section 422 of the Code (or
                           any successor section thereto). No ISO may be granted
                           to any Participant who at the time of such grant,
                           owns more than ten percent of the total combined
                           voting power of all classes of stock of the Company
                           or of any Subsidiary, unless (i) the Option Price for
                           such ISO is at least 110% of the Fair Market Value of
                           a Share on the date the ISO is granted and (ii) the
                           date on which such ISO terminates is a date not later
                           than the day preceding the fifth anniversary of the
                           date on which the ISO is granted. Any Participant who
                           disposes of Shares acquired upon the exercise of an
                           ISO either (i) within two years after the date of
                           grant of such ISO or (ii) within one year after the
                           transfer of such Shares to the Participant, shall
                           notify the Company of such disposition and of the
                           amount realized upon such disposition. All Options
                           granted under the Plan are intended to be
                           nonqualified stock options, unless the applicable
                           Award agreement expressly states that the Option is
                           intended to be an ISO. If an Option is intended to be
                           an ISO, and if for any reason such Option (or portion
                           thereof) shall not qualify as an ISO, then, to the
                           extent of such nonqualification, such Option (or
                           portion thereof) shall be regarded as a nonqualified
                           stock option granted under the Plan; provided that
                           such Option (or portion thereof) otherwise complies
                           with the Plan's requirements relating to nonqualified
                           stock options. In no event shall any member of the
                           Committee, the Company or any of its Affiliates (or
                           their respective employees, officers or directors)
                           have any liability to any Participant (or any other
                           person) due to the failure of an Option to qualify
                           for any reason as an ISO.

                  (f)      Attestation. Wherever in this Plan or any agreement
                           evidencing an Award a Participant is permitted to pay
                           the exercise price of an Option or taxes relating to
                           the exercise of an Option by delivering Shares, the
                           Participant may, subject to procedures satisfactory
                           to the Committee, satisfy such delivery requirement
                           by presenting proof of beneficial ownership of such
                           Shares, in which case the Company shall treat the
                           Option as exercised without further payment and/or
                           shall withhold such number of Shares from the Shares
                           acquired by the exercise of the Option, as
                           appropriate.

7.       TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS

                  (a)      Grants. The Committee may grant (i) a Stock
                           Appreciation Right independent of an Option or (ii) a
                           Stock Appreciation Right in connection with an
                           Option, or a portion thereof. A Stock Appreciation
                           Right granted pursuant to clause (ii) of the
                           preceding sentence (A) may be granted at the time the
                           related Option is granted or at any time prior to the
                           exercise or

<PAGE>
                                       8

                           cancellation of the related Option, (B) shall cover
                           the same number of Shares covered by an Option (or
                           such lesser number of Shares as the Committee may
                           determine) and (C) shall be subject to the same terms
                           and conditions as such Option except for such
                           additional limitations as are contemplated by this
                           Section 7 (or such additional limitations as may be
                           included in an Award agreement).

                  (b)      Terms. The exercise price per Share of a Stock
                           Appreciation Right shall be an amount determined by
                           the Committee but in no event shall such amount be
                           less than the Fair Market Value of a Share on the
                           date the Stock Appreciation Right is granted;
                           provided, however, that notwithstanding the foregoing
                           in the case of a Stock Appreciation Right granted in
                           conjunction with an Option, or a portion thereof, the
                           exercise price may not be less than the Option Price
                           of the related Option. Each Stock Appreciation Right
                           granted independent of an Option shall entitle a
                           Participant upon exercise to an amount equal to (i)
                           the excess of (A) the Fair Market Value on the
                           exercise date of one Share over (B) the exercise
                           price per Share, times (ii) the number of Shares
                           covered by the Stock Appreciation Right. Each Stock
                           Appreciation Right granted in conjunction with an
                           Option, or a portion thereof, shall entitle a
                           Participant to surrender to the Company the
                           unexercised Option, or any portion thereof, and to
                           receive from the Company in exchange therefor an
                           amount equal to (i) the excess of (A) the Fair Market
                           Value on the exercise date of one Share over (B) the
                           Option Price per Share, times (ii) the number of
                           Shares covered by the Option, or portion thereof,
                           which is surrendered. Payment shall be made in Shares
                           or in cash, or partly in Shares and partly in cash
                           (any such Shares valued at such Fair Market Value),
                           all as shall be determined by the Committee. Stock
                           Appreciation Rights may be exercised from time to
                           time upon actual receipt by the Company of written
                           notice of exercise stating the number of Shares with
                           respect to which the Stock Appreciation Right is
                           being exercised. The date a notice of exercise is
                           received by the Company shall be the exercise date.
                           No fractional Shares will be issued in payment for
                           Stock Appreciation Rights, but instead cash will be
                           paid for a fraction or, if the Committee should so
                           determine, the number of Shares will be rounded
                           downward to the next whole Share.

                  (c)      Limitations. The Committee may impose, in its
                           discretion, such conditions upon the exercisability
                           or transferability of Stock Appreciation Rights as it
                           may deem fit.

8.       RESTRICTED STOCK

                  (a)      Grant. Subject to the provisions of the Plan, the
                           Committee shall determine the number of Shares of
                           Restricted Stock to be granted to each Participant,
                           the duration of the period during which, and the
                           conditions, if any, under which, the Restricted Stock
                           may be forfeited to the Company, and the other terms
                           and conditions of such Awards; provided that not less
<PAGE>
                                       9

                           than 95% of the Shares of Restricted Stock shall
                           remain subject to forfeiture for at least three years
                           after the date of grant, subject to earlier
                           termination of such potential for forfeiture in whole
                           or in part in the event of a Change in Control or the
                           death, disability or other termination of the
                           Participant's employment.

                  (b)      Transfer Restrictions. Shares of Restricted Stock may
                           not be sold, assigned, transferred, pledged or
                           otherwise encumbered, except as provided in the Plan
                           or the applicable Award agreement. Certificates, or
                           other evidence of ownership, issued in respect of
                           Shares of Restricted Stock shall be registered in the
                           name of the Participant and deposited by such
                           Participant, together with a stock power endorsed in
                           blank, with the Company. After the lapse of the
                           restrictions applicable to such Shares of Restricted
                           Stock, the Company shall deliver such certificates,
                           or other evidence of ownership, to the Participant or
                           the Participant's legal representative.

                  (c)      Dividends. Dividends paid on any Shares of Restricted
                           Stock may be paid directly to the Participant,
                           withheld by the Company subject to vesting of the
                           Restricted Shares pursuant to the terms of the
                           applicable Award agreement, or may be reinvested in
                           additional Shares of Restricted Stock, as determined
                           by the Committee in its sole discretion.

                  (d)      Performance-Based Grants. Notwithstanding anything to
                           the contrary herein, certain Shares of Restricted
                           Stock granted under this Section 8 may, at the
                           discretion of the Committee, be granted in a manner
                           which is intended to be deductible by the Company
                           under Section 162(m) of the Code (or any successor
                           section thereto). The restrictions applicable to such
                           Restricted Stock shall lapse based wholly or
                           partially on the attainment of written performance
                           goals approved by the Committee for a performance
                           period established by the Committee (i) while the
                           outcome for that performance period is substantially
                           uncertain and (ii) no more than 90 days after the
                           commencement of the performance period to which the
                           performance goal relates or, if less, the number of
                           days which is equal to 25 percent of the relevant
                           performance period. The performance goals, which must
                           be objective, shall be based upon one or more of the
                           criteria set forth in Section 9(b) below. The
                           Committee shall determine in its discretion whether,
                           with respect to a performance period, the applicable
                           performance goals have been met with respect to a
                           given Participant and, if they have, shall so certify
                           prior to the release of the restrictions on the
                           Shares.

9.       OTHER STOCK-BASED AWARDS

                  (a)      Generally. The Committee, in its sole discretion, may
                           grant or sell Awards of Shares and Awards that are
                           valued in whole or in part by reference to, or are
                           otherwise based on the Fair Market Value of, Shares
                           ("Other Stock-Based Awards"). Such Other Stock-Based
                           Awards shall be

<PAGE>
                                       10

                           in such form, and dependent on such conditions, as
                           the Committee shall determine, including, without
                           limitation, the right to receive, or vest with
                           respect to, one or more Shares (or the equivalent
                           cash value of such Shares) upon the completion of a
                           specified period of service, the occurrence of an
                           event and/or the attainment of performance
                           objectives. Other Stock-Based Awards may be granted
                           alone or in addition to any other Awards granted
                           under the Plan. Subject to the provisions of the
                           Plan, the Committee shall determine the number of
                           Shares to be awarded to a Participant under (or
                           otherwise related to) such Other Stock-Based Awards;
                           whether such Other Stock-Based Awards shall be
                           settled in cash, Shares or a combination of cash and
                           Shares; and all other terms and conditions of such
                           Awards (including, without limitation, the vesting
                           provisions thereof and provisions ensuring that all
                           Shares so awarded and issued shall be fully paid and
                           non-assessable). The maximum amount of Other
                           Stock-Based Awards that may be granted during a
                           calendar year to any Participant shall be: (x) with
                           respect to Other Stock-Based Awards that are
                           denominated or payable in Shares, 600,000 Shares and
                           (y) with respect to Other Stock-Based Awards that are
                           not denominated or payable in Shares, $10 million.
                           Notwithstanding any other provision, with respect to
                           (i) Other Stock-Based Awards settled in Shares that
                           are subject to time-based vesting, not less than 95%
                           of such Other Stock Based Awards payable in Shares
                           shall vest and become payable at least three years
                           after the date of grant, subject to earlier vesting
                           in whole or in part in the event of a Change in
                           Control or the death, disability or other termination
                           of the Participant's employment, and (ii) Other
                           Stock-Based Awards settled in Shares that are subject
                           to vesting upon the attainment of performance
                           objectives, the minimum performance period shall be
                           one year.

                  (b)      Performance-Based Awards. Notwithstanding anything to
                           the contrary herein, certain Other Stock-Based Awards
                           granted under this Section 9 may be granted in a
                           manner which is intended to be deductible by the
                           Company under Section 162(m) of the Code (or any
                           successor section thereto) ("Performance-Based
                           Awards"). A Participant's Performance-Based Award
                           shall be determined based on the attainment of
                           written performance goals approved by the Committee
                           for a performance period of not less than one year
                           established by the Committee (i) while the outcome
                           for that performance period is substantially
                           uncertain and (ii) no more than 90 days after the
                           commencement of the performance period to which the
                           performance goal relates or, if less, the number of
                           days which is equal to 25 percent of the relevant
                           performance period. The performance goals, which must
                           be objective, shall be based upon one or more of the
                           following criteria: (i) consolidated earnings before
                           or after taxes (including earnings before interest,
                           taxes, depreciation and amortization); (ii) net
                           income; (iii) operating income; (iv) earnings per
                           Share; (v) book value per Share; (vi) return on
                           shareholders' equity; (vii) expense management;
                           (viii) return on investment; (ix) improvements in
                           capital structure; (x) profitability of an
                           identifiable business unit or product; (xi)
<PAGE>
                                       11

                           maintenance or improvement of profit margins; (xii)
                           stock price; (xiii) market share; (xiv) revenues or
                           sales; (xv) costs; (xvi) cash flow; (xvii) working
                           capital and (xviii) return on assets. The foregoing
                           criteria may relate to the Company, one or more of
                           its Affiliates or one or more of its or their
                           divisions or units, or any combination of the
                           foregoing, and may be applied on an absolute basis
                           and/or be relative to one or more peer group
                           companies or indices, or any combination thereof, all
                           as the Committee shall determine. In addition, to the
                           degree consistent with Section 162(m) of the Code (or
                           any successor section thereto), the performance goals
                           may be calculated without regard to extraordinary
                           items. The Committee shall determine whether, with
                           respect to a performance period, the applicable
                           performance goals have been met with respect to a
                           given Participant and, if they have, shall so certify
                           and ascertain the amount of the applicable
                           Performance-Based Award. No Performance-Based Awards
                           will be paid for such performance period until such
                           certification is made by the Committee. The amount of
                           the Performance-Based Award actually paid to a given
                           Participant may be less than the amount determined by
                           the applicable performance goal formula, at the
                           discretion of the Committee. The amount of the
                           Performance-Based Award determined by the Committee
                           for a performance period shall be paid to the
                           Participant at such time as determined by the
                           Committee in its sole discretion after the end of
                           such performance period; provided, however, that a
                           Participant may, if and to the extent permitted by
                           the Committee and consistent with the provisions of
                           Section 162(m) of the Code, elect to defer payment of
                           a Performance-Based Award.

10.      ADJUSTMENTS UPON CERTAIN EVENTS

                  Notwithstanding any other provisions in the Plan to the
contrary, the following provisions shall apply to all Awards granted under the
Plan:

                  (a)      Generally. In the event of any change in the
                           outstanding Shares after the Effective Date by reason
                           of any Share dividend or split, reorganization,
                           recapitalization, merger, consolidation, spin-off,
                           combination, combination or transaction or exchange
                           of Shares or other corporate exchange, or any
                           distribution to shareholders of Shares other than
                           regular cash dividends or any transaction similar to
                           the foregoing, the Committee in its sole discretion
                           and without liability to any person may make such
                           substitution or adjustment, if any, as it deems to be
                           equitable, as to (i) the number or kind of Shares or
                           other securities issued or reserved for issuance
                           pursuant to the Plan or pursuant to outstanding
                           Awards, (ii) the maximum number of Shares for which
                           Awards (including limits established for Restricted
                           Stock or Other Stock-Based Awards) may be granted
                           during a calendar year to any Participant, (iii) the
                           Option Price or exercise price of any Stock
                           Appreciation Right and/or (iv) any other affected
                           terms of such Awards.

<PAGE>
                                       12

                  (b)      Change in Control. In the event of a Change in
                           Control after the Effective Date, the Committee may,
                           but shall not be obligated to, (A) accelerate, vest
                           or cause the restrictions to lapse with respect to,
                           all or any portion of an Award or (B) cancel Awards
                           for fair value (as determined in the sole discretion
                           of the Committee) which, in the case of Options and
                           Stock Appreciation Rights, may equal the excess, if
                           any, of value of the consideration to be paid in the
                           Change in Control transaction to holders of the same
                           number of Shares subject to such Options or Stock
                           Appreciation Rights (or, if no consideration is paid
                           in any such transaction, the Fair Market Value of the
                           Shares subject to such Options or Stock Appreciation
                           Rights) over the aggregate exercise price of such
                           Options or Stock Appreciation Rights or (C) provide
                           for the issuance of substitute Awards that will
                           substantially preserve the otherwise applicable terms
                           of any affected Awards previously granted hereunder
                           as determined by the Committee in its sole discretion
                           or (D) provide that for a period of at least 30 days
                           prior to the Change in Control, such Options shall be
                           exercisable as to all shares subject thereto and that
                           upon the occurrence of the Change in Control, such
                           Options shall terminate and be of no further force
                           and effect.

11.      NO RIGHT TO EMPLOYMENT OR AWARDS

                  The granting of an Award under the Plan shall impose no
obligation on the Company or any Affiliate to continue the Employment of a
Participant and shall not lessen or affect the Company's or Subsidiary's right
to terminate the Employment of such Participant. No Participant or other person
shall have any claim to be granted any Award, and there is no obligation for
uniformity of treatment of Participants, or holders of Awards. The terms and
conditions of Awards and the Committee's determinations and interpretations with
respect thereto need not be the same with respect to each Participant (whether
or not such Participants are similarly situated).

12.      SUCCESSORS AND ASSIGNS

                  The Plan shall be binding on all successors and assigns of the
Company and a Participant, including without limitation, the estate of such
Participant and the executor, administrator or trustee of such estate, or any
receiver or trustee in bankruptcy or representative of the Participant's
creditors.

13.      NONTRANSFERABILITY OF AWARDS

                  Unless otherwise determined by the Committee, an Award shall
not be transferable or assignable by the Participant otherwise than by will or
by the laws of descent and distribution. An Award exercisable after the death of
a Participant may be exercised by the legatees, personal representatives or
distributees of the Participant.

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                                       13

14.      AMENDMENTS OR TERMINATION

                  The Board or the Committee may amend, alter or discontinue the
Plan, but no amendment, alteration or discontinuation shall be made, (a) without
the approval of the shareholders of the Company, if such action would (except as
is provided in Section 10 of the Plan), increase the total number of Shares
reserved for the purposes of the Plan or increase the maximum number of Shares
of Restricted Stock or Other Stock-Based Awards that may be awarded hereunder,
or the maximum number of Shares for which Awards may be granted to any
Participant, (b) without the consent of a Participant, if such action would
diminish any of the rights of the Participant under any Award theretofore
granted to such Participant under the Plan or (c) to Section 5(b), relating to
repricing of Options or Stock Appreciation Rights, to permit such repricing;
provided, however, that the Committee may amend the Plan in such manner as it
deems necessary to permit the granting of Awards meeting the requirements of the
Code or other applicable laws.

15.      INTERNATIONAL PARTICIPANTS

                  With respect to Participants who reside or work outside the
United States of America and who are not (and who are not expected to be)
"covered employees" within the meaning of Section 162(m) of the Code, the
Committee may, in its sole discretion, amend the terms of the Plan or Awards
with respect to such Participants in order to conform such terms with the
requirements of local law or to obtain more favorable tax or other treatment for
a Participant, the Company or an Affiliate.

16.      OTHER BENEFIT PLANS

                  All Awards shall constitute a special incentive payment to the
Participant and shall not be taken into account in computing the amount of
salary or compensation of the Participant for the purpose of determining any
benefits under any pension, retirement, profit-sharing, bonus, life insurance or
other benefit plan of the Company or under any agreement between the Company and
the Participant, unless such plan or agreement specifically provides otherwise.

17.      CHOICE OF LAW

                  The Plan shall be governed by and construed in accordance with
the laws of the State of New York without regard to conflicts of laws, and
except as otherwise provided in the pertinent Award agreement, any and all
disputes between a Participant and the Company or any Affiliate relating to an
Award shall be brought only in a state or federal court of competent
jurisdiction sitting in Manhattan, New York.

18.      EFFECTIVENESS OF THE PLAN

                  The Plan shall be effective as of the Effective Date, subject
to the approval of the shareholders of the Company.

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