Document:

EX-10.1 AMENDMENT NO.1 TO REGISTRATION RIGHTS AGR

EXHIBIT
10.1

EXECUTION COPY

 

AMENDMENT NO. 1

to

REGISTRATION RIGHTS AGREEMENT

between

TIME WARNER INC.

(f/k/a AOL TIME WARNER INC.)

and

TIME WARNER CABLE INC.,

Dated as of May 20, 2008

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	Definitions
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01. General
	 	 	1	 
	SECTION 1.02. Amendment to Section 1.1 of the Agreement
	 	 	1	 
	SECTION 1.03. New Section 1.4
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	General; Securities Subject to this Agreement
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01. Amendment to Section 2.2 of the Agreement
	 	 	3	 
	SECTION 2.02. Amendment to Section 2.3 of the Agreement
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	Demand Registration
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01. Amendment to Section 4.1 of the Agreement
	 	 	4	 
	SECTION 3.02. Amendment to Section 4.3 of the Agreement
	 	 	4	 
	SECTION 3.03. Amendment to Section 4.5 of the Agreement
	 	 	4	 
	SECTION 3.04. Amendment to Section 5.1 of the Agreement
	 	 	4	 
	SECTION 3.05. Amendment to Section 6.1(a) of the Agreement
	 	 	5	 
	SECTION 3.06. Amendment to Section 6.3(b) of the Agreement
	 	 	5	 
	SECTION 3.07. Amendment to Section 6.10 of the Agreement
	 	 	5	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	Miscellaneous
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01. Rights
	 	 	5	 
	SECTION 4.02. Counterparts and Signature
	 	 	6	 
	SECTION 4.03. GOVERNING LAW
	 	 	6	 

-i-

 

 

     AMENDMENT NO. 1 (this “Amendment”), dated as of May 20, 2008,
to REGISTRATION RIGHTS AGREEMENT (the “Agreement”), dated as of
March 31, 2003, between TIME WARNER INC. (f/k/a AOL TIME WARNER INC.), a
Delaware corporation (“AOLTW”), and TIME WARNER CABLE INC., a
Delaware corporation (the “Issuer”).

          WHEREAS concurrently with the execution of this Amendment, in connection with the contemplated
separation of AOLTW and the Issuer, AOLTW, the Issuer, Time Warner Entertainment Company, L.P., TW
NY Cable Holding Inc., Warner Communications Inc., Historic TW Inc. and American Television and
Communications Corporation are entering into a Separation Agreement (the “Separation
Agreement”); and

          WHEREAS AOLTW and the Issuer desire to reflect their agreement with respect to the amendment
of certain provisions of the Agreement.

          NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
acknowledged by this Amendment, AOLTW and the Issuer, for themselves, their successors and assigns,
agree as follows:

ARTICLE I

Definitions

          SECTION 1.01. General. Unless otherwise specified herein, capitalized terms used but
not defined in this Amendment shall have the meanings set forth in the Agreement. References in
the Agreement to “this Agreement” shall be deemed to refer to the Agreement as amended by this
Amendment. Notwithstanding the foregoing, the date of the Agreement, as amended hereby, shall in
all instances remain March 31, 2003, and references to “the date hereof”, “the date of this
Agreement” and “the Effective Date” in the Agreement shall continue to refer to March 31, 2003.

          SECTION 1.02. Amendment to Section 1.1 of the Agreement.

          (a) The definition of “Registrable Securities” in Section 1.1 of the Agreement is hereby
amended and restated in its entirety as follows:

          “‘Registrable Securities’ means each of the following: (a) any and all shares of Common Equity
now or hereafter held by AOLTW or its Affiliates (including those issued or issuable in connection
with the TWNY Exchange or the High Vote-Low Vote Exchange or any other transaction contemplated by
the Separation Agreement) or issued or issuable upon conversion of any convertible security or
exercise of any warrants or options held by AOLTW or its Affiliates, (b) any shares of Common
Equity or any other securities issued or issuable to a Stockholder or any of its Affiliates in
respect of any Registrable Securities by way of a conversion, exchange, replacement, stock dividend
or stock split or other distribution in connection with a combination of shares, recapitalization,
merger, consolidation or other reorganization, spin-off, split-off or

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otherwise and any shares of Common Equity or voting common stock or other securities issuable
upon conversion, exercise or exchange thereof, and (c) all shares of Common Equity or other
securities described in (b) above owned by any Permitted Transferee that were transferred in
accordance with the terms of this Agreement and were Registrable Securities at the time such shares
or securities were transferred to such Permitted Transferee; provided that in the case of each of
clause (a), (b) and (c) above, all such shares of Common Equity (whether now held or issued or
issuable upon conversion of any convertible security or exercise of any warrants or options) or
other securities described in (b) above shall cease to be Registrable Securities upon consummation
of the Distribution.

          (b) The definition of “Initial Public Offering” in Section 1.1 of the Agreement is hereby
amended and restated in its entirety as follows:

          “‘Initial Public Offering’ means the distribution to creditors of ACC of shares of the Common
Equity in accordance with ACC’s plan of reorganization, effective as of February 13, 2007, under
chapter 11 of title 11 of the United States Code.”

          (c) The following definitions are hereby added to Section 1.1 of the Agreement in alphabetical
order:

          “‘ACC’ means Adelphia Communications Corporation.

          ‘Amendment’ has the meaning set forth in the preamble.

          ‘Distribution’ has the meaning set forth in Article I of the Separation Agreement.

          ‘Eligible Holders’ has the meaning set forth in Article I of the Separation Agreement.

          ‘FINRA’ means the Financial Industry Regulatory Authority.

          ‘High Vote-Low Vote Exchange’ has the meaning set forth in Section 2.06(b) of the Separation
Agreement.

          ‘Separation’ has the meaning set forth in Article I of the Separation Agreement.

          ‘Separation Agreement’ has the meaning set forth in the recitals to the Amendment.

          ‘Separation Demand’ has the meaning set forth in Section 4.1(a) of the Agreement.

          ‘TWNY Exchange’ has the meaning set forth thereto in Section 2.03(b) of the Separation
Agreement.”

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          SECTION 1.03. New Section 1.4. Article I of the Agreement is hereby amended by adding
a new Section 1.4 at the end thereof:

          “1.4 Sales and other Dispositions of Securities. For purposes of Articles IV, V and VI of
this Agreement, the terms “sale”, “sell”, “sold”, “selling”, “seller” or similar terms shall be
deemed to include the correlative forms of the terms “disposition”, “dispose of”, “disposed of”,
“disposing of”, “disposing person” or similar terms, as may be appropriate in furtherance of the
Separation. For the avoidance of doubt, “disposition” and its correlative forms shall include a
spin-off, split-off, whether by way of exchange offer or merger/election transaction, or any other
manner by which the Distribution is effected.”

ARTICLE II

General; Securities Subject to this Agreement

          SECTION
2.01. Amendment to Section 2.2 of the Agreement. Section 2.2 of the Agreement
is hereby amended and restated in its entirety as follows:

          “Registrable Securities. As to any particular Registrable Securities, once issued, such
securities shall cease to be Registrable Securities (a) when a Registration Statement with respect
to the sale of such securities shall have become effective under the Securities Act and such
securities shall have been disposed of in accordance with such Registration Statement, (b) when
they shall have been distributed to the public pursuant to Rule 144 (or any successor provision
then in effect) under the Securities Act, (c) when they shall have been otherwise transferred, and,
in accordance with Section 3.1, new certificates for them not bearing a legend restricting further
transfer shall have been delivered, (d) when they shall have become freely transferable without
registration under the Securities Act, (e) when they shall have ceased to be outstanding or (f)
upon the consummation of the Distribution.”

          SECTION 2.02. Amendment to Section 2.3 of the Agreement. Section 2.3 of the Agreement
is hereby amended and restated in its entirety as follows:

          “Holders of Registrable Securities. Each of the following shall be deemed to be a Stockholder:
(a) any Person owning of record Registrable Securities, or holding an option to purchase, or a
security convertible into or exercisable or exchangeable for, Registrable Securities, whether or
not such acquisition or conversion has actually been effected, and (b) with respect to any shares
of Class A Common Stock issued or issuable pursuant to the TWNY Exchange or the High Vote-Low Vote
Exchange, whether held or to be held by AOLTW or its Affiliates or to be transferred to AOLTW
pursuant to the Separation Agreement, AOLTW. If the Issuer receives conflicting instructions,
notices or elections from two or more Persons with respect to the same Registrable Securities, the
Issuer may act upon the basis of the instructions, notice or election received from

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AOLTW. Registrable Securities issuable upon exercise of an option or upon conversion of
another security shall be deemed outstanding for the purposes of this Agreement.”

ARTICLE III

Demand Registration

          SECTION 3.01. Amendment to Section 4.1 of the Agreement. Section 4.1(a) of the
Agreement is hereby amended and restated in its entirety as follows:

          “(a) At any time after the completion of the Initial Public Offering, a Stockholder may make a
written request to the Issuer to register, and the Issuer shall register, on the appropriate form,
under the Securities Act, the number of Registrable Securities stated in such request (a
‘Demand Registration’). Any request by AOLTW pursuant to this Section 4.1(a) may be made
to facilitate the Separation (a ‘Separation Demand’).”

          SECTION 3.02. Amendment to Section 4.3 of the Agreement. Section 4.3 of the Agreement
is hereby amended and restated in its entirety as follows:

          “Underwriting. If the Issuer or the Majority Requesting Stockholders elect, the Issuer shall
use all commercially reasonable efforts to cause the sale of Registrable Securities relating to a
Demand Registration (other than an OTC Hedging Transaction or a registration pursuant to a
Separation Demand) to be in the form of a firm commitment underwritten offering, and the Lead
Underwriter shall be selected in accordance with Section 6.9.”

          SECTION 3.03. Amendment to Section 4.5 of the Agreement. Section 4.5 of the Agreement
is hereby amended and restated in its entirety as follows:

          “Cutback Provisions. All offerings made in respect of Demand Registrations (other than
pursuant to a Separation Demand) shall be subject to the limitations set forth in Section 6.10.”

          SECTION 3.04. Amendment to Section 5.1 of the Agreement. Section 5.1 of the Agreement
is hereby amended and restated in its entirety as follows:

          “Issuer Incidental Registration. At any time after the Closing, if a Stockholder requests a
Demand Registration (other than a Separation Demand) in accordance with Article IV, then the Issuer
shall have the right, subject to the limitations set forth in Section 6.10, to register Issuer
Securities or securities for the account of any stockholder of the Issuer other than the
Stockholders. In connection with any Demand Registration under Article IV involving an
underwritten offering, the Issuer shall not include any securities of the Issuer for the account of
any Person other than the Stockholders unless such Person accepts the terms of the underwritten
offering as agreed upon between the Lead Underwriter and the Stockholders requesting registration.”

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          SECTION 3.05. Amendment to Section 6.1(a) of the Agreement. Section 6.1(a) of the
Agreement is hereby amended and restated in its entirety as follows:

          “(a) the Issuer shall, as expeditiously as practicable, prepare and file with the Commission a
Registration Statement on Form S-3 (or, if the Issuer is not then eligible to use Form S-3, on any
form for which the Issuer then qualifies, which counsel for the Issuer deems appropriate and which
is available for the sale of such Registrable Securities in accordance with the intended method of
distribution thereof), or, if required in connection with a Separation Demand, Form S-4 or any
other form necessary to give effect to the Separation, and use all commercially reasonable efforts
to cause such Registration Statement to become effective as expeditiously as practicable; provided,
however, that (i) before filing a Registration Statement or Prospectus or any amendments or
supplements thereto, the Issuer shall provide Stockholder Counsel and any other Inspector with a
reasonable opportunity to review and comment on such Registration Statement and each Prospectus
included therein (and each amendment or supplement thereto) to be filed with the Commission,
subject to such documents being under the Issuer’s control, and (ii) the Issuer shall notify each
Stockholder, Stockholder Counsel, and each other party participating in such distribution of
Registrable Securities of any stop order issued or threatened by the Commission and take all
commercially reasonable action required to prevent the entry of such stop order or to remove it if
entered;”.

          SECTION 3.06. Amendment to Section 6.3(b) of the Agreement. Section 6.3(b) of the
Agreement is hereby amended by adding at the end thereof the following:

          “This Section 6.3(b) shall not apply to any registration pursuant to a Separation Demand.”

          SECTION 3.07. Amendment to Section 6.10 of the Agreement. Section 6.10 of the
Agreement is hereby amended by adding at the end thereof the following:

          “This Section 6.10 shall not apply to any registration pursuant to a Separation Demand.”

ARTICLE IV

Miscellaneous

          SECTION 4.01. Rights. Except as specifically set forth herein, the Agreement shall
remain unchanged and in full force and effect. The parties acknowledge and agree that there are no
amendments, modifications or waivers in respect of the Agreement other than those specifically set
forth in this Amendment.

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          SECTION 4.02. Counterparts and Signature. This Amendment may be executed in two or
more counterparts, each of which shall be deemed an original but all of which together shall be
considered one and the same agreement and shall become effective when counterparts have been signed
by each of the parties hereto and delivered to the other parties, it being understood that all
parties need not sign the same counterpart. This Amendment may be executed and delivered by
facsimile transmission.

          SECTION 4.03. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ANY CHOICE OR
CONFLICT OF LAWS PROVISION OR RULE (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION)
THAT WOULD CAUSE THE APPLICATION OF LAWS OF ANY JURISDICTIONS OTHER THAN THOSE OF THE STATE OF NEW
YORK.

[Remainder of page intentionally left blank]

-6-

 

          IN WITNESS WHEREOF, the parties have caused this Amendment to be signed by their duly
authorized representatives.

	 	 	 	 	 
	 	TIME WARNER INC.,

 	 
	 	  by  	/s/ John K. Martin, Jr.
 	 
	 	 	Name:  	John K. Martin, Jr. 	 
	 	 	Title:  	Executive Vice President &
Chief
Financial Officer 	 
	 
	 	TIME WARNER CABLE INC.,

 	 
	 	  by  	/s/ Robert D. Marcus
 	 
	 	 	Name:  	Robert D. Marcus 	 
	 	 	Title:  	Senior Executive Vice
President &
Chief Financial
Officer 	 
	 

-7-EX-10.2 AMENDMENT NO. 1 TO REIMBURSEMENT AGREEMENT

EXHIBIT
10.2

EXECUTION COPY

AMENDMENT NO. 1 TO REIMBURSEMENT AGREEMENT

          This AMENDMENT NO. 1 dated May 20, 2008 (this “Amendment No. 1”), made by and among
Time Warner Cable Inc., a Delaware corporation (the “Company”), and Time Warner Inc.
(formerly named AOL Time Warner Inc., “TW”), amends and supplements the Reimbursement
Agreement dated March 31, 2003 (the “Reimbursement Agreement”) by and among the Company,
TW, Warner Communications Inc., a Delaware corporation (“WCI”), American Television and
Communications Corporation, a Delaware corporation (“ATC”), and Time Warner Entertainment
Company, L.P., a Delaware limited partnership (“TWE”). Capitalized terms used but not
defined herein have the meanings assigned to them in the Reimbursement Agreement.

W I T N E S S E T H :

          WHEREAS, Section 6.3 of the Reimbursement Agreement provides that the terms of the
Reimbursement Agreement can be amended by a written instrument signed by both the Company and TW
and without the consent of any other person (other than material amendments to the Reimbursement
Agreement, which also require the approval of a majority of the Independent Directors) and be
binding on each of the Company and TW and all other parties to the Reimbursement Agreement; and

          WHEREAS, the Company and TW desire to amend certain provisions of the Reimbursement Agreement;

          WHEREAS, a majority of the Independent Directors has approved such amendments;

          NOW, THEREFORE, in consideration of the foregoing recitals and mutual agreements set forth
below, the Company and TW agree as follows:

ARTICLE I

AMENDMENTS

          SECTION 1.1 Amendments to Section 1 of the Reimbursement Agreement.

          (a) The following definitions are added to the defined terms included in Section 1:

          “Company Capital Stock” means the Class A Common Stock, par value $0.01 per share, of
the Company or any other class of capital stock of the Company (or any predecessor or successor
class thereof).

          “Company Eligible Restricted Stock Holder” means any officer or other employee of the
Company or a Company Subsidiary who has been issued a grant of restricted stock, RSUs or PSUs by TW
(or a predecessor of TW) pursuant to a Plan. For purposes of the foregoing, a

 

2

Company Eligible Restricted Stock Holder shall also include any former officer or employee of
the Company or a Company Subsidiary who: (i) has been issued restricted stock, RSUs or PSUs by TW
(or a predecessor of TW) pursuant to a Plan and (ii) was last employed by the Company or a Company
Subsidiary and not by TW or a TW Affiliate.

          “Company Restricted Stock Reimbursement Amount” has the meaning set forth in Section
2.2 of this Agreement.

          “Company Subsidiary” means any Person which is consolidated with the Company for
financial reporting purposes.

          “Fair Market Value” of a share of Capital Stock or Company Capital Stock means, with
respect to any given date, (i) if there should be a public market for such stock on such date, the
average of the high and low prices of such stock on the New York Stock Exchange, or, if such stock
is 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 for such stock as quoted on the NASDAQ,
or, if no sale of shares of such stock 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 shares of
such stock have been so reported or quoted shall be used, and (ii) if there should not be a public
market for such stock on such date, the Fair Market Value shall be the value established by TW or
the Company, respectively, in good faith.

          “Plan” means an equity compensation plan.

          “PSUs” means performance stock units.

          “RSUs” means restricted stock units.

          “Separation Date” has the meaning assigned to such term in the Separation Agreement,
dated May 20, 2008, among TW, the Company, TWE, TW NY Cable Holding Inc., WCI, Historic TW Inc. and
ATC.

          “TW Affiliate” means any Person which is consolidated with TW for financial reporting
purposes; provided, however, that for purposes of the Reimbursement Agreement the
Company and the Company Subsidiaries shall not be deemed to be TW Affiliates.

          “TW Affiliate Eligible Option Holder” means any officer or other employee of TW or any
TW Affiliate who has been issued stock options to purchase shares of Company Capital Stock pursuant
to a Plan. For purposes of the foregoing, a TW Affiliate Eligible Option Holder shall also include
any former officer or employee of TW or a TW Affiliate who: (i) has been issued stock options to
purchase shares of Company Capital Stock by the Company pursuant to a Plan and (ii) was last
employed by TW or a TW Affiliate and not by the Company or a Company Subsidiary.

          “TW Affiliate Eligible Restricted Stock Holder” means any officer or other employee of
TW or any TW Affiliate who has been issued a grant of restricted stock, RSUs or

 

3

PSUs by the Company or a Company Subsidiary pursuant to a Plan. For purposes of the foregoing, a TW
Affiliate Eligible Restricted Stock Holder shall also include any former officer or employee of TW
or a TW Affiliate who: (i) has been issued restricted stock, RSUs or PSUs by the Company pursuant
to a Plan and (ii) was last employed by TW or a TW Affiliate and not by the Company or a Company
Subsidiary.

          “TW Option Reimbursement Amount” has the meaning set forth in Section 2.7 of this
Agreement.

          “TW Restricted Stock Reimbursement Amount” has the meaning set forth in Section 2.8 of
this Agreement.

          (b) The following definitions are deleted from the defined terms included in Section 1 of the
Reimbursement Agreement: Closing Price, Subsidiary, TWE Eligible Option Holder, and TWE Option
Reimbursement Amount.

          (c) The following definitions are amended to read as follows:

          “Company Eligible Option Holder” means any officer or other employee of the Company or
a Company Subsidiary who has been issued stock options to purchase shares of Capital Stock pursuant
to a Plan. For purposes of the foregoing, a Company Eligible Option Holder shall also include any
former officer or employee of the Company or a Company Subsidiary who: (i) has been issued stock
options to purchase shares of Capital Stock by TW (or a predecessor of TW) pursuant to a Plan and
(ii) was last employed by the Company or a Company Subsidiary and not by TW or a TW Affiliate.

          “Initial Offering Date” shall mean March 1, 2007, the date that the Company Class A
Stock was first listed and traded on the NYSE.

          “NASDAQ” means the National Association of Securities Dealers Automated Quotation
System (or such market in which prices of Capital Stock or Company Capital Stock, as applicable,
are regularly quoted).

          SECTION 1.2 Amendments to Section 2 of the Reimbursement Agreement.

          (a) The heading of Section 2 is hereby amended to read as follows: “TW Equity Award
Reimbursement Obligations.”

          (b) Section 2.1 of the Reimbursement Agreement with heading “Company Eligible Option
Holders” is hereby amended in its entirety to read as follows:

2.1 Company Eligible Option Holders. Upon the exercise by any Company
Eligible Option Holder of any employee stock option to purchase shares of Capital
Stock, the Company shall promptly (after notice of such exercise is provided by TW
to the Company) pay to TW, for each share of Capital Stock so purchased, an amount
(such amount, the “Company Option Reimbursement 

 

4

Amount”) equal to the excess of (i) the Fair Market Value of a share of such
Capital Stock as of the date of such exercise, over (ii) the exercise price paid by
such Company Eligible Option Holder for such share of Capital Stock.

          (c) Section 2.2 of the Reimbursement Agreement with heading “TWE Eligible Option
Holders” is deleted and is hereby replaced in its entirely to read as follows:

2.2 Company Eligible Restricted Stock Holders. Upon the vesting of any
grant of restricted stock or RSUs or PSUs with respect to Capital Stock held by any
Company Eligible Restricted Stock Holder, the Company shall promptly (after notice
of such vesting is provided by TW to the Company), pay to TW, for each share of
Capital Stock so vested, an amount (such amount, the “Company Restricted Stock
Reimbursement Amount”) equal to the Fair Market Value of a share of such Capital
Stock as of the date of vesting of such restricted shares, RSUs or PSUs.

          (d) Section 2.3 of the Reimbursement Agreement with heading “Assumption of AOLTW
Obligations” is hereby deleted in its entirety.

          (e) Section 2.4 of the Reimbursement Agreement with heading “Consistent Tax Treatment”
is hereby amended to read as follows:

2.4 TW Consistent Tax Treatment. TW agrees and acknowledges that the
Company (or the applicable Company Subsidiary) shall be entitled to claim the
benefit of any federal, state and local income tax deduction with respect to the
Option Reimbursement Amount and the Restricted Stock Reimbursement Amount permitted
to be deducted by the Company (or the applicable Company Subsidiary) in accordance
with applicable law, and TW shall not take any position inconsistent therewith,
unless required by a change in applicable law or a good faith resolution of a
contest. In the event TW takes such an inconsistent position as permitted by the
previous sentence, it shall pay to the Company (or the applicable Company
Subsidiary) any tax benefit actually realized with respect to the Option
Reimbursement Amount or the Restricted Stock Reimbursement Amount, as applicable
(and any tax benefit actually realized as a result of such payment);
provided, however, that subject to the foregoing, the determination
of whether to claim any such benefit, whether by filing an original or amended tax
return or otherwise, shall be made by TW in its discretion, which shall be exercised
reasonably. For purposes of the foregoing, any such benefit shall be deemed
“actually realized” by TW only if and to the extent that the Company and TW shall
have agreed that TW’s liability for taxes is less than its liability for taxes would
have been had it not taken into account any such tax benefit. The Company (or the
applicable Company Subsidiary) shall be responsible for all payroll taxes,
withholding and reporting with respect to income arising upon exercise, vesting or
delivery, as applicable, for any Company Eligible Option Holder or Company Eligible
Restricted Stock Holder, and TW shall provide to the Company any information
necessary for the Company or the applicable Company

 

5

Subsidiary to meet such obligations on a timely basis. Upon exercise, vesting or
delivery, as applicable, TW shall withhold such amounts as applicable for income or
other taxes and such income or other taxes withheld shall be remitted by TW (or its
equity compensation administrator) to the Company (or the applicable Company
Subsidiary) within the time periods required by federal, state and local law and the
Company (or the applicable Company Subsidiary) shall transmit such withholding to
the appropriate taxing authorities.

          (f) TW and the Company acknowledge and agree that Section 2.5 of the Reimbursement Agreement
with heading “Post-Contribution Option Grants” shall have no further force and effect.

          (g) Section 2.6 of the Reimbursement Agreement with heading “Post-IPO Option Grants”
is hereby amended to read as follows:

2.6 Post-IPO Option Grants. In no event shall options to purchase Capital
Stock, restricted stock, RSUs or PSUs be granted by TW to officers or employees of
the Company or any Company Subsidiaries (other than individuals serving as officers
of the Company or a Company Subsidiary but who are employed by TW or a TW Subsidiary
in their principal employment relationship) after the Initial Offering Date.

          (h) Sections 2.7, 2.8, 2.9, 2.10 and 2.11 are hereby added to the Reimbursement Agreement and
shall read as follows:

2.7 TW Affiliate Eligible Option Holders. Upon the exercise by any TW
Affiliate Eligible Option Holder of any employee stock option to purchase shares of
Company Capital Stock, TW shall promptly (after notice of such exercise is provided
by the Company to TW), pay to the Company, for each share of Company Capital Stock
so purchased, an amount (such amount, the “TW Option Reimbursement Amount”)
equal to the excess of (i) the Fair Market Value of a share of such Company Capital
Stock as of the date of such exercise, over (ii) the exercise price paid by such TW
Affiliate Eligible Option Holder for such share of Company Capital Stock.

2.8 TW Affiliate Eligible Restricted Stock Holders. Upon the vesting of any
grant of restricted stock or RSUs or PSUs with respect to Company Capital Stock held
by any TW Affiliate Eligible Restricted Stock Holder, TW shall promptly (after
notice of such vesting is provided by the Company to TW), pay to the Company, for
each share of Company Capital Stock so vested, an amount (such amount, the “TW
Restricted Stock Reimbursement Amount”) equal to the Fair Market Value of a
share of such Company Capital Stock as of the date of vesting of such
restricted shares, RSUs or PSUs.

2.9 Company Consistent Tax Treatment. The Company agrees and acknowledges
that TW (or the applicable TW Affiliate) shall be entitled to claim

 

6

the benefit of any federal, state and local income tax deduction with respect to the
TW Option Reimbursement Amount and the TW Restricted Stock Reimbursement Amount
permitted to be deducted by TW (or the applicable TW Affiliate) in accordance with
applicable law, and the Company shall not take any position inconsistent therewith,
unless required by a change in applicable law or a good faith resolution of a
contest. In the event the Company takes such an inconsistent position as permitted
by the previous sentence, it shall pay to TW (or the applicable TW Affiliate) any
tax benefit actually realized with respect to the TW Option Reimbursement Amount or
the TW Restricted Stock Reimbursement Amount, as applicable (and any tax benefit
actually realized as a result of such payment); provided, however,
that subject to the foregoing, the determination of whether to claim any such
benefit, whether by filing an original or amended tax return or otherwise, shall be
made by the Company in its discretion, which shall be exercised reasonably. For
purposes of the foregoing, any such benefit shall be deemed “actually realized” by
the Company only if and to the extent that the Company and TW shall have agreed that
the Company’s liability for taxes is less than its liability for taxes would have
been had it not taken into account any such tax benefit. TW (or the applicable TW
Affiliate) shall be responsible for all payroll taxes, withholding and reporting
with respect to income arising upon exercise, vesting or delivery, as applicable,
for any TW Affiliate Eligible Option Holder or TW Affiliate Eligible Restricted
Stock Holder, and the Company shall provide to TW any information necessary for TW
or the applicable TW Affiliate to meet such obligations on a timely basis. Upon
exercise, vesting or delivery, as applicable, the Company shall withhold such
amounts as applicable for income or other taxes and such income or other taxes
withheld shall be remitted by the Company (or its equity compensation administrator)
to TW (or the applicable TW Affiliate) within the time periods required by federal,
state and local law and TW (or the applicable TW Affiliate) shall transmit such
withholding to the appropriate taxing authorities.

2.10 Other Equity Awards. TW and the Company agree that in the event that
at any time in the future when the Company is a consolidated subsidiary of TW, TW
shall, pursuant to a Plan, issue to any officer or employee of TW or a TW Affiliate
any type of equity award not expressly covered by this Reimbursement Agreement, or
the Company shall, pursuant to a Plan, issue to any officer or employee of the
Company or a Company Subsidiary any type of equity award not expressly covered by
this Reimbursement Agreement, then TW and the Company shall discuss in good faith
whether to amend the Reimbursement Agreement as may be appropriate to provide for
reimbursement obligations with respect to such equity awards consistent with the
terms hereof.

2.11 Continuation of TW Equity Award Reimbursement Obligations. The
provisions of Section 2 of the Reimbursement Agreement, including Section 2.4 and
2.9, each addressing “Consistent Tax Treatment,” shall remain in full force and
effect upon and subsequent to the Separation Date, and upon and subsequent to the
Separation Date, the Company shall continue to be obligated hereunder

 

7

with respect to any options, restricted stock, RSUs and PSUs held by Company
Eligible Option Holders and Company Eligible Restricted Stock Holders, and TW shall
continue to be obligated hereunder with respect to any options, restricted stock,
RSUs and PSUs held by TW Affiliate Eligible Option Holders and TW Affiliate Eligible
Restricted Stock Holders.

          SECTION 1.3 Amendments to Section 6 of the Reimbursement Agreement.

          (a) Section 6.1 with heading “Notices” is amended in its entirety to read as follows:

6.1 Notices. All notices, demands or other communications provided for or
permitted hereunder shall be made in writing and shall be by registered or certified
first class mail, return receipt requested, telecopier, courier service or personal
delivery:

	 	 	 	 	 	 	 
	 	 	(a)	 	if to the Company:
	 
	 	 	 	 	 	 
	 	 	 	 	Time Warner Cable Inc.
	 	 	 	 	One Time Warner Center
	 	 	 	 	North Tower
	 	 	 	 	New York, New York 10019
	 

	 	 	 	Telecopy:
	 	(704) 973-6201
	 

	 	 	 	Attention:
	 	Executive Vice President, General 
	 

	 	 	 	 	 	Counsel and Secretary
	 
	 	 	 	 	 	 
	 	 	(b)	 	if to TW:
	 
	 	 	 	 	 	 
	 	 	 	 	Time Warner Inc.
	 	 	 	 	One Time Warner Center
	 	 	 	 	New York, New York 10019
	 

	 	 	 	Telecopy:
	 	(212) 258-3172
	 

	 	 	 	Attention:
	 	Executive Vice President and General
	 

	 	 	 	 	 	Counsel

or such other address or facsimile number as such party hereto may hereafter specify
for such purpose by notice to the other parties hereto. All such notices, requests
and other communications shall be deemed received on the date of receipt by the
recipient thereof if received prior to 5 p.m. on a Business Day, in the place of
receipt. Otherwise, any such notice, request or communication shall be deemed not to
have been received until the next succeeding Business Day in the place of receipt.

 

8

ARTICLE II

MISCELLANEOUS

          SECTION 3.1. Governing Law. This Amendment No. 1 shall be construed, interpreted and
enforced pursuant to the laws of the State of New York.

          SECTION 3.2. Counterparts. This Amendment No. 1 may be executed in any number of
counterparts, each of which shall be an original, but all of which together shall constitute one
instrument.

          SECTION 3.3. No Other Amendments; Entire Agreement. Except as so modified by this
Amendment No. 1, the terms and conditions of the Reimbursement Agreement are hereby ratified and
confirmed and shall remain in full force and effect. All references in the Reimbursement Agreement
to “this Agreement” shall be read as references to the Reimbursement Agreement, as amended by this
Amendment No. 1. This Amendment No. 1, together with the Reimbursement Agreement (together with
all exhibits thereto), constitute the entire agreement between the parties with respect to the
subject matter hereof and supersedes all other agreements and understandings, both oral and
written, among the parties with respect to such subject matter.

          SECTION 3.4. Effective Date. This Amendment No. 1 shall be effective as of April 1,
2007.

[Remainder of page intentionally left blank]

 

9

          IN WITNESS WHEREOF, the Company and TW have executed this Amendment No. 1 as of the date first
written above.

	 	 	 	 	 
	 	TIME WARNER INC.,

 	 
	 	  by  	/s/ John K. Martin, Jr.
 	 
	 	 	Name:  	John K. Martin, Jr. 	 
	 	 	Title:  	Executive Vice President &
Chief
Financial Officer 	 
	 
	 	TIME WARNER CABLE INC.,

 	 
	 	  by  	/s/ Robert D. Marcus
 	 
	 	 	Name:  	Robert D. Marcus 	 
	 	 	Title:  	Senior Executive Vice President &

Chief Financial Officer

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