Document:

EX-10.36 EMPLOYMENT AGREEMENT/THOMAS G. BAXTER

 

Exhibit 10.36

     EMPLOYMENT AGREEMENT made as of 10/31/01, effective as of November 1, 2001 (the
“Effective Date”), between TIME WARNER CABLE (the “Company”), a division of Time Warner
Entertainment Company, L.P., a Delaware limited partnership, and TOM BAXTER.

     You and the Company desire to set forth the terms and conditions of your employment by the
Company and agree as follows:

     1. Term of Employment. Your “term of employment” as this phrase is used throughout
this Agreement, shall be for the period beginning on the Effective Date and ending on October 31,
2006 (the “Term Date”), subject, however, to earlier termination as set forth in this Agreement.

     2. Employment. During the term of employment, you shall serve as President of the
Company, or in such other position as the Company may determine and you shall have the authority,
functions, duties, powers and responsibilities normally associated with such position and such
additional authority, functions, duties, powers and responsibilities as may be assigned to you from
time to time by the Company consistent with your senior position with the Company. During the term
of employment, (i) your services shall be rendered on a substantially full-time, exclusive basis
and you will apply on a full-time basis all of your skill and experience to the performance of your
duties, (ii) you shall report to the Chief Operating Officer & Vice Chairman of the Company, and
(iv) you shall have no other employment and, without the prior written consent of the Chief
Operating Officer & Vice Chairman of the Company, no outside business activities which require the
devotion of substantial amounts of your time, and (iii) the place for the performance of your
services shall be the principal executive offices of the Company in Stamford, Connecticut, subject
to such reasonable travel as may be required in the performance of your duties. The foregoing
shall be subject to the Company’s written policies, as in effect from time to time, regarding
vacations, holidays, illness and the like.

     3. Compensation.

          3.1 Base Salary. The Company shall pay you a base salary at the rate of not less
than $500,000 per annum during the term of employment (“Base Salary”). The Company may increase, but not decrease, your Base Salary during the term of
employment. Base Salary shall be paid in accordance with the Company’s customary payroll
practices.

 

 

          3.2 Bonus. In addition to Base Salary, the Company typically pays its executives an
annual cash bonus (“Bonus”). Although your Bonus is fully discretionary, your target annual Bonus
as a percentage of Base Salary is 150%, pro rated with respect to partial years. Each year, the
Company’s performance and your personal performance will be considered in the context of your
executive duties and any individual goals set for you, and your actual Bonus will be determined.
Although as a general matter the Company expects to pay bonuses at the target level in cases of
satisfactory individual performance, it does not commit to do so, and your Bonus may be negatively
affected by the exercise of the Company’s discretion or by overall Company performance.

          3.3 Sign-On Bonus. In consideration for your signing this agreement, you shall
receive, within 14 days of your signing, a bonus of $100,000 (“Sign-on Bonus”).

          3.4 Stock Options. Subject to your execution of this Agreement, you will be granted a
new hire option to purchase 250,000 shares of Common Stock of AOL Time Warner Inc. following
commencement of your employment. Thereafter, commencing in 2003, at the Company’s discretion, you
will be eligible to receive annual grants of stock options, although the Company does not commit to
do so. Each such stock option grant shall be at an exercise price equal to the fair market value
of the Common Stock on the date of grant and shall be reflected in a separate Stock Option
Agreement in accordance with the Company’s customary practices.

          3.5 Indemnification. You shall be entitled throughout the term of employment (and
after the end of the term of employment, to the extent relating to service during the term of
employment) to the benefit of the indemnification provisions contained on the date hereof in the
Certificate of Incorporation and By-laws of AOL Time Warner Inc. and the Partnership Agreement of
Time Warner Entertainment Company, L.P. (whichever is the greater extent of indemnification) (not
including any amendments or additions after the date hereof that limit or narrow, but including any
that add to or broaden, the protection afforded to you by those provisions).

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     4. Termination.

          4.1 Termination for Cause. The Company may terminate the term of employment and
all of the Company’s obligations under this Agreement, other than its obligations set forth below
in this Section 4.1, for “cause”. Termination by the Company for “cause” shall mean termination
because of (a) your conviction (treating a nolo contendere plea as a conviction) of a felony
(whether or not any right to appeal has been or may be exercised), (b) willful refusal without
proper cause to perform your obligations under this Agreement, (c) fraud, embezzlement or
misappropriation or (d) because of your breach of any of the covenants provided for in Section 9.
Such termination shall be effected by written notice thereof delivered by the Company to you and
shall be effective as of the date of such notice; provided, however, that if (i) such termination
is because of your willful refusal without proper cause to perform any one or more of your
obligations under this Agreement, (ii) such notice is the first such notice of termination for any
reason delivered by the Company to you under this Section 4.1, and (iii) within 15 days following
the date of such notice you shall cease your refusal and shall use your best efforts to perform
such obligations, the termination shall not be effective.

          In the event of termination by the Company for cause, without prejudice to any other rights or
remedies that the Company may have at law or in equity, the Company shall have no further
obligation to you other than (i) to pay Base Salary through the effective date of termination, (ii)
to pay any Bonus for any year prior to the year in which such termination occurs that has been
determined but not yet paid as of the date of such termination, and (iii) with respect to any
rights you have pursuant to any insurance or other benefit plans or arrangements of the Company.
You hereby disclaim any right to receive a pro rata portion of any Bonus with respect to the year
in which such termination occurs.

          4.2 Termination by You for Material Breach by the Company and Termination by the Company
Without Cause. Unless previously terminated pursuant to any other provision of this Agreement
and unless a Disability Period shall be in effect, you shall have the right, exercisable by written
notice to the Company, to terminate the term of employment effective 15 days after the giving of
such notice, if, at the time of the giving of such notice, the Company is in material breach of its
obligations under this Agreement; provided, however, that, with the exception of clause (i) below,
this Agreement shall not so terminate if such notice is the first such notice of termination
delivered by you pursuant to

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this Section 4.2 and within such 15-day period the Company shall have
cured all such material breaches. A material breach by the Company shall include, but not be
limited to, (i) the Company violating Section 2 with respect to your title, duties or place of
employment, or (ii) the Company failing to cause any successor to all or substantially all of the
business and assets of the Company expressly to assume the obligations of the Company under this
Agreement.

          The Company shall have the right, exercisable by written notice to you, to terminate your
employment under this Agreement without cause, which notice shall specify the effective date of
such termination.

               4.2.1 After the effective date of a termination pursuant to this Section 4.2 (a “termination
without cause”), you shall receive Base Salary and a pro rata portion of your Average Annual Bonus
(as defined below) through the effective date of termination. Your Average Annual Bonus shall be
equal to the average of the regular annual bonus amounts (excluding the amount of any special or
spot bonuses) in respect of the two calendar years during the most recent five calendar years for
which the annual bonus received by you from the Company was the greatest; provided, however, if the
Company has previously paid you no annual Bonus, then your Average Annual Bonus shall equal your
target Bonus and if the Company has previously paid you one annual Bonus, then your Average Annual
Bonus shall equal the average of such Bonus and your target Bonus.

               4.2.2 After the effective date of a termination without cause, you shall remain an employee of
the Company for a period ending on the date (the “Severance Term Date”) which is the later of (i)
the Term Date and (ii) the date which is twelve months after the effective date of such termination
and during such period you shall be entitled to receive, whether or not you become disabled during
such period but subject to Section 6, (a) Base Salary at an annual rate equal to your Base Salary
in effect immediately prior to the notice of termination, and (b) an annual Bonus in respect of
each calendar year or portion thereof (in which case a pro rata portion of such Bonus will be
payable) during such period equal to your Average Annual Bonus. Except as provided in the second
succeeding sentence, if you accept other full-time employment during such period or notify the
Company in writing of your intention to terminate your status as an employee during such period,
you shall cease to be an employee of the Company effective upon the commencement of such other
employment or the effective date of such

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termination as specified by you in such notice, whichever
is applicable, and you shall be entitled to receive, as severance, a lump sum payment within 30
days after such commencement or such effective date, discounted as provided in the immediately
following sentence, equal to the balance of the payments you would have received pursuant to this
Section 4.2.2 had you remained on the Company’s payroll. That lump sum shall be discounted to
present value as of the date of payment from the times at which such amounts would otherwise have
become payable absent such commencement or termination at an annual discount rate for the relevant
periods equal to 120% of the “applicable Federal rate” (within the meaning of Section 1274(d) of
the Internal Revenue Code of 1986, as amended (the “Code”), in effect on the date of such
commencement or termination, compounded semi-annually. Notwithstanding the foregoing, if you
accept full-time employment with any affiliate of the Company, then the payments provided for in
this Section 4.2.2 shall immediately cease and you shall not be entitled to any lump sum payment.
For purposes of this Agreement, the term “affiliate” shall mean any entity which, directly or
indirectly, controls, is controlled by, or is under common control with, the Company.

          4.3 After the Term Date. If at the Term Date, the term of employment shall not
have been previously terminated pursuant to the provisions of this Agreement, no Disability Period
is then in effect and the parties shall not have agreed to an extension or renewal of this
Agreement or on the terms of a new employment agreement, then the term of employment shall continue
on a month-to-month basis and you shall continue to be employed by the Company pursuant to the
terms of this Agreement. You may terminate the term of employment under this Agreement on 60 days
written notice delivered to the Company (which notice may be delivered by you at any time on or
after the date which is 60 days prior to the Term Date). The Company may terminate the term of
employment on or after the Term Date at any time upon written notice to you. The Company’s written
notice of termination will specify the effective date of such termination. If the Company shall
terminate the term of employment on or after the Term Date for any reason (other than for cause as
defined in Section 4.1, in which case Section 4.1 shall apply), which the Company shall have the
right to do so long as no Disability Date (as defined in Section 5) has occurred prior to the
delivery by the Company of written notice of termination, then such termination shall be deemed for
all purposes of this Agreement to be a “termination without cause” under Section 4.2 and the
provisions of Sections 4.2.1 and 4.2.2 shall apply.

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          4.4 Release. A condition precedent to the Company’s obligation to make the
payments associated with a termination without cause shall be your execution and delivery of a
release in the form attached hereto as Annex A. If you shall fail to execute and deliver such
release, or if you revoke such release as provided therein, then in lieu of the payments provided
for herein, you shall receive a severance payment determined in accordance with the Company’s
policies relating to notice and severance.

          4.5 Mitigation. In the event of a termination without cause under this Agreement,
you shall not be required to seek other employment in order to mitigate your damages hereunder
unless Section 280G of the Code would apply to any payments to you by the Company and your failure
to mitigate would result in the Company losing tax deductions to which it would otherwise have been
entitled. In such an event, you will engage in whatsoever mitigation is necessary to preserve the
Company’s tax deductions. With respect to the preceding sentences, any payments or rights to which
you are entitled by reason of the termination of employment without cause shall be considered as
damages hereunder. Any obligation to mitigate your damages pursuant to this Section 4.6 shall not
be a defense or offset to the Company’s obligation to pay you in full the amounts provided in this
Agreement upon the occurrence of a termination without cause, at the time provided herein, or the
timely and full performance of any of the Company’s other obligations under this Agreement.

          4.6 Payments. So long as you remain on the payroll of the Company or any affiliate
of the Company, payments of Base Salary and Bonus required to be made after a termination without
cause shall be made at the same times as similar payments are made to other senior executives of
the Company.

     5. Disability.

          5.1 Disability Payments. If during the term of employment and prior to the
delivery of any notice of termination without cause, you become physically or mentally disabled,
whether totally or partially, so that you are prevented from performing your usual duties for a
period of six consecutive months, or for shorter periods aggregating six months in any twelve-month
period, the Company shall, nevertheless, continue to pay your full compensation through the last
day of the sixth consecutive month of disability or the date on which the shorter periods of
disability shall have equaled a total of six months in any twelve-month period (such last day or
date being referred to herein as the

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“Disability Date”). If you have not resumed your usual duties
on or prior to the Disability Date, the Company shall pay you a pro rata Bonus (based on your
Average Annual Bonus) for the year in which the Disability Date occurs and thereafter shall pay you
disability benefits for the period ending on the later of (i) the Term Date or (ii) the date which
is twelve months after the Disability Date (in the case of either (i) or (ii), the “Disability
Period”), in an annual amount equal to 75% of (a) your Base Salary at the time you become disabled
and (b) the Average Annual Bonus.

          5.2 Recovery from Disability. If during the Disability Period you shall fully
recover from your disability, the Company shall have the right (exercisable within 60 days after
notice from you of such recovery), but not the obligation, to restore you to full-time service at
full compensation. If the Company elects to restore you to full-time service, then this Agreement
shall continue in full force and effect in all respects and the Term Date shall not be extended by
virtue of the occurrence of the Disability Period. If the Company elects not to restore you to
full-time service, you shall be entitled to obtain other employment, subject, however, to the
following: (i) you shall perform advisory services during any balance of the Disability Period;
and (ii) you shall comply with the provisions of Sections 9 and 10 during the Disability Period.
The advisory services referred to in clause (i) of the immediately preceding sentence shall consist
of rendering advice concerning strategic matters as requested by the Company, but you shall not be
required to devote more than five days (up to eight hours per day) each month to such services,
which shall be performed at a time and place mutually convenient to both parties. Any income from
such other employment shall not be applied to reduce the Company’s obligations under this
Agreement.

          5.3 Other Disability Provisions. The Company shall be entitled to deduct from all
payments to be made to you during the Disability Period pursuant to this Section 5 an amount equal
to all disability payments received by you during the Disability Period from Worker’s Compensation,
Social Security and disability insurance policies maintained by the Company; provided, however,
that for so long as, and to the extent that, proceeds paid to you from such disability insurance
policies are not includible in your income for federal income tax purposes, the Company’s deduction
with respect to such payments shall be equal to the product of (i) such payments and (ii) a
fraction, the numerator of which is one and the denominator of which is one less the maximum
marginal rate of federal income taxes applicable to individuals at the time of receipt of such
payments. All payments made under this Section 5 after the Disability Date are

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intended to be
disability payments, regardless of the manner in which they are computed. Except as otherwise
provided in this Section 5, the term of employment shall continue during the Disability Period and
you shall be entitled to all of the rights and benefits provided for in this Agreement, except that
Sections 4.2 and 4.3 shall not apply during the Disability Period and unless the Company has
restored you to full-time service at full compensation prior to the end of the Disability Period,
the term of employment shall end and you shall cease to be an employee of the Company at the end of
the Disability Period and shall not be entitled to notice and severance or to receive or be paid
for any accrued vacation time or unused sabbatical.

     6. Death. If you die during the term of employment, this Agreement and all
obligations of the Company to make any payments hereunder shall terminate except that your estate
(or a designated beneficiary) shall be entitled to receive Base Salary to the last day of the month
in which your death occurs and Bonus compensation (at the time bonuses are normally paid) based on
the Average Annual Bonus, but prorated according to the number of whole or partial months you were
employed by the Company in such calendar year.

     7. Other Benefits.

          7.1 General Availability. To the extent that (a) you are eligible under the
general provisions thereof (including without limitation, any plan provision providing for
participation to be limited to persons who were employees of the company or certain of its
subsidiaries prior to a specific point in time) and (b) the Company maintains such plan or program
for the benefit of its executives, during the term of employment and so long as you are an employee
of the Company, you shall be eligible to participate in any savings or similar plan or program and
in any group life insurance, hospitalization, medical, dental, accident, disability or similar plan
or program of the Company now existing or established hereafter.

          7.2 Benefits After a Termination or Disability. During the period you remain on
the payroll of the Company after a termination without cause or during the Disability Period, you
shall continue to be eligible to participate in the benefit plans and to receive the benefits
required to be provided to you under this Agreement to the extent such benefits are maintained in
effect by the Company for its executives; provided, however, you shall not be entitled to any
additional awards or grants under any stock option,

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restricted stock or other stock based incentive
plan. At the time you leave the payroll of the Company, your rights to benefits and payments under
any benefit plans or any insurance or other death benefit plans or arrangements of the Company or
under any stock option, restricted stock, stock appreciation right, bonus unit, management
incentive or other plan of the Company shall be determined in accordance with the terms and
provisions of such plans and any agreements under which such stock options, restricted stock or
other awards were granted. However, notwithstanding the foregoing or any more restrictive
provisions of any such plan or agreement, if your employment with the Company is terminated as a
result of a termination pursuant to Section 4.2, then, except if you shall otherwise qualify for
retirement under the terms of the applicable stock option agreement, (i) all stock options granted
to you by the Company prior to a termination pursuant to Section 4.2 shall vest and become
immediately exercisable upon the effective date of such termination, (ii) all your vested options
shall remain exercisable while you are on the payroll of the Company and for a period of three
years after the date you leave the payroll of the Company (but not beyond the term of such
options), and (iii) the Company shall not be permitted to determine that your employment was
terminated for “unsatisfactory performance” within the meaning of any stock option agreement
between you and the Company.

          7.3 Payments in Lieu of Other Benefits. In the event the term of employment and
your employment with the Company is terminated pursuant to any section of this Agreement, you shall
not be entitled to notice and severance under the Company’s general employee policies or to be paid
for any accrued vacation time or unused sabbatical, the payments provided for in such sections
being in lieu thereof.

     8. Protection of Confidential Information; Non-Compete.

          8.1 Confidentiality Covenant. You acknowledge that your employment by the Company
will, throughout the term of employment, bring you into close contact with many confidential
affairs of the Company and its affiliates, including information about costs, profits, markets,
sales, products, key personnel, pricing policies, operational methods, technical processes and
other business affairs and methods and other information not readily available to the public, and
plans for future development. You further acknowledge that the services to be performed under this
Agreement are of a special, unique, unusual, extraordinary and intellectual character. You further
acknowledge that the business of the Company and its affiliates is international in scope,

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that its
products and services are marketed throughout the world, that the Company and its affiliates
compete in nearly all of its business activities with other entities that are or could be located
in nearly any part of the world and that the nature of your services, position and expertise are
such that you are capable of competing with the Company and its affiliates from nearly any location
in the world. In recognition of the foregoing, you covenant and agree:

               8.1.1 You shall keep secret all confidential matters of the Company and its affiliates and
shall not disclose such matters to anyone outside of the Company and its affiliates, or to anyone
inside the Company and its affiliates who does not have a need to know or use such information, and
shall not use such information for personal benefit or the benefit of a third party, either during
or after the term of employment, except with the Company’s written consent, provided that (i) you
shall have no such obligation to the extent such matters are or become publicly known other than as
a result of your breach of your obligations hereunder and (ii) you may, after giving prior notice
to the Company to the extent practicable under the circumstances, disclose such matters to the
extent required by applicable laws or governmental regulations or judicial or regulatory process;

               8.1.2 You shall deliver promptly to the Company on termination of your employment, or at any
other time the Company may so request, all memoranda, notes, records, reports and other documents
(and all copies thereof) relating to the Company’s and its affiliates’ businesses, which you
obtained while employed by, or otherwise serving or acting on behalf of, the Company and which you
may then possess or have under your control; and

               8.1.3 If the term of employment is terminated pursuant to Section 4, for a period of one
year after such termination, without the prior written consent of the Company, you shall not
employ, and shall not cause any entity of which you are an affiliate to employ, any person who was
a full-time employee of the Company at the date of such termination or within six months prior
thereto but such prohibition shall not apply to your secretary or executive assistant or to any
other employee eligible to receive overtime pay.

          8.2 Non-Compete. During the term of employment and through the later of (i) the
Term Date, (ii) the date you leave the payroll of the Company, and (iii)

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twelve months after the
effective date of any termination of the term of employment pursuant to Section 4, you shall not,
directly or indirectly, without the prior written consent of the Chief Executive Officer of the
Company, render any services to, or act in any capacity for, any Competitive Entity, or acquire any
interest of any type in any Competitive Entity; provided, however, that the foregoing shall not be
deemed to prohibit you from acquiring, (a) solely as an investment and through market purchases,
securities of any Competitive Entity which are registered under Section 12(b) or 12(g) of the
Securities Exchange Act of 1934 and which are publicly traded, so long as you are not part of any
control group of such Competitive Entity and such securities, including converted securities, do
not constitute more than one percent (1%) of the outstanding voting power of that entity and (b)
securities of any Competitive Entity that are not publicly traded, so long as you are not part of
any control group of such Competitive Entity and such securities, including converted securities,
do not constitute more than three percent (3%) of the outstanding voting power of that entity. For
purposes of the foregoing, the following shall be deemed to be a Competitive Entity: (A) any entity
which is engaged in the United States, either directly or indirectly, in the ownership, operation
or management of (i) any cable television system, open video system, direct broadcast system (DBS),
SMATV system, pay-per-view system, multi-point distribution system (MDS or MMDS) or other
multichannel television programming system (collectively “Systems”) in the United States; or (ii)
any business of providing any local residential telecommunications, or any Internet access or any
other transport or network services for Internet Protocol based information; and (B) any federal,
state or local authority empowered to grant, renew, modify or amend, or review the grant, renewal,
modification or amendment of, or the regulation of, franchises to operate any System.
Provided, however, that “Competitive Entity” shall not mean any cable television
system operator which, at all times during the relevant period, has less than 500,000 subscribers
and does not serve any area which is also served by a cable television system owned, operated or
managed by the Company or its affiliates.

     9. Ownership of Work Product. You acknowledge that during the term of employment,
you may conceive of, discover, invent or create inventions, improvements, new contributions,
literary property, material, ideas and discoveries, whether patentable or copyrightable or not (all
of the foregoing being collectively referred to herein as “Work Product”), and that various
business opportunities shall be presented to you by reason of your employment by the Company. You
acknowledge that all of the foregoing shall be owned by and belong exclusively to the Company and
that you shall have no personal

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interest therein, provided that they are either related in any
manner to the business (commercial or experimental) of the Company, or are, in the case of Work
Product, conceived or made on the Company’s time or with the use of the Company’s facilities or
materials, or, in the case of business opportunities, are presented to you for the possible
interest or participation of the Company. You shall (i) promptly disclose any such Work Product
and business opportunities to the Company; (ii) assign to the Company, upon request and without
additional compensation, the entire rights to such Work Product and business opportunities; (iii)
sign all papers necessary to carry out the foregoing; and (iv) give testimony in support of your
inventorship or creation in any appropriate case. You agree that you will not assert any rights to
any Work Product or business opportunity as having been made or acquired by you prior to the date
of this Agreement except for Work Product or business opportunities, if any, disclosed to and
acknowledged by the Company in writing prior to the date hereof.

     10. Notices. All notices, requests, consents and other communications required or
permitted to be given under this Agreement shall be effective only if given in writing and shall be
deemed to have been duly given if delivered personally or sent by a nationally recognized overnight
delivery service, or mailed first-class, postage prepaid, by registered or certified mail, as
follows (or to such other or additional address as either party shall designate by notice in
writing to the other in accordance herewith):

          10.1 If to the Company:

Time Warner Cable

290 Harbor Drive

Stamford, CT 06902

Attention: General Counsel

          10.2 If to you, to your residence address set forth on the records of the Company.

     11. General.

          11.1 Governing Law. This Agreement shall be governed by and construed and enforced
in accordance with the substantive laws of the State of Connecticut applicable to agreements made
and to be performed entirely in Connecticut.

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          11.2 Captions. The section headings contained herein are for reference purposes
only and shall not in any way affect the meaning or interpretation of this Agreement.

          11.3 Entire Agreement. This Agreement, including Annex A, sets forth the entire
agreement and understanding of the parties relating to the subject matter of this Agreement and
supersedes all prior agreements, arrangements and understandings, written or oral, between the
parties.

          11.4 No Other Representations. No representation, promise or inducement has been
made by either party that is not embodied in this Agreement, and neither party shall be bound by or
be liable for any alleged representation, promise or inducement not so set forth.

          11.5 Assignability. This Agreement and your rights and obligations hereunder may
not be assigned by you and except as specifically contemplated in this Agreement, neither you, your
legal representative nor any beneficiary designated by you shall have any right, without the prior
written consent of the Company, to assign, transfer, pledge, hypothecate, anticipate or commute to
any person or entity any payment due in the future pursuant to any provision of this Agreement, and
any attempt to do so shall be void and shall not be recognized by the Company. The Company shall
assign its rights together with its obligations hereunder in connection with any sale, transfer or
other disposition of all or substantially all of the Company’s business and assets, whether by
merger, purchase of stock or assets or otherwise, as the case may be. Upon any such assignment, the
Company shall cause any such successor expressly to assume such obligations, and such rights and
obligations shall inure to and be binding upon any such successor.

          11.6 Amendments; Waivers. This Agreement may be amended, modified, superseded,
cancelled, renewed or extended and the terms or covenants hereof may be waived only by written
instrument executed by both of the parties hereto, or in the case of a waiver, by the party waiving
compliance. The failure of either party at any time or times to require performance of any
provision hereof shall in no manner affect such party’s right at a later time to enforce the same.
No waiver by either party of the breach of any term or covenant contained in this Agreement, in any
one or more instances, shall be

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deemed to be, or construed as, a further or continuing waiver of
any such breach, or a waiver of the breach of any other term or covenant contained in this
Agreement.

          11.7 Specific Remedy. In addition to such other rights and remedies as the Company
may have at equity or in law with respect to any breach of this Agreement, if you commit a material
breach of any of the provisions of Sections 8.1, 8.2, or 9, the Company shall have the right and
remedy to have such provisions specifically enforced by any court having equity jurisdiction, it
being acknowledged and agreed that any such breach or threatened breach will cause irreparable
injury to the Company.

          11.8 Resolution of Disputes. Except as provided in the preceding Section 11.7, any
dispute or controversy arising with respect to this Agreement and your employment hereunder
(whether based on contract or tort or upon any federal, state or local statute, including but not
limited to claims asserted under the Age Discrimination in Employment Act, Title VII of the Civil
Rights Act of 1964, as amended, any state Fair Employment Practices Act and/or the Americans with
Disability Act) shall, at the election of either you or the Company, be submitted to JAMS/ENDISPUTE
for resolution in arbitration in accordance with the rules and procedures of JAMS/ENDISPUTE.
Either party shall make such election by delivering written notice thereof to the other party at
any time (but not later than 45 days after such party receives notice of the commencement of any
administrative or regulatory proceeding or the filing of any lawsuit relating to any such dispute
or controversy) and thereupon any such dispute or controversy shall be resolved only in accordance
with the provisions of this Section 11.8. Any such proceedings shall take place in Stamford, CT
before a single arbitrator (rather than a panel of arbitrators), pursuant to any streamlined or
expedited (rather than a comprehensive) arbitration process, before a non-judicial (rather than a
judicial) arbitrator, and in accordance with an arbitration process which, in the judgment of such
arbitrator, shall have the effect of reasonably limiting or reducing the cost of such arbitration.
The resolution of any such dispute or controversy by the arbitrator appointed in accordance with
the procedures of JAMS/ENDISPUTE shall be final and binding. Judgment upon the award rendered by
such arbitrator may be entered in any court having jurisdiction thereof, and the parties consent to
the jurisdiction of the Connecticut courts for this purpose. If at the time any dispute or
controversy arises with respect to this Agreement, JAMS/ENDISPUTE is not in business or is no
longer providing arbitration services, then the American Arbitration Association shall be
substituted for JAMS/ENDISPUTE for the purposes of the foregoing provisions of this Section 11.8.
If you shall be the prevailing party in such arbitration, the

14

 

Company shall promptly pay, upon your
demand, all legal fees, court costs and other costs and expenses incurred by you in any legal
action seeking to enforce the award in any court.

          11.9 Beneficiaries. Whenever this Agreement provides for any payment to your
estate, such payment may be made instead to such beneficiary or beneficiaries as you may designate
by written notice to the Company. You shall have the right to revoke any such designation and to
redesignate a beneficiary or beneficiaries by written notice to the Company (and to any applicable
insurance company) to such effect.

          11.10 No Conflict. You represent and warrant to the Company that this Agreement is
legal, valid and binding upon you and the execution of this Agreement and the performance of your
obligations hereunder does not and will not constitute a breach of, or conflict with the terms or
provisions of, any agreement or understanding to which you are a party (including, without
limitation, any other employment agreement). The Company represents and warrants to you that this
Agreement is legal, valid and binding upon the Company and the execution of this Agreement and the
performance of the Company’s obligations hereunder does not and will not constitute a breach of, or
conflict with the terms or provisions of, any agreement or understanding to which the Company is a
party.

          11.11 Withholding Taxes. Payments made to you pursuant to this Agreement shall be
subject to withholding and social security taxes and other ordinary and customary payroll
deductions.

          11.12 No Offset. Neither you nor the Company shall have any right to offset any
amounts owed by one party hereunder against amounts owed or claimed to be owed to such party,
whether pursuant to this Agreement or otherwise, and you and the Company shall make all the
payments provided for in this Agreement in a timely manner.

          11.13 Severability. If any provision of this Agreement shall be held invalid, the
remainder of this Agreement shall not be affected thereby; provided, however, that the parties
shall negotiate in good faith with respect to equitable modification of the provision or
application thereof held to be invalid. To the extent that it may effectively do so under
applicable law, each party hereby waives any provision of law

15

 

which renders any provision of this
Agreement invalid, illegal or unenforceable in any respect.

          11.14 Survival. Sections 3.5 and 8 through 11 shall survive any termination of the
term of employment by the Company for cause pursuant to Section 4.1. Sections 3.5, 4.4, 4.5, 4.6
and 7 through 11 shall survive any termination of the term of employment pursuant to Sections 4.2,
5 or 6.

          11.15 Definitions. The following terms are defined in this Agreement in the places
indicated:

affiliate — Section 4.2.2

Average Annual Bonus — Section 4.2.1

Base Salary — Section 3.1

Bonus — Section 3.2

cause — Section 4.1

Code — Section 4.2.2

Company — the first paragraph on page 1

Competitive Entity — Section 8.2

Disability Date — Section 5

Disability Period — Section 5

Effective Date — the first paragraph on page 1

Severance Term Date — Section 4.2.2

Sign-on Bonus — Section 3.3

Term Date — Section 1

term of employment — Section 1

termination without cause — Section 4.2.1

Work Product — Section 9

       IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	TIME WARNER CABLE, a division of

TIME WARNER ENTERTAINMENT

COMPANY, L.P.

 	 
	 	By  	/s/  Chris Bogart
 	 
	 	 	 	 
	 	 	 	 

16

 

	 	 	 	 	 
	 	 	 
	 	     /s/  Tom Baxter
 	 
	 	       TOM BAXTER 	 
	 	 	 

17

 

	 	 	 	 	 

ANNEX A

RELEASE

     Pursuant to the terms of the Employment Agreement made as of                     , between TIME
WARNER CABLE, a division of TIME WARNER ENTERTAINMENT COMPANY, L.P., a Delaware limited partnership
(the “Company”), 290 Harbor Drive, Stamford, CT 06902 and the undersigned (the “Agreement”), and in
consideration of the payments made to me and other benefits to be received by me pursuant thereto,
I, Tom Baxter, being of lawful age, do hereby release and forever discharge the Company and any
successors, subsidiaries, affiliates, related entities, predecessors, merged entities and parent
entities and their respective officers, directors, shareholders, employees, benefit plan
administrators and trustees, agents, attorneys, insurers, representatives, affiliates, successors
and assigns from any and all actions, causes of action, claims, or demands for general, special or
punitive damages, attorney’s fees, expenses, or other compensation or damages (collectively,
“Claims”), which in any way relate to or arise out of my employment with the Company or any of its
subsidiaries or the termination of such employment, which I may now or hereafter have under any
federal, state or local law, regulation or order, including without limitation, Claims related to
any stock options held by me or granted to me by the Company that are scheduled to vest subsequent
to my termination of employment and Claims under the Age Discrimination in Employment Act, Title
VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Fair Labor Standards
Act, the Family and Medical Leave Act and the Employee Retirement Income Security Act, each as
amended through and including the date of this Release; provided, however, that the
execution of this Release shall not prevent the undersigned from bringing a lawsuit against the
Company to enforce its obligations under the Agreement.

     I acknowledge that I have been given at least 21 days from the day I received a copy of this
Release to sign it and that I have been advised to consult an attorney. I understand that I have
the right to revoke my consent to this Release for seven days following my signing. This Release
shall not become effective or enforceable until the expiration of the seven-day period following
the date it is signed by me.

     I
ALSO ACKNOWLEDGE THAT BY SIGNING THIS RELEASE I MAY BE GIVING UP VALUABLE LEGAL RIGHTS AND
THAT I HAVE BEEN ADVISED TO CONSULT A LAWYER BEFORE SIGNING. I further state that I have read this
document and the Agreement referred to herein, that I know the contents of both and that I have
executed the same as my own free act.

18

 

     WITNESS my hand this       day of                     ,       .

	 	 	 	 	 
	 	 	 
	 	     /s/  Tom Baxter
 	 
	 	       TOM BAXTER 	 
	 	 	 
	 

19EX-10.37 EMPLOYMENT AGREEMENT/JOHN K. BILLOCK

 

Exhibit
10.37

     EMPLOYMENT AGREEMENT made November 5, 2001, effective as of October 15, 2001 (the
“Effective Date”), between TIME WARNER ENTERTAINMENT COMPANY, L.P., a Delaware limited partnership
(the “Company”), and JOHN BILLOCK.

     You and the Company desire to set forth the terms and conditions of your employment by the
Company and agree as follows:

     1. Term of Employment. Your “term of employment” as this phrase is used throughout
this Agreement, shall be for the period beginning on the Effective Date and ending on October 14,
2006 (the “Term Date”), subject, however, to earlier termination as set forth in this Agreement.

     2. Employment. During the term of employment, you shall serve as Vice Chairman and
Chief Operating Officer of the Time Warner Cable division of the Company (“Time Warner Cable”) and
you shall have the authority, functions, duties, powers and responsibilities normally associated
with such position and such additional authority, functions, duties, powers and responsibilities as
may be assigned to you from time to time by the Company consistent with your position. Among other
things, it is agreed that the President of Time Warner Cable shall report to you, and that the
following business functions shall report to you: Cable Operations, Marketing, Advertising Sales,
Public Affairs, and Local News. During the term of employment, (i) your services shall be rendered
on a substantially full-time, exclusive basis and you will apply on a full-time basis all of your
skill and experience to the performance of your duties, (ii) you shall report to the Chief
Executive Officer (“CEO”) of Time Warner Cable, (iii) you shall have no other employment and,
without the prior written consent of the CEO of Time Warner Cable, no outside business activities
which require the devotion of substantial amounts of your time, and (iv) the place for the
performance of your services shall be the principal executive offices of Time Warner Cable in the
greater Stamford, Connecticut area, subject to such reasonable travel as may be required in the
performance of your duties. The foregoing shall be subject to the Company’s written policies, as in
effect from time to time, regarding vacations, holidays, illness and the like.

 

 

     3. Compensation.

          3.1 Base Salary. The Company shall pay you a base salary at the rate of not less than
$900,000 per annum during the term of employment (“Base Salary”). The Company may not decrease your
Base Salary during the term of employment. Base Salary shall be paid in accordance with the
Company’s customary payroll practices.

          3.2 Bonus. In addition to Base Salary, the Company typically pays its executives an
annual cash bonus (“Bonus”). Although your Bonus is fully discretionary, your target annual Bonus
as a percentage of Base Salary is 200%, which shall be pro-rated for partial years. Each year, your
personal performance will be considered in the context of your executive duties and any individual
goals set for you, and your actual Bonus will be determined in accordance with Time Warner Cable’s
bonus plan for its most senior executives. Although as a general matter the Company expects to pay
bonuses at the target level in cases of satisfactory individual performance, it does not commit to
do so, and your Bonus may be negatively affected by the exercise of the Company’s discretion or by
overall Company performance. With respect to 2001, your Bonus shall be pro-rated taking into
account that portion of the year you shall been employed at Time Warner Cable and that portion of
the year at its sister division, Home Box Office, based on your target and performance rating at
each division. With respect to 2002, you shall receive a guaranteed minimum bonus of no less than
$1,350,000.

          3.3 Stock Options. In connection with your appointment as Chief Operating Officer of
Time Warner Cable, you will be granted an option to purchase 400,000 shares of Common Stock of AOL
Time Warner Inc. (“AOLTW”), subject to your execution of this Agreement and the approval of the
Compensation Committee of the AOLTW Board of Directors, which approval shall be recommended by the
Company within 45 days following the Effective Date. Without limiting the Company’s discretion,
commencing in 2003 you will be eligible to receive annual grants of stock options and, although the
Company does not commit to do so, you will have a target annual award of an option to purchase
400,000 shares of AOLTW Common Stock. Each such stock option grant shall be at an exercise price
equal to the fair

2

 

market value of the Common Stock of AOLTW on the date of grant and shall be
reflected in a separate AOLTW Stock Option Agreement in accordance with AOLTW’s customary
practices.

          3.4 Indemnification. You shall be entitled throughout the term of employment (and
after the end of the term of employment, to the extent relating to service during the term of
employment) to the benefit of the indemnification provisions contained on the date hereof in the
Agreement of Limited Partnership of the Company (not including any amendments or additions after
the date hereof that limit or narrow, but including any that add to or broaden, the protection
afforded to you by those provisions).

     4. Termination.

          4.1 Termination for Cause. The Company may terminate the term of employment and all of
the Company’s obligations under this Agreement, other than its obligations set forth below in this
Section 4.1, for “cause”. Termination by the Company for “cause” shall mean termination because of
(a) your conviction (treating a nolo contendere plea as a conviction) of a felony (whether or not
any right to appeal has been or may be exercised), (b) willful refusal without proper cause to
perform your obligations under this Agreement, (c) fraud, embezzlement or misappropriation with
respect to the Company or its assets, or (d) your breach of any of the covenants provided for in
Section 9, which breach is reasonably likely to adversely impact the Company. Such termination
shall be effected by written notice thereof delivered by the Company to you and shall be effective
as of the date of such notice; provided, however, that if (i) such termination is because of your
willful refusal without proper cause to perform any one or more of your obligations under this
Agreement, (ii) such notice is the first such notice of termination for any reason delivered by the
Company to you under this Section 4.1, and (iii) within 30 days following the date of such notice
you shall cease your refusal and shall use your best efforts to perform such obligations, the
termination shall not be effective.

          In the event of termination by the Company for cause, without prejudice to any other rights or
remedies that the Company may have at law or in equity, the Company shall have no further
obligation to you other than (i) to pay Base Salary through the effective date of

3

 

termination, (ii)
to pay any Bonus for any year prior to the year in which such termination occurs that has been
determined but not yet paid as of the date of such termination, and (iii) with respect to any
rights you have pursuant to any insurance or other benefit plans or arrangements of the Company.
You hereby disclaim any right to receive a pro rata portion of any Bonus with respect to the year
in which such termination occurs.

          4.2 Termination by You for Material Breach by the Company and Termination by the Company
Without Cause. Unless previously terminated pursuant to any other provision of this Agreement
and unless a Disability Period shall be in effect, you shall have the right, exercisable by written
notice to the Company, to terminate the term of employment effective 15 days after the giving of
such notice, if, at the time of the giving of such notice, the Company is in material breach of its
obligations under this Agreement; provided, however, that, with the exception of clause (i) below,
this Agreement shall not so terminate if such notice is the first such notice of termination
delivered by you pursuant to this Section 4.2 and within such 15-day period the Company shall have
cured all such material breaches. A material breach by the Company shall include, but not be
limited to, (i) the Company violating Section 2 with respect to your title, reporting lines and
functions, duties or place of employment or (ii) the Company failing to cause any successor to all
or substantially all of the business and assets of the Company expressly to assume the obligations
of the Company under this Agreement.

          The Company shall have the right, exercisable by written notice to you, to terminate your
employment under this Agreement without cause, which notice shall specify the effective date of
such termination.

               4.2.1 After the effective date of a termination pursuant to this Section 4.2 (a “termination
without cause”), you shall receive Base Salary and a pro rata portion of your Average Annual Bonus
(as defined below) through the effective date of termination. Your Average Annual Bonus shall be
equal to the average of the regular annual bonus amounts (excluding the amount of any special or
spot bonuses) in respect of the two full calendar years preceding the year of termination;
provided, however, if the Company has previously paid you no annual Bonus with respect to your
employment as Chief Operating Officer of Time Warner

4

 

Cable, then your Average Annual Bonus shall
equal your target Bonus and, if the Company has previously paid you one full-year annual Bonus in
respect of such employment, then your Average Annual Bonus shall equal the average of such Bonus
and your target Bonus.

               4.2.2 After the effective date of a termination without cause, you shall remain an employee of
the Company for a period ending on the Term Date, and during such period you shall be entitled to
receive, whether or not you become disabled during such period but subject to Section 6, (a) Base
Salary at an annual rate equal to your Base Salary in effect immediately prior to the notice of
termination, and (b) an annual Bonus in respect of each calendar year or portion thereof (in which
case a pro rata portion of such Bonus will be payable) during such period equal to your Average
Annual Bonus. Except as provided in the second succeeding sentence, if you accept other full-time
employment during such period or notify the Company in writing of your intention to terminate your
status as an employee during such period, you shall cease to be an employee of the Company
effective upon the commencement of such other employment or the effective date of such termination
as specified by you in such notice, whichever is applicable, and you shall be entitled to receive,
as severance, a lump sum payment within 30 days after such commencement or such effective date,
discounted as provided in the immediately following sentence, equal to the balance of the payments
you would have received pursuant to this Section 4.2.2 had you remained on the Company’s payroll.
That lump sum shall be discounted to present value as of the date of payment from the times at
which such amounts would otherwise have become payable absent such commencement or termination at
an annual discount rate for the relevant periods equal to 120% of the “applicable Federal rate”
(within the meaning of Section 1274(d) of the Internal Revenue Code of 1986, as amended (the
“Code”), in effect on the date of such commencement or termination, compounded semi-annually.
Notwithstanding the foregoing, if you accept employment with any not-for-profit entity, then you
shall be entitled to remain an employee of the Company and receive the payments as provided in the
first sentence of this Section 4.2.2; and if you accept full-time employment with any affiliate of
the Company, then the payments provided for in this Section 4.2.2 shall immediately cease and you
shall not be entitled to any lump sum payment. For purposes of this Agreement, the term “affiliate”
shall mean any entity which, directly or indirectly, controls, is controlled by, or is under common
control with, the Company.

5

 

          4.3 After the Term Date. If at the Term Date, the term of employment shall not have
been previously terminated pursuant to the provisions of this Agreement, no Disability Period is
then in effect and the parties shall not have agreed to an extension or renewal of this Agreement
or on the terms of a new employment agreement, then the term of employment shall continue on a
month-to-month basis and you shall continue to be employed by the Company pursuant to the terms of
this Agreement, subject to termination by either party hereto on 60 days written notice delivered
to the other party (which notice may be delivered by either party at any time on or after the date
which is 60 days prior to the Term Date). If the Company shall terminate the term of employment on
or after the Term Date for any reason (other than for cause as defined in Section 4.1, in which
case Section 4.1 shall apply), which the Company shall have the right to do so long as no
Disability Date (as defined in Section 5) has occurred prior to the delivery by the Company of
written notice of termination, then such termination shall be deemed for all purposes of this
Agreement to be a “termination without cause” under Section 4.2 and the provisions of Sections
4.2.1, 4.2.2, 4.4 and 4.5 shall apply.

          4.4 Office Facilities. In the event of a termination without cause, then for the
period beginning on the effective date of such termination and ending on the earlier of (a) twelve
months thereafter or (b) the date you continence other full-time employment, the Company shall,
without charge to you, make available to you office space at or near your principal job location
immediately prior to such termination, together with secretarial services, office facilities,
services and furnishings, in each case reasonably appropriate to an employee of your position and
responsibilities prior to such termination but taking into account your reduced need for such
office space, secretarial services and office facilities, services and furnishings as a result of
you no longer being a full-time employee.

          4.5 Release. A condition precedent to the Company’s obligation to make the payments
associated with a termination without cause shall be your execution and delivery of a release in
the form attached hereto as Annex A. If you shall fail to execute and deliver such release, or if
you revoke such release as provided therein, then in lieu of the

6

 

payments provided for herein, you
shall receive a severance payment determined in accordance with the Company’s policies relating to
notice and severance.

          4.6 Retirement. Notwithstanding the provisions of this Agreement relating to a
termination without cause and Disability, on the date you first become eligible for normal
retirement as defined in any applicable retirement plan (or, if none, any applicable qualified
employee benefit plan) of the Company or any subsidiary of the Company (the “Retirement Date”),
then this Agreement shall terminate automatically on such date and your employment with the Company
shall thereafter be governed by the policies generally applicable to employees of the Company, and
you shall not thereafter be entitled to the payments provided in this Agreement to the extent not
received by you on or prior to the Retirement Date. In addition, no benefits or payments provided
in this Agreement relating to termination without cause and Disability shall include any period
after the Retirement Date and if the provision of benefits or calculation of payments provided in
this Agreement with respect thereto would include any period subsequent to the Retirement Date,
such provision of benefits shall end on the Retirement Date and the calculation of payments shall
cover only the period ending on the Retirement Date.

          4.7 Mitigation. In the event of a termination without cause under this Agreement, you
shall not be required to seek other employment in order to mitigate your damages hereunder unless
Section 280G of the Code would apply to any payments to you by the Company and your failure to
mitigate would result in the Company losing tax deductions to which it would otherwise have been
entitled. In such an event, you will engage in whatsoever mitigation is necessary to preserve the
Company’s tax deductions. With respect to the preceding sentences, any payments or rights to which
you are entitled by reason of the termination of employment without cause shall be considered as
damages hereunder. Any obligation to mitigate your damages pursuant to this Section 4.7 shall not
be a defense or offset to the Company’s obligation to pay you in full the amounts provided in this
Agreement upon the occurrence of a termination without cause, at the time provided herein, or the
timely and full performance of any of the Company’s other obligations under this Agreement.

7

 

          4.8 Payments. So long as you remain on the payroll of the Company or any subsidiary or
division of the Company, payments of Base Salary and Bonus required to be made after a termination
without cause shall be made at the same times as similar payments are made to other senior
executives of the Company.

     5. Disability.

          5.1 Disability Payments. If during the term of employment and prior to the delivery of
any notice of termination without cause, you become physically or mentally disabled, whether
totally or partially, so that you are prevented from performing your usual duties for a period of
six consecutive months, or for shorter periods aggregating six months in any twelve-month period,
the Company shall, nevertheless, continue to pay your full compensation through the last day of the
sixth consecutive month of disability or the date on which the shorter periods of disability shall
have equaled a total of six months in any twelve-month period (such last day or date being referred
to herein as the “Disability Date”). If you have not resumed your usual duties on or prior to the
Disability Date, the Company shall pay you any unpaid Bonus for any year prior to the year in which
your employment is terminated (and if the amount of such Bonus has not been determined prior to
such termination, the amount shall be equal to your Average Annual Bonus) and a pro rata Bonus
(based on your Average Annual Bonus) for the year in which the Disability Date occurs and
thereafter shall pay you disability benefits for the period ending on the later of (i) one year
after the Disability date or (ii) the Term Date (the “Disability Period”), in an annual amount
equal to 75% of (a) your Base Salary at the time you become disabled and (b) your Average Annual
Bonus.

          5.2 Recovery from Disability. If during the Disability Period you shall fully recover
from your disability, the Company shall have the right (exercisable within 60 days after notice
from you of such recovery), but not the obligation, to restore you to full-time service at full
compensation. If the Company elects to restore you to full-time service, then this Agreement shall
continue in full force and effect in all respects and the Term Date shall not be extended by virtue
of the occurrence of the Disability Period. If the Company elects not to restore you to full-time
service, you shall be entitled to obtain other employment, subject,

8

 

however, to the following: (i)
you shall perform advisory services during any balance of the Disability Period; and (ii) you shall
comply with the provisions of Sections 9 and 10 during the Disability Period. The advisory services
referred to in clause (i) of the immediately preceding sentence shall consist of rendering advice
concerning the business, affairs and management of Time Warner Cable as requested by the CEO of
Time Warner Cable, you shall not be required to devote more than five days (up to eight hours per
day) each month to such services, which shall be performed at a time and place mutually convenient
to both parties. Any income from such other employment shall not be applied to reduce the Company’s
obligations under this Agreement.

          5.3 Other Disability Provisions. The Company shall be entitled to deduct from all
payments to be made to you during the Disability Period pursuant to this Section 5 an amount equal
to all disability payments received by you during the Disability Period from Worker’s Compensation,
Social Security and disability insurance policies maintained by the Company; provided, however,
that for so long as, and to the extent that, proceeds paid to you from such disability insurance
policies are not includible in your income for federal income tax purposes, the Company’s deduction
with respect to such payments shall be equal to the product of (i) such payments and (ii) a
fraction, the numerator of which is one and the denominator of which is one less the maximum
marginal rate of federal income taxes applicable to individuals at the time of receipt of such
payments. All payments made under this Section 5 after the Disability Date are intended to be
disability payments, regardless of the manner in which they are computed. Except as otherwise
provided in this Section 5, the term of employment shall continue during the Disability Period and
you shall be entitled to all of the rights and benefits provided for in this Agreement, except that
Sections 4.2 and 4.3 shall not apply during the Disability Period and unless the Company has
restored you to full-time service at full compensation prior to the end of the Disability Period,
the term of employment shall end and you shall cease to be an employee of the Company at the end of
the Disability Period and shall not be entitled to notice and severance or to receive or be paid
for any accrued vacation time or unused sabbatical.

     6. Death. If you die during the term of employment, this Agreement and all obligations
of the Company to make any payments hereunder shall terminate except that your

9

 

estate (or a
designated beneficiary) shall be entitled to receive Base Salary to the last day of the month in
which your death occurs and Bonus compensation (at the time bonuses are normally paid) based on the
Average Annual Bonus, but prorated according to the number of whole or partial months you were
employed by the Company in such calendar year.

     7. Life Insurance. During your employment with the Company, the Company shall (i)
provide you with $50,000 of group life insurance and (ii) pay you annually an amount equal to two
times the premium you would have to pay to obtain life insurance under the Group Universal Life
(“GUL”) insurance program made available by the Company in an amount equal to $3,000,000. You shall
be under no obligation to use the payments made by the Company pursuant to the preceding sentence
to purchase GUL insurance or to purchase any other life insurance. If the Company discontinues its
GUL insurance program, the Company shall nevertheless make the payments required by this Section 7
as if such program were still in effect. The payments made to you hereunder shall not be considered
as “salary” or “compensation” or “bonus” in determining the amount of any payment under any
pension, retirement, profit-sharing or other benefit plan of the Company or any subsidiary of the
Company.

     8. Other Benefits.

          8.1 General Availability. To the extent that (a) you are eligible under the general
provisions thereof (including without limitation, any plan provision providing for participation to
be limited to persons who were employees of the company or certain of its subsidiaries prior to a
specific point in time) and (b) the Company or AOLTW maintains such plan or program for the benefit
of senior executives at Time Warner Cable, during the term of employment and so long as you are an
employee of the Company, you shall be eligible to participate in any profit-sharing, savings or
similar plan or program and in any group life insurance (to the extent set forth in Section 7),
hospitalization, medical, dental, accident, disability or similar plan or program of the Company
now existing or established hereafter for Time Warner Cable’s senior executives, including, without
limitation, to the extent maintained in effect by the Company for senior executives of Time Warner
Cable, an automobile allowance

10

 

and reimbursement for financial services, both of which shall be
subject to elimination in the event eliminated for all senior executives of Time Warner Cable at
the Company’s discretion.

          8.2 Benefits After a Termination or Disability. During the period you remain on the
payroll of the Company after a termination without cause or during the Disability Period, you shall
continue to be eligible to participate in the benefit plans and to receive the benefits required to
be provided to you under this Agreement to the extent such benefits are maintained in effect by the
Company for its executives; provided, however, you shall not be entitled to any additional awards
or grants under any stock option, restricted stock or other stock based incentive plan. At the time
you leave the payroll of the Company, your rights to benefits and payments under any benefit plans
or any insurance or other death benefit plans or arrangements of the Company or under any stock
option, restricted stock, stock appreciation right, bonus unit, management incentive or other plan
of the Company shall be determined in accordance with the terms and provisions of such plans and
any agreements under which such stock options, restricted stock or other awards were granted.
However, notwithstanding the foregoing or any more restrictive provisions of any such plan or
agreement, if you leave the payroll of the Company as a result of a termination pursuant to Section
4.2, then, except if you shall otherwise qualify for retirement under the terms of the applicable
stock option agreement, (i) all stock options granted to you by AOLTW or Time Warner Inc. on or
after January 10, 2000 (which options are collectively referred to as your “Term Options”) which
would have vested on or before the Term Date (or the comparable date under any employment agreement
that amends, replaces or supersedes this Agreement) shall vest and become immediately exercisable
upon the effective date of such termination, (ii) all your vested Term Options shall remain
exercisable while you are on the payroll of the Company and for a period of three years after the
date you leave the payroll of the Company (but not beyond the term of such options), and (iii) the
Company shall not be permitted to determine that your employment was terminated for “unsatisfactory
performance” within the meaning of any stock option agreement between you and AOLTW or Time Warner
Inc.

          8.3 Payments in Lieu of Other Benefits. In the event the term of employment and your
employment with the Company is terminated pursuant to any section of

11

 

this Agreement, you shall not
be entitled to notice and severance under the Company’s general employee policies or to be paid for
any accrued vacation time or unused sabbatical, the payments provided for in such sections being in
lieu thereof.

     9. Protection of Confidential Information; Non-Compete.

          9.1 Confidentiality Covenant. You acknowledge that your employment by the Company
(which, for purposes of this Section 9 shall mean AOL Time Warner Inc. and its affiliates) will,
throughout the term of employment, bring you into close contact with many confidential affairs of
the Company, including information about costs, profits, markets, sales, products, key personnel,
pricing policies, operational methods, technical processes and other business affairs and methods
and other information not readily available to the public, and plans for future development. You
further acknowledge that the services to be performed under this Agreement are of a special,
unique, unusual, extraordinary and intellectual character. You further acknowledge that the
business of the Company is international in scope, that its products and services are marketed
throughout the world, that the Company competes in nearly all of its business activities with other
entities that are or could be located in nearly any part of the world and that the nature of your
services, position and expertise are such that you are capable of competing with the Company from
nearly any location in the world. In recognition of the foregoing, you covenant and agree:

               9.1.1 You shall keep secret all confidential matters of the Company and shall not disclose
such matters to anyone outside of the Company, or to anyone inside the Company who does not have a
need to know or use such information, and shall not use such information for personal benefit or
the benefit of a third party, either during or after the term of employment, except with the
Company’s written consent, provided that (i) you shall have no such obligation to the extent such
matters are or become publicly known other than as a result of your breach of your obligations
hereunder and (ii) you may, after giving prior notice to the Company to the extent practicable
under the circumstances, disclose such matters to the extent required by applicable laws or
governmental regulations or judicial or regulatory process;

12

 

               9.1.2 You shall deliver promptly to the Company, at the Company’s expense, on termination of
your employment, or at any other time the Company may so request, all memoranda, notes, records,
reports and other documents (and all copies thereof) relating to the Company’s business, which you
obtained while employed by, or otherwise serving or acting on behalf of, the Company and which you
may then possess or have under your control; and

               9.1.3 If the term of employment is terminated pursuant to Section 4, for a period of one year
after such termination, without the prior written consent of the Company, you shall not employ, and
shall not cause any entity of which you are an affiliate to employ, any person who was a full-time
employee of the Company at the date of such termination or within six months prior thereto but such
prohibition shall not apply to your secretary or executive assistant or to any other employee
eligible to receive overtime pay.

          9.2 Non-Compete. During the term of employment and through the later of (i) the Term
Date, (ii) the date you leave the payroll of the Company, and (iii) twelve months after the
effective date of any termination of the term of employment pursuant to Section 4, you shall not,
directly or indirectly, without the prior written consent of the CEO of Time Warner Cable, render
any services to, or act in any capacity for (x) any of the entities identified below (“Specified
Entities”) or (y) any person or entity which is in competition with Time Warner Cable (which, for
purposes of this Section 9.2 shall mean Time Warner Cable, any related businesses conducted by the
Time Warner Service Partnerships or any of their respective subsidiaries), or acquire any interest
of any type in any such person or entity; provided, however, that the foregoing shall not be deemed
to prohibit you from acquiring, (a) solely as an investment and through market purchases,
securities of any competitive entity which are registered under Section 12(b) or 12(g) of the
Securities Exchange Act of 1934 and which are publicly traded, so long as you are not part of any
control group of such competitive entity and such securities, including converted securities, do
not constitute more than one percent (1%) of the outstanding voting power of that entity and (b)
securities of any competitive entity that are not publicly traded, so long as you are not part of
any control group of such competitive entity and such securities, including converted securities,
do not constitute more than three percent (3%) of the

13

 

outstanding voting power of that entity. For
purposes of the foregoing, a person or entity shall be deemed to be in competition with Time Warner
Cable if such person or it engages in any line of business that is substantially the same as either
(i) any line of business which Time Warner Cable engages in, conducts or, to your knowledge, has
definitive plans to engage in or conduct, or (ii) any operating business that is engaged in or
conducted by Time Warner Cable as to which, to your knowledge, Time Warner Cable covenants in
writing, not to compete with in connection with the disposition of such business, and a Specified
Entity shall mean AT&T Corporation, Bertelsmann A.G., The Walt Disney Company, EarthLink, Inc.,
General Electric Corporation, Microsoft Corporation, The News Corporation, Sony Corporation,
Vivendi Universal, S.A., Viacom Inc. and Yahoo! Inc., and their respective subsidiaries and
affiliates and any successor to any internet service provider, media or entertainment business
thereof.

     10. Ownership of Work Product. You acknowledge that during the term of employment, you
may conceive of, discover, invent or create inventions, improvements, new contributions, literary
property, material, ideas and discoveries, whether patentable or copyrightable or not (all of the
foregoing being collectively referred to herein as “Work Product”), and that various business
opportunities shall be presented to you by reason of your employment by the Company. You
acknowledge that all of the foregoing shall be owned by and belong exclusively to the Company and
that you shall have no personal interest therein, provided that they are either related in any
manner to the business (commercial or experimental) of the Company, or are, in the case of Work
Product, conceived or made on the Company’s time or with the use of the Company’s facilities or
materials, or, in the case of business opportunities, are presented to you for the possible
interest or participation of the Company. You shall (i) promptly disclose any such Work Product and
business opportunities to the Company; (ii) assign to the Company, upon request and without
additional compensation, the entire rights to such Work Product and business opportunities; (iii)
sign all papers necessary to carry out the foregoing; and (iv) give testimony in support of your
inventorship or creation in any appropriate case. You agree that you will not assert any rights to
any Work Product or business opportunity as having been made or acquired by you prior to the date
of this Agreement except for Work Product or business opportunities, if any, disclosed to and
acknowledged by the Company in writing prior to the date hereof.

14

 

     11. Notices. All notices, requests, consents and other communications required or
permitted to be given under this Agreement shall be effective only if given in writing and shall be
deemed to have been duly given if delivered personally or sent by a nationally recognized overnight
delivery service, or mailed first-class, postage prepaid, by registered or certified mail, as
follows (or to such other or additional address as either party shall designate by notice in
writing to the other in accordance herewith):

          11.1 If to the Company:

Time Warner Entertainment Company, L.P.

75 Rockefeller Plaza

New York, New York 10019

Attention: Vice President — Global

Compensation and Benefits

with a copy to

Time Warner Cable

290 Harbor Drive

Stamford, CT 06902

Attention: General Counsel

          11.2 If to you, to your residence address set forth on the records of the Company, with a copy
to:

David Alexander, Esq.

Peyser & Alexander Management, Inc.

500 5th Avenue — Suite 2700

New York, NY 10110

     12. General.

          12.1 Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the substantive laws of the State of New York applicable to agreements made and to
be performed entirely in New York.

15

 

          12.2 Captions. The section headings contained herein are for reference purposes only
and shall not in any way affect the meaning or interpretation of this Agreement.

          12.3 Entire Agreement. This Agreement, including Annex A, sets forth the entire
agreement and understanding of the parties relating to the subject matter of this Agreement and
supersedes all prior agreements, arrangements and understandings, written or oral, between the
parties.

          12.4 No Other Representations. No representation, promise or inducement has been made
by either party that is not embodied in this Agreement, and neither party shall be bound by or be
liable for any alleged representation, promise or inducement not so set forth.

          12.5 Assignability. This Agreement and your rights and obligations hereunder may not
be assigned by you and except as specifically contemplated in this Agreement, neither you, your
legal representative nor any beneficiary designated by you shall have any right, without the prior
written consent of the Company, to assign, transfer, pledge, hypothecate, anticipate or commute to
any person or entity any payment due in the future pursuant to any provision of this Agreement, and
any attempt to do so shall be void and shall not be recognized by the Company. The Company shall
assign its rights together with its obligations hereunder in connection with any sale, transfer or
other disposition of all or substantially all of the Company’s business and assets, whether by
merger, purchase of stock or assets or otherwise, as the case may be. Upon any such assignment, the
Company shall cause any such successor expressly to assume such obligations, and such rights and
obligations shall inure to and be binding upon any such successor.

          12.6 Amendments; Waivers. This Agreement may be amended, modified, superseded,
cancelled, renewed or extended and the terms or covenants hereof may be waived only by written
instrument executed by both of the parties hereto, or in the case of a waiver, by the party waiving
compliance. The failure of either party at any time or times to require performance of any
provision hereof shall in no manner affect such party’s right at a later

16

 

time to enforce the same.
No waiver by either party of the breach of any term or covenant contained in this Agreement, in any
one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of
any such breach, or a waiver of the breach of any other term or covenant contained in this
Agreement.

          12.7 Specific Remedy. In addition to such other rights and remedies as the Company may
have at equity or in law with respect to any breach of this Agreement, if you commit a material
breach of any of the provisions of Sections 9.1, 9.2, or 10, the Company shall have the right and
remedy to have such provisions specifically enforced by any court having equity jurisdiction, it
being acknowledged and agreed that any such breach or threatened breach will cause irreparable
injury to the Company.

          12.8 Resolution of Disputes. Except as provided in the preceding Section 12.7, any
dispute or controversy arising with respect to this Agreement and your employment hereunder
(whether based on contract or tort or upon any federal, state or local statute, including but not
limited to claims asserted under the Age Discrimination in Employment Act, Title VII of the Civil
Rights Act of 1964, as amended, any state Fair Employment Practices Act and/or the Americans with
Disability Act) shall, at the election of either you or the Company, be submitted to JAMS/ENDISPUTE
for resolution in arbitration in accordance with the rules and procedures of JAMS/ENDISPUTE. Either
party shall make such election by delivering written notice thereof to the other party at any time
(but not later than 45 days after such party receives notice of the commencement of any
administrative or regulatory proceeding or the filing of any lawsuit relating to any such dispute
or controversy) and thereupon any such dispute or controversy shall be resolved only in accordance
with the provisions of this Section 12.8. Any such proceedings shall take place in New York City
before a single arbitrator (rather than a panel of arbitrators), pursuant to any streamlined or
expedited (rather than a comprehensive) arbitration process, before a non-judicial (rather than a
judicial) arbitrator, and in accordance with an arbitration process which, in the judgment of such
arbitrator, shall have the effect of reasonably limiting or reducing the cost of such arbitration.
The resolution of any such dispute or controversy by the arbitrator appointed in accordance with
the procedures of JAMS/ENDISPUTE shall be final and binding. Judgment upon the award rendered by
such

17

 

arbitrator may be entered in any court having jurisdiction thereof, and the parties consent to
the jurisdiction of the New York courts for this purpose. The prevailing party shall be entitled to
recover the costs of arbitration (including reasonable attorneys fees and the fees of experts) from
the losing party. If at the time any dispute or controversy arises with respect to this Agreement,
JAMS/ENDISPUTE is not in business or is no longer providing arbitration services, then the American
Arbitration Association shall be substituted for JAMS/ENDISPUTE for the purposes of the foregoing
provisions of this Section 12.8. If you shall be the prevailing party in such arbitration, the
Company shall promptly pay, upon your demand, all legal fees, court costs and other costs and
expenses incurred by you in any legal action seeking to enforce the award in any court.

          12.9 Beneficiaries. Whenever this Agreement provides for any payment to your estate,
such payment may be made instead to such beneficiary or beneficiaries as you may designate by
written notice to the Company. You shall have the right to revoke any such designation and to
redesignate a beneficiary or beneficiaries by written notice to the Company (and to any applicable
insurance company) to such effect.

          12.10 No Conflict. You represent and warrant to the Company that this Agreement is
legal, valid and binding upon you and the execution of this Agreement and the performance of your
obligations hereunder does not and will not constitute a breach of, or conflict with the terms or
provisions of, any agreement or understanding to which you are a party (including, without
limitation, any other employment agreement). The Company represents and warrants to you that this
Agreement is legal, valid and binding upon the Company and the execution of this Agreement and the
performance of the Company’s obligations hereunder does not and will not constitute a breach of, or
conflict with the terms or provisions of, any agreement or understanding to which the Company is a
party.

          12.11 Withholding Taxes. Payments made to you pursuant to this Agreement shall be
subject to withholding and social security taxes and other ordinary and customary payroll
deductions.

18

 

          12.12 No Offset. Neither you nor the Company shall have any right to offset any
amounts owed by one party hereunder against amounts owed or claimed to be owed to such party,
whether pursuant to this Agreement or otherwise, and you and the Company shall make all the
payments provided for in this Agreement in a timely manner.

          12.13 Severability. If any provision of this Agreement shall be held invalid, the
remainder of this Agreement shall not be affected thereby; provided, however, that the parties
shall negotiate in good faith with respect to equitable modification of the provision or
application thereof held to be invalid. To the extent that it may effectively do so under
applicable law, each party hereby waives any provision of law which renders any provision of this
Agreement invalid, illegal or unenforceable in any respect.

          12.14 Survival. Sections 3.4, 8.3 and 9 through 12 shall survive any termination of
the term of employment by the Company for cause pursuant to Section 4.1. Sections 3.4, 4.4, 4.5,
4.7 and 8 through 12 shall survive any termination of the term of employment pursuant to Sections
4.2, 5 or 6.

          12.15 Definitions. The following terms are defined in this Agreement in the places
indicated:

          affiliate — Section 4.2.2

          AOLTW — Section 3.3

          Average Annual Bonus — Section 4.2.1

          Base Salary — Section 3.1

          Bonus — Section 3.2

          cause — Section 4.1

          Code — Section 4.2.2

          Company — the first paragraph on page 1 and Section 9.1

          Disability Date — Section 5

          Disability Period — Section 5

          Effective Date — the first paragraph on page 1

19

 

          Retirement Date — Section 4.6

          Specified Entity — Section 9.2

          Term Date — Section 1

          Term Options — Section 8.2

          term of employment — Section 1

          termination without cause — Section 4.2.1

          Time Warner Cable — Section 2 and Section 9.2

          Work Product — Section 10

     IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	TIME WARNER ENTERTAINMENT COMPANY, L.P.

 	 
	 	By:  	/s/  Mark A. Wainger
 	 
	 	 	       Vice President 	 
	 	 	 	 
	 
	 	 	 
	 	                                           /s/  John Billock
 	 
	 	John Billock 	 
	 	 	 

20

 

	 	 	 	 	 

ANNEX A

RELEASE

     Pursuant to the terms of the Employment Agreement made as of                     , between TIME
WARNER ENTERTAINMENT COMPANY, L.P., a Delaware limited partnership (the “Company”), 75 Rockefeller
Plaza, New York, New York 10019 and the undersigned (the “Agreement”), and in consideration of the
payments made to me and other benefits to be received by me pursuant thereto, I, [Name], being of
lawful age, do hereby release and forever discharge the Company and any successors, subsidiaries,
affiliates, related entities, predecessors, merged entities and parent entities and their
respective officers, directors, shareholders, employees, benefit plan administrators and trustees,
agents, attorneys, insurers, representatives, affiliates, successors and assigns from any and all
actions, causes of action, claims, or demands for general, special or punitive damages, attorney’s
fees, expenses, or other compensation or damages (collectively, “Claims”), which in any way relate
to or arise out of my employment with the Company or any of its subsidiaries or the termination of
such employment, which I may now or hereafter have under any federal, state or local law,
regulation or order, including without limitation, Claims related to any stock options held by me
or granted to me by the Company that are scheduled to vest subsequent to my termination of
employment and Claims under the Age Discrimination in Employment Act, Title VII of the Civil Rights
Act of 1964, the Americans with Disabilities Act, the Fair Labor Standards Act, the Family and
Medical Leave Act and the Employee Retirement Income Security Act, each as amended through and
including the date of this Release; provided, however, that the execution of this
Release shall not prevent the undersigned from bringing a lawsuit against the Company to enforce
its obligations under the Agreement.

     I acknowledge that I have been given at least 21 days from the day I received a copy of this
Release to sign it and that I have been advised to consult an attorney. I understand that I have
the right to revoke my consent to this Release for seven days following my signing. This Release
shall not become effective or enforceable until the expiration of the seven-day period following
the date it is signed by me.

     I ALSO ACKNOWLEDGE THAT BY SIGNING THIS RELEASE I MAY BE GIVING UP VALUABLE LEGAL RIGHTS AND
THAT I HAVE BEEN ADVISED TO CONSULT A LAWYER BEFORE SIGNING. I further state that I have read this
document and the Agreement referred to herein, that I know the contents of both and that I have
executed the same as my own free act.

     WITNESS
my hand this       day of                     ,      .

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	[Name] 	 
	 

21

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