Document:

exv10w1

Exhibit 10.1

          AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) made April 29, 2010
effective as of January 1, 2010 (the “Effective Date”), between TIME WARNER INC., a Delaware
corporation (the “Company”), and John Martin (“You”).

          You are currently employed by the Company pursuant to an Amended and Restated Employment
Agreement made December 19, 2008, effective as of December 1, 2008, which amended and superseded an
agreement made December 20, 2007, effective as of January 1, 2008 (the ”Initial Effective Date”)
(the “Prior Agreements”). The Company wishes to amend and restate the terms of your employment
with the Company and to secure your services on a full-time basis for the period to and including
December 31, 2013 on and subject to the terms and conditions set forth in this Agreement, and you
are willing to provide such services on and subject to the terms and conditions set forth in this
Agreement. You and the Company therefore 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 Initial Effective Date and ending on
December 31, 2013 (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 the Executive
Vice President and Chief Financial Officer of the Company or in such other senior 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
have no other employment and, without the prior written consent of your manager or other more
senior officer of the Company in your reporting line, no outside business activities which require
the devotion of substantial amounts of your time, (iii) you shall report to the Chief Executive
Officer of the Company, and (iv) the place for the performance of your services shall be the
principal executive offices of the Company in the New York City metropolitan 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 $1,500,000 per annum beginning from the Effective Date and continuing for the rest of the term
of employment (“Base Salary”). The Company shall make a payment promptly following the execution of
this Agreement of the difference between the former salary and the increased salary for the period
from the Effective Date to the date of execution. The Company may increase, but not decrease
without your consent, your Base Salary during remainder of 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, you may be entitled to receive during the
term of employment an annual cash bonus (“Bonus”) subject to and pursuant to the Company’s Annual
Incentive Plan for Executive Officers (such plan, together with any successor plan of Company
intended to comply with Section 162(m) of the Internal Revenue Code of 1986, as amended (the
“Code”), being hereinafter referred to as the “Annual Bonus Plan”). Although your Bonus is fully
discretionary, beginning with the Effective Date, your target annual Bonus is $3,750,000, but the
parties acknowledge that your actual Bonus will vary depending on the actual performance of you and
the Company from a minimum of $0 and up to a maximum Bonus of $5,625,000 or some other greater
amount as determined by the Compensation and Human Development Committee of the Board of Directors
of the Company (the “Compensation Committee”). 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. 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 Compensation Committee’s
discretion or by overall Company performance. Payments of any bonus compensation under this Section
3.2 shall be paid to you between January 1 and March 15 of the calendar year immediately following
the performance year in respect of which such Bonus is earned.

               3.3 Long Term Incentive Compensation. So long as the term of employment has not
terminated the Company annually shall provide you with long term

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incentive compensation. Beginning in 2011 the target value of the annual long term compensation award will be $3,250,000 (based on
the valuation method used by the Company for its senior executives) through a combination of stock
option grants, restricted stock units, performance shares,other equity-based awards, cash-based
long-term plans or other components as may be determined by the Compensation and Human Development
Committee of the Company’s Board of Directors from time to time in its sole discretion.

               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
Restated Certificate of Incorporation and By-laws 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).

               3.5 Signing Equity Grant. In accordance with Section 3.5 of the Prior Agreements, on
January 2, 2008, you were awarded options to purchase 39,141 shares of Time Warner common stock and
31,682 restricted stock units (the “Make-Whole RSUs” and, together with the stock options, the
“Make-Whole Awards”), reflecting the adjustments made to such Make-Whole Awards in connection with
the separations of Time Warner Cable Inc. and AOL Inc. in 2009 and the 1-for-3 reverse stock split
that became effective March 27, 2009. The Make-Whole Awards were intended to have a combined
valuation of approximately $1,550,000 based on calculations as of October 31, 2007, and were
granted to replace equity awards granted by Time Warner Cable Inc. and amounts you expected to
receive pursuant to a cash long-term incentive plan maintained by Time Warner Cable Inc. You
irrevocably agreed to cancel all outstanding stock options, restricted stock units or other awards
based on any class of common stock of Time Warner Cable Inc. granted to you by Time Warner Cable
Inc. effective January 1, 2008. The Make-Whole Awards are reflected in award agreements entered
into between you and the Company, with the standard form of restricted stock units agreement
modified to provide that the Make-Whole RSUs will
have accelerated vesting on a pro-rated based on the Severance Term Date in the event of a
termination of employment pursuant to Section 4.2.

     4. Termination.

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               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 your (a) 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 failure or refusal
without proper cause to perform your duties with the Company, including your obligations under this
Agreement (other than any such failure resulting from your incapacity due to physical or mental
impairment), (c) misappropriation, embezzlement or reckless or willful destruction of Company
property, (d) breach of any statutory or common law duty of loyalty to the Company, (e) intentional
and improper conduct materially prejudicial to the business of the Company or any of its
affiliates, or (f) breach of any of the covenants provided for in Section 8 hereof. 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 failure or 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 the termination
of employment (the “Effective Termination Date”), (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 Effective
Termination Date, 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 under this Agreement with an Effective
Termination Date 30 days after the

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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 30-day period the Company shall have cured all such material breaches; and provided
further, that such notice is provided to the Company within 90 days after the occurrence of such
material breach. A material breach by the Company shall include, but not be limited to, (i) the
Company violating Section 2 with respect to authority, reporting lines, 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 delivered before the
date which is 60 days prior to the Term Date, to terminate your employment under this Agreement
without cause, which notice shall specify the Effective Termination Date. If such notice is
delivered on or after the date which is 60 days prior to the Term Date, the provisions of Section
4.3 shall apply.

                    4.2.1 In the event of a termination of employment 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 Termination Date. 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 three calendar
years for which the annual bonus received by you from the Company was the greatest. Your pro rata
Average Annual Bonus pursuant to this Section 4.2.1 shall be paid to you at the times set forth in
Section 4.6.

                    4.2.2 After the Effective Termination Date, you shall continue to be treated as an employee
of the Company for a period ending on the date which is twenty-four months after the Effective
Termination Date (the “Severance 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 (on the Company’s normal payroll payment dates as in effect immediately prior to the
Effective Termination Date) 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

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(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 next sentence, if you accept other
full-time employment during such period or notify the Company in writing of your intention to
terminate your status of being treated as an employee during such period, you shall cease to be
treated as an employee of the Company for purposes of your rights to receive certain
post-termination benefits under Section 7.2 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 (the “Equity Cessation Date”), and you shall receive the remaining payments of Base
Salary and Bonus pursuant to this Section 4.2.2 at the times specified in Section 4.6 of the
Agreement. Notwithstanding the foregoing, if you accept employment with any not-for-profit entity
or governmental entity, then you may continue to be treated as an employee of the Company for
purposes of your rights to receive certain post-termination benefits pursuant to Section 7.2 and
you will continue to 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
further payments. 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, 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 and 4.2.2 shall apply.

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               4.4 Release. A condition precedent to the Company’s obligation to make or continue
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, as such form may be updated by the Company as
required by law, within 60 days following your Effective Termination Date. If you shall fail to
timely execute and deliver such release, or if you revoke such release as provided therein, then in
lieu of continuing to receive the payments provided for herein, you shall receive a severance
payment determined in accordance with the Company’s policies relating to notice and severance
reduced by the aggregate amount of severance payments paid pursuant to this Agreement, if any,
prior to the date of your refusal to deliver, or revocation of, such release. Any such severance
payments shall be paid in the form of Base Salary continuation payments at the annual rate equal to
your Base Salary in effect immediately prior to your notice of termination, with such amounts paid
until your severance benefit has been exhausted.

               4.5 Mitigation. In the event of a termination without cause under this Agreement, you
shall not be required to take actions 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, Section 4.7.1 shall govern. 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 4.5 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. Payments of Base Salary and Bonus required to be made to you after
any termination shall be made at the same times as such payments otherwise would have been paid to
you pursuant to Sections 3.1 and 3.2 if you had not been terminated, subject to Section 11.17.

               4.7 Limitation on Certain Payments. Notwithstanding any other provision of this
Agreement:

                    4.7.1. In the event that part or all of the consideration,

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compensation or benefits to be paid to you under this Agreement would constitute “parachute payments” under Section 280G(b)(2) of the
Code, then, if the aggregate present value of such parachute payments, singularly or together with
the aggregate present value of any consideration, compensation or benefits to be paid to you under
any other plan, arrangement or agreement which constitute “parachute payments” (collectively, the
“Parachute Amount”) exceeds 2.99 times your “base amount”, as defined in Section 280G(b)(3) of the
Code (the “Base Amount”), the amounts constituting “parachute payments” which would otherwise be
payable to you or for your benefit shall be reduced to the extent necessary so that the Parachute
Amount is equal to 2.99 times the Base Amount (the “Reduced Amount”); provided that such amounts
shall not be so reduced without such reduction you would be entitled to receive and retain, on a
net after tax basis (including, without limitation, any excise taxes payable under Section 4999 of
the Code), an amount which is greater than the amount, on a net after tax basis, that you would be
entitled to retain upon receipt of the Reduced Amount.

                    4.7.2. If the determination made pursuant to Section 4.7.1 results in a reduction of the
payments that would otherwise be paid to you except for the application of Section 4.7.1, such
reduction in payments shall be first applied to reduce any cash severance payments that you would
otherwise be entitled to receive hereunder and shall thereafter be applied to reduce other payments
and benefits in a manner that would not result in subjecting you to additional taxation under
Section 409A of the Code, unless you elect to have the reduction in payments applied in a different
order. Within ten days following such determination, the Company shall pay or distribute to you or
for your benefit such amounts as are then due to you under this Agreement and shall promptly pay
or distribute to you or for your benefit in the future such amounts as become due to you under this
Agreement.

                    4.7.3. As a result of the uncertainty in the application of Sections 280G and 4999 of the Code
at the time of a determination hereunder, it is possible that payments will be made by the Company
that should not have been made under Section 4.7.1 (an “Overpayment”). In the event that there is a
final determination by the Internal Revenue Service, or a final determination by a court of
competent jurisdiction, that an Overpayment has been made, the Company shall have no further
liability or obligation to you for any excise taxes, interest or penalty that you are required to
pay as a result of such final determination.

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          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”), subject to Section 11.17. 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, in each case, subject to Section 11.17.

               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 8 and 9 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 the Company as requested by the Chief Executive Officer or
other more senior officer of 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.

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               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 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

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maintains such plan or program
for the benefit of its executives, during the term of your employment with the Company, you shall
be eligible to participate in any savings plan, 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. After the Effective
Termination Date of employment pursuant to Section 4.2 and prior to the Severance Term Date or
during the Disability Period, you shall continue to be treated as an employee of the Company for
purposes of eligibility to participate in the Company’s health and welfare benefit plans other than
disability programs and to receive the health and welfare benefits (other than disability programs)
required to be provided to you under this Agreement to the extent such health and welfare benefits
are maintained in effect by the Company for its executives. After the Effective Termination Date
of a termination of employment pursuant to Section 4 or during a Disability Period, you shall not
be entitled to any additional awards or grants under any stock option, restricted stock or other
stock-based incentive plan and you shall not be entitled to continue elective deferrals in or
accrue additional benefits under any qualified or nonqualified retirement programs maintained by
the Company. At the Severance Term Date your rights to benefits and payments under any health and
welfare benefit plans or any insurance or other death benefit plans or arrangements of the Company
shall be determined in accordance with the terms and provisions of such plans. At the Severance
Term Date or, if earlier, the Equity Cessation Date, your rights to benefits and payments under any
stock option, restricted stock, stock appreciation right, bonus unit, management incentive or other
long-term incentive 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, consistent with the terms of the employment agreement dated as
of February 13, 2002 between the Company and you (which terms were carried forward to the
employment agreement between you and Time Warner Entertainment Company, L.P. and to the Prior
Agreements), 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, (i) all stock options to purchase shares of Time Warner Common Stock shall
continue to vest, and any such vested stock options shall remain exercisable (but not beyond the
term of such options), through the earlier of the Severance Term Date or the Equity Cessation Date;
(ii) except if you shall then qualify for retirement under the terms of the applicable stock option

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agreement and would receive more favorable treatment under the terms of the stock option agreement,
(x) all stock options to purchase shares of Time Warner Common Stock granted to you on or after
February 1, 2002 (the “Term Options”) that would have vested on or before the Severance 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 earlier of the Severance Term
Date or the Equity Cessation Date, and (y) all your vested Term Options shall remain exercisable
for a period of three years after the earlier of the Severance Term Date or the Equity Cessation
Date (but not beyond the term of such stock 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. With respect to awards of
restricted stock units for Time Warner Common Stock (“RSUs”) held at the Effective Termination Date
of a termination of employment pursuant to Section 4.2, subject to potential further delay in
payment pursuant to Section 11.17, (i) if you are eligible for retirement treatment at the
Effective Termination Date, then for all awards of RSUs that contain special accelerated vesting
upon retirement, the vesting of the RSUs will accelerate upon, and the shares of Time Warner Common
Stock will be paid to you promptly following, the Effective Termination Date; and (ii) if you are
not eligible for retirement treatment at the Effective Termination Date, then the treatment of the
RSUs (other than the Make-Whole RSU grant made pursuant to Section 3.5) will be determined at the
earlier of the Severance Term Date or the Equity Cessation Date in accordance with the terms of the
applicable award agreement(s), but the shares of Time Warner Common Stock underlying any vested
RSUs will not be paid to you until promptly following the next regular vesting date(s) for such
award(s) of RSUs. With respect to the Make-Whole RSUs, if there is a termination of employment
pursuant to Section 4.2 at a time when you are not eligible for retirement treatment, then, subject
to potential further delay in payment pursuant to Section 11.17, a pro-rated portion of the
Make-Whole RSU,
representing the number of RSUs that would vest through the Severance Term Date, shall vest and be
paid to you promptly following the Effective Termination Date.

               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.

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               7.4 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 the Company determines an employee would have to pay to obtain life insurance
under a standard group universal life insurance program in an amount equal to $3,000,000. The
Company shall pay you such amount no later than March 15 of the calendar year following any
calendar year in which you are entitled to this amount. You shall be under no obligation to use the
payments made by the Company pursuant to the preceding sentence to purchase any additional life
insurance. 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. Protection of Confidential Information; Non-Compete.

                    8.1 Confidentiality Covenant. You acknowledge that your employment by the Company
(which, for purposes of this Section 8 shall mean 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:

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                    8.1.1 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;

                    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 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

                    8.1.3 If the term of employment is terminated pursuant to Section 4, for a period of one
year after the Effective Termination Date, 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 for a period of twelve months
after (i) the effective date of your retirement or other voluntary
termination of employment or (ii) the Effective Termination Date of a termination 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

14

 

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: (x) during the period that you are actively employed with the
Company, during the Disability Period, or prior to the Effective Termination Date in the event your
employment is terminated pursuant to Section 4, any person or entity that engages in any line of
business that is substantially the same as either (i) any line of business which the Company
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 the Company as to which, to your
knowledge, the Company covenants, in writing, not to compete with in connection with the
disposition of such business, and (y) after the Disability Period, the Effective Termination Date
in the event of a termination of your term of employment pursuant to Section 4 or the effective
date of your retirement or other voluntary termination of employment, any of the following: CBS
Corporation, The Walt Disney Company, General Electric Corporation, Google Inc., Microsoft
Corporation, The News Corporation Ltd., Sony Corporation, and Viacom Inc., and their respective
subsidiaries and affiliates and any successor to the media or entertainment businesses thereof.

          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 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

15

 

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 Inc.

One Time Warner Center

New York, New York 10019

Attention: Senior Vice President — Global

Compensation and Benefits

(with a copy, similarly addressed

but 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 New York applicable to agreements made and
to be performed entirely in New York.

               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.

16

 

               11.3 Entire Agreement. This Agreement, including Annexes A and B, set 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 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

17

 

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 for
resolution in arbitration in accordance with the rules and procedures of JAMS. 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 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 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 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 is not in
business or is no longer providing arbitration services, then the American Arbitration Association
shall be substituted for JAMS for the purposes of the foregoing provisions of this Section 11.8.
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.

18

 

               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 Conflict of Interest. Attached as Annex B and made part of this Agreement is
the Time Warner Corporate Standards of Business Conduct. You confirm that you have read,
understand and will comply with the terms thereof and any reasonable amendments thereto. In
addition, as a condition of your employment under this Agreement, you understand that you may be
required periodically to confirm that you have read, understand and will comply with the Standards
of Business Conduct as the same may be revised from time to time.

               11.12 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.

               11.13 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.

19

 

               11.14 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.

               11.15 Survival. Sections 3.4, 7.3 and 8 through 11 shall survive any termination
of the term of employment by the Company for cause pursuant to Section 4.1. Sections 3.4, 4.4,
4.5, 4.6, 4.7 and 7 through 11 shall survive any termination of the term of employment pursuant to
Sections 4.2, 5 or 6.

               11.16 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 Amount — Section 4.7.1

Base Salary — Section 3.1

Bonus — Section 3.2

cause — Section 4.1

Code — Section 4.5

Company — the first paragraph on page 1 and Section 8.1

Competitive Entity — Section 8.2

Disability Date — Section 5

Disability Period — Section 5

Effective Date — the first paragraph on page 1

Effective Termination Date — Section 4.1

Equity Cessation Date — Section 4.2.2

Initial Effective Date — the second paragraph of page 1

Make-Whole Awards — Section 3.5

Make-Whole RSUs — Section 3.5

Overpayment — Section 4.7.3

Parachute Amount — Section 4.7.1

Prior Agreements — the second paragraph on page 1

Reduced Amount — Section 4.7.1

Severance Term Date — Section 4.2.2

Term Date — Section 1

term of employment — Section 1

20

 

termination without cause — Section 4.2.1

Work Product — Section 9

               11.17 Compliance with IRC Section 409A. This Agreement is intended to comply with
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and will be interpreted
in a manner intended to comply with Section 409A of the Code. Notwithstanding anything herein to
the contrary, (i) if at the time of your termination of employment with the Company you are a
“specified employee” as defined in Section 409A of the Code (and any related regulations or other
pronouncements thereunder) and the deferral of the commencement of any payments or benefits
otherwise payable hereunder as a result of such termination of employment is necessary in order to
prevent any accelerated or additional tax under Section 409A of the Code, then the Company will
defer the commencement of the payment of any such payments or benefits hereunder (without any
reduction in such payments or benefits ultimately paid or provided to you) until the date that is
six months following your termination of employment with the Company (or the earliest date as is
permitted under Section 409A of the Code) and (ii) if any other payments of money or other benefits
due to you hereunder could cause the application of an accelerated or additional tax under Section
409A of the Code, such payments or other benefits shall be deferred if deferral will make such
payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or
other benefits shall be restructured, to the extent possible, in a manner, determined by the
Company, that does not cause such an accelerated or additional tax. To the extent any
reimbursements or in-kind benefits due to you under this Agreement constitutes “deferred
compensation” under Section 409A of the Code, any such reimbursements or in-kind benefits shall be
paid to you in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv). Each payment made
under this Agreement shall be designated as a “separate payment” within the meaning of Section 409A
of the Code. References in this Agreement
to your termination of active employment or your Effective Termination Date shall be deemed to
refer to the date upon which you have a “separation from service” with the Company and its
affiliates within the meaning of Section 409A of the Code. The Company shall consult with you in
good faith regarding the implementation of the provisions of this Section 11.17; provided that
neither the Company nor any of its employees or representatives shall have any liability to you
with respect to thereto.

21

 

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

	 	 	 	 	 
	 	TIME WARNER INC.

 	 
	 	By:  	/s/ Mark A. Wainger
 	 
	 	 	Mark A. Wainger 	 
	 	 	Senior Vice President, Global

Compensation and Benefits 	 
	 
	 	 	 
	 	 	           /s/ John K. Martin, Jr.
 	 
	 	 	John Martin 	 
	 	 	 

22

 

	 	 	 	 	 

ANNEX A

RELEASE

This Release is made by and among                                          (“You” or “Your”) and TIME WARNER INC. (the “Company”), One Time
Warner Center, New York, New York 10019 as of the date set forth below in connection with the
Employment Agreement dated                      , and effective as of                      , and the letter agreement (the “Letter Agreement”
between You and the Company dated as of                     (as so amended, the “Employment Agreement”), and in
association with the termination of your employment with the Company.

In consideration of payments made to You and other benefits to be received by You by the Company
and other benefits to be received by You pursuant to the Employment Agreement, as further reflected
in the Letter Agreement, You, being of lawful age, do hereby release and forever discharge the
Company, its successors, related companies, Affiliates, officers, directors, shareholders,
subsidiaries, agents, employees, heirs, executors, administrators, assigns, benefit plans
(including but not limited to the Time Warner Inc. Severance Pay Plan For Regular Employees),
benefit plan sponsors and benefit plan administrators of and 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”), whether known or unknown, which in any way
relate to or arise out of your employment with the Company or the termination of Your employment,
which You may now have under any federal, state or local law, regulation or order, including
without limitation, Claims related to any stock options held by You or granted to You by the
Company that are scheduled to vest subsequent to Your termination of employment and Claims under
the Age Discrimination in Employment Act (with the exception of Claims that may arise after the
date You sign this Release, Title VII of the Civil Rights Act of 1964, the Americans with
Disabilities Act of 1990, as amended, the Family and Medical Leave Act and the Employee Retirement
Income Security Act of 1974, as amended, through and including the date of this Release; provided,
however, that the execution of this Release shall not prevent You from bringing a lawsuit against
the Company to enforce its obligations under the Employment Agreement and this Release.

Notwithstanding anything to the contrary, nothing in this Release shall prohibit or restrict You
from (i) making any disclosure of information required by law; (ii) filing a charge with,
providing information to, or testifying or otherwise assisting in any investigation or proceeding
brought by, any federal regulatory or law enforcement agency or legislative body, any
self-regulatory organization, or the Company’s legal, compliance or human resources officers; (iii)
filing, testifying or participating in or otherwise assisting in a proceeding relating to an
alleged violation of any federal, state or municipal law relating to fraud or any rule or
regulation of the Securities and Exchange Commission or any self-regulatory organization; or (iv)
challenging the validity of my release of claims under the Age Discrimination in Employment Act.
Provided, however, You acknowledge that You cannot recover any monetary damages or equitable relief
in connection with a charge brought by You or through any action brought by a third party with
respect to the Claims

 

 

released and waived in the Agreement. Further, notwithstanding the above, You are not waiving or
releasing: (i) any claims arising after the Effective Date of this Agreement; (iii) any claims for
enforcement of this Agreement; (iii) any rights or claims You may have to workers compensation or
unemployment benefits; (iv) claims for accrued, vested benefits under any employee benefit plan of
the Company in accordance with the terms of such plans and applicable law; and/or (v) any claims or
rights which cannot be waived by law.

You further state that You have reviewed this Release, that You know and understand its contents,
and that You have executed it voluntarily.

You acknowledge that You have been given                      days from the date You received a copy of the Release and
to sign it. You also acknowledge that by signing this Release You may be giving up valuable legal
rights and that You have been advised to consult with an attorney. You understand that You have the
right to revoke Your consent to the Release for seven days following Your signing of the Release.
You further understand that You will cease to receive any payments or benefits under this Agreement
(except as set forth in Section 4.4 of the Agreement) if You do not sign this Release or if You
revoke Your consent to the Release within seven days after signing the Release. The Release shall
not become effective or enforceable with respect to claims under the Age Discrimination Act until
the expiration of the seven-day period following Your signing of this Release. To revoke, You send
a written statement of revocation by certified mail, return receipt requested, or by hand delivery.
If You do not revoke, the Release shall become effective on the eighth day after You sign it.

Accepted and Agreed to:

	 	 	 
	 
	 

	 	 

	 	 	 	 	 

	Dated:
	 	 	 	 
	 

	 	 

	 	 

 

 

ANNEX B

TIME WARNER CORPORATE

STANDARDS OF BUSINESS CONDUCTexv10w2

Exhibit 10.2

Time Warner

Supplemental Savings Plan

(Effective January 1, 2011)

 

Time Warner

Supplemental Savings Plan

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I. ESTABLISHMENT AND PURPOSE
	 	 	1	 
	 
	 	 	 	 
	1.1 Establishment of the Plan
	 	 	 1	 
	1.2 Description and Purpose of the Plan
	 	 	 1	 
	1.3 Effective Date
	 	 	 1	 
	 
	 	 	 	 
	ARTICLE II. DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	2.1 Definitions
	 	 	 1	 
	2.2 Gender and Number
	 	 	 4	 
	 
	 	 	 	 
	ARTICLE III. ELIGIBILITY AND PARTICIPATION
	 	 	4	 
	 
	 	 	 	 
	3.1 Participation
	 	 	 4	 
	3.2 Continued Participation
	 	 	 5	 
	 
	 	 	 	 
	ARTICLE IV. DEFERRALS
	 	 	5	 
	 
	 	 	 	 
	4.1 Participant Deferral Election
	 	 	 5	 
	4.2 Crediting of Company Deferrals
	 	 	 6	 
	4.3 Cancellation of Deferral Election
	 	 	 6	 
	4.4 Form of Payment of Deferred Amounts
	 	 	 7	 
	4.5 Vesting
	 	 	 7	 
	 
	 	 	 	 
	ARTICLE V. SUPPLEMENTAL SAVINGS ACCOUNTS
	 	 	8	 
	 
	 	 	 	 
	5.1 Supplemental Savings Account
	 	 	 8	 
	5.2 Hypothetical Investment
	 	 	 9	 
	5.3 Investment Direction
	 	 	 9	 
	5.4 Changes in Investment Direction
	 	 	 9	 
	5.5 Manner of Hypothetical Investment
	 	 	 9	 
	5.6 Participant Assumes Risk of Loss
	 	 	 9	 
	5.7 Statement of Account
	 	 	10	 
	 
	 	 	 	 
	ARTICLE VI. PAYMENT OF DEFERRED AMOUNTS
	 	 	10	 
	 
	 	 	 	 
	6.1 Payment of Deferred Amounts
	 	 	10	 
	6.2 Payment to Beneficiary or Estate in the Event of Death
	 	 	10	 
	6.3 Unforeseeable Emergency
	 	 	11	 
	6.4 Incapacity
	 	 	12	 
	6.5 Rehire of Inactive Participant
	 	 	12	 
	 
	 	 	 	 
	ARTICLE VII. ADMINISTRATION
	 	 	12	 
	 
	 	 	 	 
	7.1 The Administrative Committee
	 	 	12	 
	7.2 The Benefits Officer; Appointment
	 	 	13	 
	7.3 Delegation of Duties
	 	 	13	 
	7.4 Benefits Officer; Plan Administrator
	 	 	14	 
	7.5 Investment Committee
	 	 	14	 
	7.6 Indemnification
	 	 	14	 
	7.7 Expenses of Administration
	 	 	15	 

- i -

 

	 	 	 	 	 
	 	 	Page
	ARTICLE VIII. CLAIMS REVIEW PROCEDURE
	 	 	15	 
	 
	 	 	 	 
	8.1 Participant or Beneficiary Request for Claim
	 	 	15	 
	8.2 Insufficiency of Information
	 	 	15	 
	8.3 Request Notification
	 	 	15	 
	8.4 Extensions
	 	 	16	 
	8.5 Claim Review
	 	 	16	 
	8.6 Time Limitation on Review
	 	 	16	 
	8.7 Special Circumstances
	 	 	16	 
	8.8 Legal Actions
	 	 	16	 
	 
	 	 	 	 
	ARTICLE IX. AMENDMENT AND TERMINATION
	 	 	16	 
	 
	 	 	 	 
	9.1 Amendments
	 	 	17	 
	9.2 Termination or Suspension
	 	 	17	 
	9.3 Participants’ Rights to Payment
	 	 	17	 
	 
	 	 	 	 
	ARTICLE X. PARTICIPATING COMPANIES
	 	 	17	 
	 
	 	 	 	 
	10.1 Adoption by Other Entities
	 	 	17	 
	 
	 	 	 	 
	ARTICLE XI. GENERAL PROVISIONS
	 	 	18	 
	 
	 	 	 	 
	11.1 Participants’ Rights Unsecured
	 	 	18	 
	11.2 Non-Assignability
	 	 	18	 
	11.3 No Rights Against the Company
	 	 	18	 
	11.4 Withholding
	 	 	18	 
	11.5 No Guarantee of Tax Consequences
	 	 	18	 
	11.6 Severability
	 	 	19	 
	11.7 No Individual Liability
	 	 	19	 
	11.8 Applicable Law
	 	 	19	 
	11.9 Compliance with Section 409A of the Code
	 	 	19	 

- ii -

 

Time Warner

Supplemental Savings Plan

ARTICLE I. ESTABLISHMENT AND PURPOSE

     1.1 Establishment of the Plan. Time Warner Inc. hereby adopts this Plan, which shall
be known as the Time Warner Supplemental Savings Plan.

     1.2 Description and Purpose of the Plan. This Plan is intended to constitute a
non-qualified deferred compensation plan that, in accordance with ERISA Sections 201(2), 301(a)(3)
and 401(a)(1), is unfunded and established primarily for the purpose of providing deferred
compensation for a select group of management or highly compensated employees who earn compensation
in excess of the Code Section 401(a)(17) limits on compensation eligible for deferral under a
qualified retirement plan.

     1.3 Effective Date. This Plan is effective as of January 1, 2011.

ARTICLE II. DEFINITIONS

     2.1 Definitions. Whenever used herein, the following terms shall have the meanings as
provided for herein, unless otherwise expressly provided herein or unless a different meaning is
plainly required by the context, and when the defined meaning is intended, the term is capitalized:

     (a) “Administrative Committee” means the Administrative Committee as provided for
herein.

     (b) “Affiliate” means any entity affiliated with the Company within the meaning of
Code Section 414(b), with respect to controlled groups of corporations, Section 414(c) with respect
to trades or businesses under common control with the Company, and Section 414(m) with respect to
affiliated service groups, and any other entity required to be aggregated with the Company pursuant
to regulations under Section 414(o) of the Code.

     (c) “Assistant Benefits Officer” means the Assistant Benefits Officer as provided for
herein.

     (d) “Beneficiary” means the person or persons designated from time to time by a
Participant or Inactive Participant, by notice to the Benefits Officer, to receive any benefits
payable under the Plan after his or her death, which designation has not been revoked by notice to
the Benefits Officer at the date of the Participant’s or Inactive Participant’s death. Such notice
shall be in a form as required by the Benefits Officer or acceptable to such officer which is
properly completed and delivered to the Benefits Officer or such officer’s designee. Notice to the
Benefits Officer shall be deemed to have been given when it is actually received by or on behalf of
such officer.

 

 

     (e) “Benefits Officer” means the Benefits Officer as provided for herein.

     (f) “Board” means the Board of Directors of the Company or a committee thereof
authorized to act in the name of the Board.

     (g) “Change in Control” means there is a change in the ownership or effective control
of the relevant Company or in the ownership of a substantial portion of the assets of the relevant
Company as defined under, and as determined in accordance with, Treasury Regulation §
1.409A-3(i)(5) and any other applicable guidance issued under Code Section 409A. For purposes of
this Plan, in order for a Change in Control to have occurred with respect to a Participant, the
relevant Company is determined for each Participant under Treasury Regulation § 1.409A-3(i)(5)(ii)
and any other applicable guidance issued under Code Section 409A.

     (h) “Code” means the Internal Revenue Code of 1986, as amended.

     (i) “Company” means Time Warner Inc. or any successor thereto.

     (j) “Company Discretionary Deferral” means the deferrals, if any, credited to
Participants’ Supplemental Savings Accounts in accordance with Section 4.2(b).

     (k) “Company Matching Deferral” means the deferrals credited to Participants’
Supplemental Savings Accounts in accordance with Section 4.2(a).

     (l) “Compensation” means the Participant’s “Compensation,” paid by an Employing
Company, as defined in the Qualified Plan, determined without regard to the Compensation Limit, and
without regard to any deferrals or the foregoing of compensation under this or any other plan of
deferred compensation maintained by the Employing Company. Notwithstanding anything to the
contrary herein, the Benefits Officer may amend the definition of “Compensation” to include
additional items of compensation; provided, however, that any such amendment must be adopted by the
Benefits Officer prior to the beginning of the Plan Year in which the compensation is otherwise to
be earned.

     (m) “Compensation Limit” means the compensation limit of Section 401(a)(17) of the
Code, as adjusted under Section 401(a)(17)(B) of the Code for increases in the cost of living.

     (n) “Disability” means a permanent and total disability as determined by the Social
Security Administration or any disability for which a Participant is receiving monthly benefits
under the provisions of the Time Warner Long Term Disability Plan or, in the case of an employee
covered by a long term disability plan of an Affiliate, under the provisions of such plan,
whichever shall occur first.

     (o) “Eligible Employee” means an “Eligible Employee” as defined in the Qualified Plan.

     (p) “Employee” means an “Employee” as defined in the Qualified Plan.

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     (q) “Employing Company” means the Company and each Affiliate which has been authorized
by the Benefits Officer to participate in the Plan and has adopted the Plan. When the term
“Company” is used with respect to an individual Participant, it shall refer to the specific
Employing Company at which the Participant is employed, unless otherwise required by the context.

     (r) “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     (s) “Excess Compensation” means the Compensation otherwise payable to an Eligible
Employee in excess of the Compensation Limit (or such other higher dollar limitation as may be set
by the Benefits Officer in his or her sole discretion for any Plan Year).

     (t) “Inactive Participant” means a Participant who had previously deferred amounts
credited to a Supplemental Savings Account and such Participant is no longer eligible to
participate hereunder, including due to a Benefits Officer designation of his or her ineligibility
for a future Plan Year or a Separation From Service with the Company and any Affiliate, in either
case where the individual’s Supplemental Savings Account has not been fully distributed.

     (u) “Investment Committee” means the Investment Committee as provided for herein.

     (v) “Investment Direction” means a Participant’s or an Inactive Participant’s
direction to the recordkeeper of the Plan, in the form and manner prescribed by the Benefits
Officer, in accordance with directions made by telephone, through the intranet of the applicable
Employing Company or through the Internet, directing which Investment Funds will be credited with
his or her deferrals and transfers of all or part of the deferred amounts and any earnings thereon
from other Investment Funds and certain employment agreements, as provided for herein.

     (w) “Investment Funds” means those hypothetical targeted investment options, as
determined from time to time by the Investment Committee as measurements of the rate of return to
be credited to (or charged against) Participants’ Supplemental Savings Accounts.

     (x) “Matched Deferrals” means the pre-tax deferrals of Excess Compensation made by a
Participant under this Plan in accordance with Section 4.1(a).

     (y) “Participant” means any Eligible Employee who is eligible to participate in the
Plan in accordance with Article III. Except for those provisions related to deferral
opportunities, references herein to a Participant shall be deemed to include references to Inactive Participants,
unless otherwise required by the context.

     (z) “Plan” means this Plan, the Time Warner Supplemental Savings Plan, as provided for
herein and as it may be amended from time to time.

     (aa) “Plan Year” means the calendar year.

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     (bb) “Qualified Plan” means the Time Warner Savings Plan, as amended from time to
time.

     (cc) “Separation From Service” means termination of employment with the Company or an
Affiliate that also constitutes a “separation from service” under Section 409A(a)(2)(A)(i) of the
Code; provided, however, that for purposes for determining the controlled group of entities
comprising the Participant’s employer under Treas. Reg. Section 1.409A-1(h)(3), the determination
shall be made pursuant to the test for controlled groups under Sections 414(b) and (c) of the Code,
using a common control ownership threshold of “at least 80%” ownership, rather than “at least 50%”
ownership. For purposes of this Plan, a “Separation From Service” occurs on the first day of the
seventh month following the date a Participant first begins a disability leave of absence. For
this purpose, a disability leave of absence refers to a leave due to the Participant’s inability to
perform the duties of his or her position of employment or any substantially similar position of
employment by reason of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period of not less than six
months.

     (dd) “Supplemental Savings Account” means the separate account established under
Article V of the Plan for each Participant and Inactive Participant representing amounts deferred
by or for the benefit of a Participant pursuant to Article IV, together with credited earnings (or
losses) that reflect the Investment Funds applicable with respect to each Participant’s deferred
amounts.

     (ee) “Unmatched Deferrals” means the pre-tax deferrals made by a Participant under
this Plan in accordance with Section 4.1(b).

     (ff) “Valuation Date” means, with respect to the Investment Funds, each business day
when the New York Stock Exchange is open or any other date designated from time to time by the
Benefits Officer for determining the value of a Participant’s Supplemental Savings Account for any
specified purpose under the Plan, including the determination of amounts available for
unforeseeable emergency withdrawals or other distributions on account of Separation From Service,
death, or any reason otherwise allowed under the Plan.

     2.2 Gender and Number. Except when otherwise indicated by the context, any masculine
terminology used herein also shall include the feminine and the feminine shall include the
masculine, and the use of any term herein in the singular may also include the plural and the
plural shall include the singular.

ARTICLE III. ELIGIBILITY AND PARTICIPATION

     3.1 Participation. Subject to Section 3.2, an Eligible Employee shall become a
Participant in the Plan if, with respect to any Plan Year, the Eligible Employee earns

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Compensation
during the Plan Year in excess of the Compensation Limit (or such other higher dollar limitation as
may be set by the Benefits Officer in his or her sole discretion for that Plan Year before the
beginning of such Plan Year), and the Eligible Employee elects to defer a portion of such Excess
Compensation at such time and in such manner as determined by the Benefits Officer pursuant to
Article IV. To become a Participant in this Plan, each Eligible Employee must complete such other
forms or applications as required by the Benefits Officer.

     3.2 Continued Participation. Once an Eligible Employee becomes a Participant, he or
she shall continue to be eligible to participate for all future years until his or her Separation
From Service or death or unless and until the Benefits Officer shall designate that individual or
the individual’s Employing Company as ineligible to participate for a future Plan Year or the
Employing Company elects not to continue to participate in the Plan with respect to its employees
for a future Plan Year. If a Participant becomes ineligible to participate for future deferrals
under this Plan, he or she shall become an Inactive Participant and retain all the rights described
under this Plan with respect to deferrals previously made while an active Participant.

ARTICLE IV. DEFERRALS

     4.1 Participant Deferral Election. Subject to the conditions as provided for in this
Plan, a Participant may elect to defer amounts hereunder as follows:

     (a) Matched Deferrals. An Eligible Employee may elect to defer Matched Deferrals
under this Plan in whole percentages up to six percent (6%) of that portion of his or her Excess
Compensation that does not exceed an amount equal to $500,000 less the then applicable Compensation
Limit.

     (b) Unmatched Deferrals. An Eligible Employee may elect to defer Unmatched Deferrals
under this Plan in whole percentages up to: (i) fifty percent (50%) of that portion of his or her
Excess Compensation referred to in Section 4.1(a), which deferrals are reduced by the amount of his
or her Matched Deferrals and (ii) ninety percent (90%) of that portion of his or her Compensation
that exceeds $500,000.

     (c) Deferral Procedures for Matched and Unmatched Deferrals. Except as provided in
Section 4.1(d), all elections under Section 4.1(a) and Section 4.1(b) must be made at such time and
in such manner as specified by the Benefits Officer prior to the beginning of each Plan Year in
which such Excess Compensation is otherwise earned. Once a Matched Deferral or an Unmatched
Deferral election is made (or deemed to be made) for a Plan Year, it shall remain in effect for all
future Excess Compensation otherwise payable in all future pay periods that otherwise begin during
that Plan Year. Participant Matched Deferrals and Unmatched Deferrals shall be credited to the
Participant’s Supplemental Savings Account at such times and in such manner as determined by the
Benefits Officer, in his or her sole discretion.

     (d) Deferral Procedures for Newly Eligible Employees. In the case of an Employee who
first becomes eligible to participate in the Plan during a Plan Year (and is not eligible for any
other plan with which this Plan is aggregated for purposes of Code Section 409A), elections under

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Sections 4.1(a) and 4.1(b) for such Plan Year must be made within 30 days of the date the Employee
first becomes eligible to participate in the Plan, and shall apply only to amounts paid for
services to be performed after the date of such election.

     (e) Payroll Periods Subject to Deferral Elections. If a Company’s normal payroll
practice is such that the last payroll beginning in a Plan Year covers services performed at the
end of that Plan Year and into the beginning of the next Plan Year, then any Participant deferral
elections made under Sections 4.1(a) and 4.1(b) for a Plan Year will apply to all payroll periods
ending in that Plan Year.

     4.2 Crediting of Company Deferrals. The Company shall credit each Participant’s
Supplemental Savings Account with the additional deferrals described in this Section 4.2.

     (a) Company Matching Deferrals. Any Participant who has elected to make a deferral
under Section 4.1(a) for a Plan Year will be credited with a Company Matching Deferral for such
Plan Year equal to one hundred and thirty-three percent (133%) of the Participant’s Matched
Deferrals up to the first three percent (3%) of the Participant’s Excess Compensation that does not
exceed $500,000 plus one hundred percent (100%) of the Participant’s Matched Deferrals up to the
next three percent (3%) of the Participant’s Excess Compensation that does not exceed $500,000. In
all events, the maximum amount of Company Matching Deferrals for any Participant who has made the
maximum amount of Matched Deferrals shall be an amount equal to seven percent (7%) of the
Participant’s Excess Compensation not in excess of $500,000. Such Company Matching Deferrals shall
be credited to the Participant’s Supplemental Savings Account at such times and in such manner as
the Benefits Officer, in his or her sole discretion determines.

     (b) Company Discretionary Deferrals. The Company may, in its sole discretion, provide
for additional credits to all or some Participants’ Supplemental Savings Accounts at any time.
Such amounts shall be distributed in the form of distribution otherwise in effect for each affected
Participant with respect to any deferrals made for the Plan Year under Section 4.4. In
the absence of any deferrals for such Plan Year for a Participant, the additional credits shall be
paid in the form of a single sum distribution.

     4.3 Cancellation of Deferral Election.

     (a) Hardship Distribution Under the Plan. Upon a distribution under Section 6.3 due
to an unforeseeable emergency, the Participant’s deferral election(s) made pursuant to Section 4.1
shall be cancelled effective as of the payroll period following the distribution under Section
6.3(d). Such cancellation shall be effective for the remainder of the Plan Year and any subsequent
deferral election by the Participant must be submitted in accordance with Section 4.1.

     (b) Hardship Distribution Under Qualified Plan. Upon a hardship distribution pursuant
to Treasury Regulation § 1.401(k)-1(d)(3) under a qualified plan maintained by the Company or any
of its Affiliates, the Participant’s deferral election(s) made pursuant to Section 4.1 shall be
cancelled for the Plan Year in which the hardship distribution occurred and any subsequent deferral
election by the Participant must be submitted in accordance with Section 4.1 but will not be
effective for

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such subsequent Plan Year until such time as the Code Section 401(k) required
cancellation period for deferrals has ended.

     4.4 Form of Payment of Deferred Amounts. At the same time as the election made
pursuant to Section 4.1, and subject to the death benefit provisions of Section 6, each Participant
must also elect the manner in which his or her deferred amounts for each Plan Year will be paid.

     (a) Normal Form of Distribution — Single Sum Payments. Except as provided in Section
4.4(b), all deferred amounts for each Plan Year that are otherwise payable to a Participant
hereunder shall be paid in the form of a single sum payment.

     (b) Optional Form of Distribution. In lieu of a single sum payment, a Participant may
elect to have all deferred amounts for each Plan Year that are otherwise payable to a Participant
hereunder paid in the form of one hundred twenty (120) monthly installment payments. Unless
specifically elected otherwise for a Plan Year, payments of all deferred amounts will be made in a
single sum payment.

     (c) Mandatory Distribution — Single Sum Payments. Notwithstanding any other
provision of this Section 4.4, if the value of the Participant’s Supplemental Savings Account is
less than $100,000 as of the Valuation Date following the Participant’s Separation From Service
payment, of all amounts payable to the Participant hereunder shall be made in a single sum payment.

     4.5 Vesting. Participants shall become vested in the deferrals credited to their
Supplemental Savings Accounts in accordance with this Section 4.5.

     (a) A Participant shall be vested at all times in his or her Matched Deferrals and Unmatched
Deferrals.

     (b) A Participant shall become vested in Company Matching Deferrals after completing “Periods
of Service” of at least two years or two “Years of Service” (as those terms are defined under the
Qualified Plan); provided, however, that Company Matching Deferrals credited to a Participant’s
Supplemental Savings Account shall immediately vest upon the occurrence of: (i) the Participant’s
death; (ii) the Participant’s Disability; (iii) the date the Participant attains age 65; or (iv) a
Change in Control.

     (c) Subject to approval of the Benefits Officer, special vesting provisions under the terms of
a severance plan or program under which a Participant qualifies may apply to vesting of the
Participant’s Company Matching Deferrals and any earnings or losses attributable thereto.

     (d) A Participant shall become vested in Company Discretionary Deferrals pursuant to the
vesting schedule established by the Company at the time such amounts are credited to his or her
Supplemental Savings Account; provided, however, that, notwithstanding the provisions of

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any such
vesting schedule, amounts credited to a Participant’s Supplemental Savings Account shall
immediately vest upon the occurrence of a Change in Control.

     (e) Subject to subsections (a), (b) and (c) herein, a forfeiture of a Participant’s unvested
Company Matching Contributions and unvested Company Discretionary Deferrals shall occur on the date
of the Participant’s Separation From Service if he or she is not otherwise vested in any such
amounts credited to his or her Supplemental Savings Account. In addition, a Participant who is
re-employed by an Employing Company shall not be entitled to restore to his or her Supplemental
Savings Account any amounts previously forfeited under the Plan or otherwise distributed or
scheduled to be distributed from the Plan.

ARTICLE V. SUPPLEMENTAL SAVINGS ACCOUNTS

     5.1 Supplemental Savings Account.

     (a) A Supplemental Savings Account shall be established for each Participant who is credited
with deferred amounts under Article IV. A Participant’s or an Inactive Participant’s Supplemental
Savings Account shall consist of all such deferred amounts, increased or decreased by any gains or
losses thereon.

     (b) The Company (either directly or indirectly through a third-party recordkeeper or a
combination thereof) shall maintain the records of Supplemental Savings Accounts for all
Participants and Inactive Participants.

     (c) All payments made under the Plan shall be made directly by the Company from its general
assets subject to the claims of any creditors and no deferred compensation under the Plan
shall be segregated or earmarked or held in trust. The Plan is an unfunded and unsecured
contractual obligation of the Company. Participants, Inactive Participants, and Beneficiaries
shall be unsecured creditors of the Company with respect to all obligations owed to them under the
Plan. Participants, Inactive Participants, and Beneficiaries shall not have any interest in any
fund or specific asset of the Company by reason of any amount credited to a Supplemental Savings
Account, nor shall any such person have any right to receive any distribution under the Plan except
as explicitly stated herein. The Company shall not designate any funds or assets to specifically
provide for the distribution of the value of a Supplemental Savings Account or issue any notes or
security for the payment thereof. Any asset or reserve that the Company may purchase or establish
shall not serve as security to Participants, Inactive Participants, and Beneficiaries for the
performance of the Company under the Plan.

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     5.2 Hypothetical Investment.

     (a) For crediting rate purposes, amounts credited to a Participant’s or an Inactive
Participant’s Supplemental Savings Account shall be deemed to be invested according to his or her
Investment Direction in one or more of all of the similarly named funds offered under the Time
Warner Defined Contribution Plans Master Trust; provided, however, that any brokerage investment
alternative available under such master trust, if any, shall not be an available investment
alternative under this Plan. For any period, the deemed return on each of these Investment Funds
shall be the same as the return for such period on each similarly named fund offered under the Time
Warner Defined Contribution Plans Master Trust.

     (b) Notwithstanding anything to the contrary herein, the Company, by action of the Investment
Committee or the Board, may add to, decrease or change the Investment Funds offered under the Plan,
at any time and for any reason. Participants, Inactive Participants, and Beneficiaries shall not
have the right to continue any particular Investment Fund option.

     (c) The Company shall be under no obligation to invest amounts corresponding to any Investment
Direction chosen by Participants or Inactive Participants. Any such allocation to any Supplemental
Savings Account shall be made solely for the purpose of determining the value of such account under
the Plan.

     5.3 Investment Direction. Deferrals shall be credited to the Investment Funds in
accordance with a Participant’s or an Inactive Participant’s Investment Directions. A Participant
or an Inactive Participant shall direct that his or her deferrals be applied, in multiples of one
percent, to deemed investments in any or all of the Investment Funds.

     5.4 Changes in Investment Direction. A Participant or an Inactive Participant may
change an Investment Direction once each calendar month with respect to existing Supplemental
Savings Account balances; provided, however, that one additional Investment Direction may be made
in each calendar month in which any Investment Fund is made available, or ceases to be available
with respect to each of new deferrals and previous deferrals and any earnings thereon. A
Participant may make Investment Directions with respect to future deferrals as frequently as permitted pursuant to administrative
rules adopted by the Benefits Officer.

     5.5 Manner of Hypothetical Investment.

     (a) For purposes of the hypothetical investment under Section 5.2, deferred compensation shall
be considered to be invested on the date the recordkeeper of the Plan records the deferral amount.

     (b) As of each Valuation Date, the recordkeeper of the Plan shall determine the value of each
Participant’s, Inactive Participant’s, or Beneficiary’s Supplemental Savings Account.

     5.6 Participant Assumes Risk of Loss. Each Participant, Inactive Participant, and
Beneficiary assumes the risk in connection with any decrease in value of his or her Supplemental
Savings Account deemed invested in the Investment Funds.

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     5.7 Statement of Account. A statement of account shall be made available through the
recordkeeper’s website and may be viewed and printed by a Participant or an Inactive Participant at
any time. Upon request, as soon as reasonably practicable after the end of each calendar quarter,
a statement of account shall be sent to each Participant and Inactive Participant with respect to
the value of his or her Supplemental Savings Account as of the end of such quarter.

ARTICLE VI. PAYMENT OF DEFERRED AMOUNTS

     6.1 Payment of Deferred Amounts.

     (a) Payment of a Participant’s Supplemental Savings Account, including accumulated
hypothetical earnings (or losses), shall be paid (or, in the case of installment distributions,
commence to be paid) on the fifteenth day of the seventh month following the Participant’s
Separation From Service (or as soon as administratively practicable thereafter), and any subsequent
monthly installment payments shall be paid on the fifteenth day of each subsequent month thereafter
(or as soon as administratively practicable thereafter). Subject to Section 4.4(c), the payment(s)
shall be made in the manner otherwise elected by the Participant under Section 4.4.

     (b) The amount of any single sum payment shall equal the Participant’s distributable
Supplemental Savings Account, determined as of the Valuation Date immediately preceding the payment
date.

     (c) The amount of any monthly installment payment shall equal the Participant’s distributable
Supplemental Savings Account, determined as of the Valuation Date immediately preceding the payment
date multiplied by a fraction, the numerator of which is one and the denominator of which is the
number of monthly installment payments remaining to be paid.

     6.2 Payment to Beneficiary or Estate in the Event of Death. Notwithstanding the
provisions for payment described in Section 6.1 above, if a Participant or an Inactive Participant
dies before payment of his or her Supplemental Savings Account under the Plan or after commencement
of installment payments and prior to the payment of all amounts credited to his or her Supplemental
Savings Account, the value of such Participant’s or Inactive Participant’s Supplemental Savings
Account shall be determined as of the Valuation Date coincident with or immediately prior to the
date that the Benefits Officer commences the processing of the distribution, after both a written
notice of his or her death and a death certificate have been received by the Benefits Officer. In
all events, such account shall be distributed in a single sum as soon as practicable to the
Participant’s or Inactive Participant’s Beneficiary (or, if no person has been designated or if no
person so designated survives the Participant or Inactive Participant, to such Participant’s or
Inactive Participant’s estate or if such Beneficiary survives the Participant or Inactive
Participant, but dies prior to payment, to such Beneficiary’s estate) prior to the end of the Plan
Year of the Participant’s or Inactive Participant’s death (or within 90 days after the date of
death, if later, provided, however, that the Beneficiary (or estate) shall have no right to
designate the taxable year of payment). In case any Participant or Inactive Participant and his or
her Beneficiary die in or as a result of a common accident or disaster and under such circumstances
as to make it impossible to determine which of them was the last to die, the Participant or
Inactive Participant

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shall be deemed to have survived his or her Beneficiary. Distributions
hereunder shall be subject to such administrative and procedural requirements and forms as the
Benefits Officer in such officer’s discretion may require.

     6.3 Unforeseeable Emergency. At any time before the time an amount is otherwise
payable hereunder, a Participant (or the Participant’s Beneficiary) may request, pursuant to such
procedures prescribed by the Benefits Officer in his or her sole discretion, a single sum
distribution of all or a portion of the amounts credited to his or her Supplemental Savings Account
due to the Participant’s (or the Beneficiary’s) severe financial hardship, subject to the following
requirements as provided for in this Section 6.3.

     (a) Such distribution shall be made, in the sole discretion of the Benefits Officer, in the
case of an unforeseeable emergency, which shall be limited to a severe financial hardship to the
Participant resulting from an illness or accident of the Participant, the Participant’s spouse, the
Participant’s Beneficiary, or of a Participant’s dependent (as defined in Code Section 152, without
regard to Code Sections 152(b)(1), (b)(2), and (d)(1)(B)), loss of the Participant’s property due
to casualty (including the need to rebuild a home following damage to a home not otherwise covered
by insurance, for example, as a result of a natural disaster); or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of the Participant.
Examples of events that may constitute an unforeseeable emergency include the imminent foreclosure
of or eviction from the Participant’s primary residence; the need to pay for medical expenses,
including non-refundable deductibles, as well as for the costs of prescription drug medication; and
the need to pay for the funeral expenses of the Participant’s spouse, the Participant’s
Beneficiary, or the Participant’s dependent (as defined in Code Section 152, without regard to Code
Sections 152(b)(1), (b)(2), and (d)(1)(B)).

     (b) Whether a Participant is faced with an unforeseeable emergency will be determined based on
the relevant facts and circumstances of each case, but, in any case, a distribution on account of
an unforeseeable emergency may not be made to the extent that such emergency is or may be relieved:

          (i) through reimbursement or compensation by insurance or otherwise,

          (ii) by liquidation of the individual’s assets, to the extent the
liquidation of such assets would not itself cause severe financial hardship, or

          (iii) by cessation of deferrals under the Plan.

Examples of circumstances that are not considered to be unforeseeable emergencies include the need
to send an individual’s child to college or the desire to purchase a home.

     (c) In all events, the amount available for distribution on account of an unforeseeable
emergency pursuant to this Section 6.3 shall be limited to the amount reasonably necessary to
satisfy the emergency need (which may include amounts necessary to pay any federal, state, local,
or foreign income taxes or penalties reasonably anticipated to result from the distribution), and
shall be determined in accordance with Code Section 409A and the regulations thereunder.

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The
Benefits Officer may require such evidence of the individual’s severe financial hardship as it
deems appropriate. The Benefits Officer shall consider any requests for payment under this Section
6.3 in accordance with the standards of interpretation described in Code Section 409A and the
regulations and other guidance thereunder.

     (d) All distributions under this Section 6.3 shall be made from the Participant’s Supplemental
Savings Account as soon as practicable after the Benefits Officer has approved the distribution and
the amounts credited to the Participant’s Supplemental Savings Account shall be reduced on a pro
rata basis among his or her elected Investment Options to reflect the accelerated distribution.

     6.4 Incapacity. The Benefits Officer may direct that any amounts distributable under
the Plan to a person under a legal disability be made to (and be withheld until the appointment of)
a representative qualified pursuant to law to receive such payment on such person’s behalf.

     6.5 Rehire of Inactive Participant. If an Inactive Participant returns to work with
the Company or an Affiliate, distribution of his or her remaining Supplemental Savings Account with
respect to amounts deferred prior to the date of the Separation From Service shall continue to be
made as if the Inactive Participant has not returned to work.

ARTICLE VII. ADMINISTRATION

     7.1 The Administrative Committee.

     (a) Appointment of Administrative Committee. The Plan shall be administered by the
Benefits Officer. In addition, in the event a claim for benefits is denied, the claim shall be
reviewed by the Administrative Committee of the Time Warner Savings Plan as provided for in Section
14.1 of such Savings Plan. Neither the Benefits Officer nor any member of the Administrative
Committee shall receive any compensation for his or her services as such. Participants may be
members of the Administrative Committee but may not participate in any decision affecting their own
account in any case where the Administrative Committee may take discretionary action in the
administration of the Plan.

     (b) Quorum and Actions of Administrative Committee. A majority of the members of the
Administrative Committee shall constitute a quorum for the transaction of business. All
resolutions or other action taken by the Administrative Committee shall be by a vote of a majority
of its members present at any meeting or, without a meeting, by instrument in writing signed by all
its members. Members of the Administrative Committee may participate in a meeting of such
Administrative Committee by means of a conference telephone or similar communications equipment
that enables all persons participating in the meeting to hear each other, and such participation in
a meeting shall constitute presence in person at the meeting.

     (c) Standard of Review. The Administrative Committee shall be responsible for the
claims review functions as provided for in Article VIII. In exercising such claims review
functions, the Administrative Committee shall have exclusive authority and sole and absolute
discretion to interpret the Plan, to determine eligibility for benefits and the amount of benefit

 - 12 - 

 

payments and to make any factual determinations, resolve factual disputes and decide all matters
arising in connection with such claim and the interpretation, administration and operation of the
Plan or with the determination of reviewing a claim for eligibility for benefits or the amount of
benefit payments. All its rules, interpretations and decisions shall be conclusive and binding on
the Company and on Participants, Inactive Participants and their Beneficiaries to the extent
permitted by law.

     (d) Delegation by Administrative Committee. The Administrative Committee may delegate
any of its powers or duties to others as it shall determine and may retain counsel, agents and such
clerical and accounting, actuarial or other services as they may require in carrying out the
provisions of the Plan.

     (e) Reliance on Information. The Administrative Committee, Benefits Officer, and the
Investment Committee (as described below) may rely conclusively upon all tables, valuations,
certificates, opinions and reports furnished by any actuary, accountant, controller, counsel or
other person who is employed or engaged for any purpose in connection with the administration of
the Plan.

     (f) No Liability for Acts of Others. Neither the Administrative Committee, Benefits
Officer, or Investment Committee nor any member of the Board or the board of directors (or
governing body) of an Affiliate and no employee of the Company or any Affiliate shall be liable
for any act or action hereunder, whether of omission or commission, by any other member or
employee or by any agent to whom duties in connection with the administration of the Plan have been
delegated or for anything done or omitted to be done in connection with the Plan.

     (g) Committee Records. The Administrative Committee and Benefits Officer shall keep a
record of all Plan proceedings and of all payments directed by it to be made to or on behalf of
Participants, Inactive Participants, or Beneficiaries or payments made by it for expenses or
otherwise.

     7.2 The Benefits Officer; Appointment. Subject to Sections 7.1, 7.3, and 7.4, the
day-to-day operations of the Plan shall be administered by the Benefits Officer of the Time Warner
Savings Plan as provided for in Section 14.5 of such Savings Plan. The Benefits Officer may not
serve concurrently on the Administrative Committee or the Investment Committee. The Benefits
Officer may resign at any time by giving notice to the Chief Executive Officer of the Company Any
such resignation shall take effect at the date of receipt of such notice or at any later date
specified therein; and, unless otherwise specified therein, the acceptance of such resignation
shall not be necessary to make it effective. A Participant may be appointed as the Benefits
Officer. The Benefits Officer shall not receive compensation for his or her services as such.

     7.3 Delegation of Duties. The Benefits Officer may authorize others to execute or
deliver any instrument or to make any payment in his or her behalf and may delegate any of his or
her powers or duties to others as he or she shall determine, including the delegation of such
powers and duties to an Assistant Benefits Officer who shall be appointed by the Benefits Officer.
In the event of such delegation, the Assistant Benefits Officer shall for all purposes of the Plan
be considered the Benefits Officer and all references to the Benefits Officer shall be deemed to be
references to such Assistant Benefits Officer when acting in such capacity. The

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Benefits Officer and the Assistant Benefits Officer may retain such counsel, agents and clerical, medical,
accounting and actuarial services as they may require in carrying out their functions.

     7.4 Benefits Officer; Plan Administrator. In addition to its settlor and ministerial
functions on behalf of the Company as provided for in the Plan, including, without limitation,
amending and modifying the terms of the Plan and performing ministerial functions with respect to
the Plan, the Benefits Officer shall be the administrator of the Plan and shall have all powers
necessary to administer the Plan except to the extent that any such powers are vested in the
Administrative Committee or any other individual or committee as authorized by the Plan. The
Benefits Officer may from time to time establish rules for the administration of the Plan. Other
than with respect to claims review as described in Article VIII (which shall be done by the
Administrative Committee), the Benefits Officer shall have exclusive authority and sole and
absolute discretion to interpret the Plan, to determine eligibility for benefits and the amount of
benefit payments and to make any factual determinations, resolve factual disputes and decide all
matters arising in connection with the interpretation, administration and operation of the Plan or
with the determination of eligibility for benefits or the amount of benefit payments. All its
rules, interpretations and decisions shall be conclusive and binding on the Company and on Participants, Inactive Participants and their
Beneficiaries to the extent permitted by law.

     7.5 Investment Committee.

     (a) Appointment. The Investment Committee of the Time Warner Savings Plan as provided
for in Section 14.8 of such Savings Plan shall take all prudent action necessary or desirable for
the purpose of carrying out the overall investment policy for the Plan (with respect to Investment
Funds made available as targeted hypothetical investments).

     (b) Quorum and Actions of Investment Committee. A majority of the members of the
Investment Committee at the time in office shall constitute a quorum for the transaction of
business. All resolutions or other action taken by the Investment Committee shall be by vote of a
majority of its members present at any meeting or, without a meeting, by instrument in writing
signed by all its members. Members of the Investment Committee may participate in a meeting of such
Investment Committee by means of a conference telephone or similar communications equipment that
enables all persons participating in the meeting to hear each other, and such participation in a
meeting shall constitute presence in person at the meeting.

     (c) Investment Committee Chairman; Delegation by Investment Committee. The members of
the Investment Committee shall elect one of their number as chairman and may elect a secretary who
may, but need not, be one of their number. The Investment Committee may delegate any of its powers
or duties among its members or to others as it shall determine. It may authorize one or more of its
members to execute or deliver any instrument or to make any payment in its behalf. It may employ
such counsel, agents and clerical, accounting, actuarial and recordkeeping services as it may
require in carrying out the provisions of the Plan.

     7.6 Indemnification. The Company shall, to the fullest extent permitted by law,
indemnify each director, officer or employee of the Company or any Affiliate (including the heirs,
executors, administrators and other personal representatives of such person) and each member of the
Administrative Committee, Investment Committee and Benefits Officer against

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expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement, actually and reasonably incurred
by such person in connection with any threatened, pending or actual suit, action or proceeding
(whether civil, criminal, administrative or investigative in nature or otherwise) in which such
person may be involved by reason of the fact that he or she is or was serving any employee benefit
plans of the Company or any Affiliate in any capacity at the request of such company.

     7.7 Expenses of Administration. Any expense incurred by the Company, the
Administrative Committee, the Investment Committee or the Benefits Officer relative to the
administration of the Plan shall be paid by the Company and any of its participating Affiliates in
such proportions as the Company may direct.

ARTICLE VIII. CLAIMS REVIEW PROCEDURE

     8.1 Participant or Beneficiary Request for Claim. Any request for a benefit payable
under the Plan shall be made in writing by a Participant, Inactive Participant or Beneficiary (or
an authorized representative of any of them), as the case may be, and shall be paid in accordance
with the otherwise applicable Plan terms.

     8.2 Insufficiency of Information. In the event a request for a benefit that is not
otherwise paid contains insufficient information otherwise required by the Plan, the Benefits
Officer shall, within a reasonable period after receipt of such request, send a written
notification to the claimant setting forth a description of any additional material or information
necessary for the claimant to perfect the claim and an explanation of why such material is
necessary. The claimant’s request shall be deemed filed with the Administrative Committee on the
date the Administrative Committee or Benefits Officer receives in writing such additional
information.

     8.3 Request Notification. The Administrative Committee shall make a determination
with respect to a request for benefits that was previously denied within ninety (90) days after
such request is filed (or within such extended period prescribed below). The Administrative
Committee shall notify the claimant whether his or her claim has been granted or whether it has
been denied in whole or in part. Such notification shall be in writing and shall be delivered, by
mail or otherwise, to the claimant within the time period described above. If the claim is denied
in whole or in part, the written notification shall set forth, in a manner calculated to be
understood by the claimant:

	 	(i)	 	The specific reason or reasons for the denial;
	 
	 	(ii)	 	Specific reference to pertinent provisions of the Plan on which
the denial is based; and
	 
	 	(iii)	 	An explanation of the Plan’s claim review procedure.

          Failure by the Administrative Committee to give notification pursuant to this Section within
the time prescribed shall be deemed a denial of the request for the purpose of proceeding to the
review stage.

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     8.4 Extensions. If special circumstances require an extension of time for processing
the claim, the Administrative Committee shall furnish the claimant with written notice of such
extension. Such notice shall be furnished prior to the termination of the initial ninety (90)-day
period and shall set forth the special circumstances requiring the extension and the date by which
the Administrative Committee expects to render its decision. In no event shall such extension
exceed a period of ninety (90) days from the end of such initial ninety (90)-day period.

     8.5 Claim Review. A claimant whose request for benefits has been denied by the
Administrative Committee in whole or in part, or his or her duly authorized representative, may,
within sixty (60) days after written notification of such denial, file with a reviewer appointed for such purpose by the Administrative Committee (or, if
none has been appointed, with the Administrative Committee itself), with a copy to the
Administrative Committee, a written request for a review of his or her claim. Such written request
shall be deemed filed upon receipt of same by the reviewer.

     8.6 Time Limitation on Review. A claimant who timely files a request for review of
his or her claim for benefits, or his or her duly authorized representative, may review pertinent
documents (upon reasonable notice to the reviewer) and may submit the issues and his or her
comments to the reviewer in writing. The reviewer shall, within sixty (60) days after receipt of
the written request for review (or within such extended period prescribed below), communicate its
decision in writing to the claimant and/or his or her duly authorized representative setting
forth, in a manner calculated to be understood by the claimant, the specific reasons for its
decision and the pertinent provisions of the Plan on which the decision is based. If the decision
is not communicated within the time prescribed, the claim shall be deemed denied on review.

     8.7 Special Circumstances. If special circumstances require an extension of time
beyond the sixty (60)-day period described above for the reviewer to render his or her decision,
the reviewer shall furnish the claimant with written notice of the extension required. Such notice
shall be furnished prior to the termination of the initial sixty (60)-day period and shall set
forth the special circumstances requiring the extension period. In no event shall such extension
exceed a period of sixty (60) days from the end of such initial sixty (60)-day period.

     8.8 Legal Actions. In the event a claimant’s request for benefits is denied (or
deemed denied) under Section 8.6, such claimant may bring legal action. Evidence presented in
such action shall be limited to the administrative record reviewed by the Administrative Committee
in connection with its determination of the claimant’s request under this Article VIII. The
administrative record shall include evidence timely presented to the Administrative Committee by
the claimant, or his duly authorized representative, pursuant to this Article VIII. No legal
action at law or equity to recover benefits under the Plan may be filed unless the claimant has
complied with and exhausted the administrative procedures under this Article VIII, nor may such
legal action be filed more than six (6) months after the date on which the claim is denied (or
deemed denied) under Section 8.6.

ARTICLE IX. AMENDMENT AND TERMINATION

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     9.1 Amendments. The Company (by action of the Board) or the Benefits Officer (for the
Company and the other Employing Companies) may at any time amend the Plan.

     9.2 Termination or Suspension. The continuance of the Plan and the ability of an
Eligible Employee to make a deferral for any Plan Year are not assumed as contractual obligations
of the Company or any other Employing Company. The Company reserves the right (for itself and the
other Employing Companies) by action of the Board or the Benefits Officer, to terminate or suspend the Plan, or to terminate or
suspend the Plan with respect to itself or an Employing Company, to the extent permitted without
adverse tax consequences under Treas. Reg. § 1.409A-3(j)(4)(ix) and such other applicable guidance
under Code Section 409A. Any Employing Company may terminate or suspend the Plan with respect to
itself (in a manner consistent with the requirements of Code Section 409A necessary to avoid
adverse tax consequences) by executing and delivering to the Company or the Benefits Officer such
documents as the Company or Benefits Officer shall deem necessary or desirable.

     9.3 Participants’ Rights to Payment. No termination of the Plan or amendment thereto
shall deprive a Participant, Inactive Participant or Beneficiary of the right to payment of amounts
credited to his or her Supplemental Savings Account as of the date of termination or amendment, in
accordance with the terms of the Plan as of the date of such termination or amendment; provided,
however, that in the event of termination of the Plan, or termination of the Plan with respect to
the Company or one or more other Employing Companies, the Benefits Officer may, in such officer’s
sole and absolute discretion, accelerate the payment of all such credited deferred compensation on
a uniform basis for all Participants and Inactive Participants or, in the case of termination of
the Plan with respect to one or more other Employing Companies, for all Participants and Inactive
Participants of such other Employing Companies only, to the extent permitted under Treas. Reg. §
1.409A-3(j)(4)(ix) to avoid adverse tax consequences.

ARTICLE X. PARTICIPATING COMPANIES

     10.1 Adoption by Other Entities. Upon the approval of the Company or the Benefits
Officer, the Plan may be adopted by any Affiliate by executing and delivering to the Company or the
Benefits Officer such documents as the Company or Benefits Officer shall deem necessary or
desirable. The provisions of the Plan shall be fully applicable to such entity except as may
otherwise be agreed to by such adopting company and the Company or Benefits Officer.

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ARTICLE XI. GENERAL PROVISIONS

     11.1 Participants’ Rights Unsecured. The right of any Participant or Inactive
Participant to receive future payments under the provisions of the Plan shall be a general
unsecured claim against the general assets of the Employing Company employing the Participant at
the time that his or her compensation is deferred. The Company, and any other Employing Company or
former Employing Company shall not guarantee or be liable for payment of benefits to the employees
of any other Employing Company or former Employing Company under the Plan.

     11.2 Non-Assignability. The right of any person to receive any benefit payable under
the Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, lien or charge, and any
such benefit shall not, except to such extent as may be required by law, in any manner be liable
for or subject to the debts, contracts, liabilities, engagements or torts of the person who shall
be entitled to such benefits, nor shall it be subject to attachment or legal process for or against
such person.

     11.3 No Rights Against the Company. The establishment of the Plan, any amendment or
other modification thereof, or any payments hereunder, shall not be construed as giving to any
Employee, Participant, Inactive Participant or Beneficiary any legal or equitable rights against
the Company its shareholders, directors, officers or other employees, except as may be contemplated
by or under the Plan including, without limitation, the right of any Participant, Inactive
Participant or Beneficiary to be paid as provided under the Plan. Participation in the Plan does
not give rise to any actual or implied contract of employment. A Participant, Inactive Participant
or Beneficiary may be terminated at any time for any reason in accordance with the procedures of
the Company.

     11.4 Withholding. The Employing Company or former Employing Company or paying agent
shall withhold any federal, state and local income or employment tax (including F.I.C.A.
obligations for both social security and Medicare) which by any present or future law it is, or may
be, required to withhold with respect to any payment pursuant to the Plan, with respect to any of
its former or present Employees. The Benefits Officer shall provide or direct the provision of
information necessary or appropriate to enable each such company to so withhold.

     11.5 No Guarantee of Tax Consequences. The Benefits Officer, the Investment Committee,
the Administrative Committee, the Company and any Employing Company or any former Employing Company
do not make any commitment or guarantee that any amounts deferred for the benefit of a Participant,
Inactive Participant or Beneficiary will be excludible from the gross income of the Participant,
Inactive Participant or Beneficiary in the year deferred or paid for federal, state or local income
or employment tax purposes, or that any other federal, state or local tax treatment will apply to
or be available to any Participant, Inactive Participant or Beneficiary. It shall be the obligation
of each Participant, Inactive Participant or Beneficiary to determine whether any deferral or
payment under the Plan is excludible from his or her gross income for federal, state and local
income or employment tax purposes, and to take appropriate action if he or she has reason to
believe that any such deferral or payment is not so excludible.

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     11.6 Severability. If any particular provision of the Plan shall be found to be
illegal or unenforceable for any reason, the illegality or lack of enforceability of such provision
shall not affect the remaining provisions of the Plan, and the Plan shall be construed and enforced
as if the illegal or unenforceable provision had not been included.

     11.7 No Individual Liability. It is declared to be the express purpose and intention
of the Plan that no liability whatsoever shall attach to or be incurred by the shareholders,
officers, or directors of the Board or any representative appointed hereunder by the Company, under or by reason of any of the terms or
conditions of the Plan.

     11.8 Applicable Law. This Plan shall be governed by and construed in accordance with
the laws of the State of New York except to the extent governed by applicable federal law
(including the requirements of Code Section 409A).

     11.9 Compliance with Section 409A of the Code. This Plan is intended to comply with
Section 409A of the Code and will be interpreted in a manner intended to comply with Section 409A
of the Code. In furtherance thereof, no payments may be accelerated under the Plan other than to
the extent permitted under Section 409A of the Code. To the extent that any provision of the Plan
violates Section 409A of the Code such that amounts would be taxable to a Participant prior to
payment or would otherwise subject a Participant to a penalty tax under Section 409A, such
provision shall be automatically reformed or stricken to preserve the intent hereof.
Notwithstanding anything herein to the contrary, if any other payments due to a Participant
hereunder could cause the application of an accelerated or additional tax under Section 409A of the
Code, such payments or other benefits shall be deferred if deferral will make such payment
compliant under Section 409A of the Code, or otherwise such payment shall be restructured, to the
extent possible, in a manner, determined by the Benefits Officer or the Administrative Committee,
that does not cause such an accelerated or additional tax. The Benefits Officer and the
Administrative Committee shall implement the provisions of this Section 11.9 in good faith;
provided that none of the Company, the Benefits Officer, the Administrative Committee nor any of
the Company’s or its subsidiaries’ employees or representatives shall have any liability to
Participants with respect to this Section 11.9.

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