Document:

EX-4.2

EXHIBIT 4.2

FIRST AMENDMENT AGREEMENT

     This First Amendment Agreement (this “Agreement”) is entered into as of March 3, 2009,
by and among Lehman Brothers Bank, FSB (the “Exiting Lender”), the Lenders party hereto,
Bank of America, N.A., in its capacity as the Administrative Agent under the Credit Agreement
referred to below and Time Warner Cable Inc. (the “Borrower”). Defined terms in the Credit
Agreement (defined below) have the same meanings where used herein, unless otherwise defined.

RECITALS

     WHEREAS, the Borrower, the Administrative Agent, the lenders party thereto (including the
Exiting Lender) and certain other parties thereto have entered into the Amended and Restated Credit
Agreement dated as of February 15, 2006 (as amended, restated, supplemented or otherwise modified,
the “Credit Agreement”);

     WHEREAS, the Borrower and the Exiting Lender have agreed to terminate the Exiting Lender’s
Commitment and have requested that the Administrative Agent and the other Lenders agree to certain
amendments to the Credit Agreement in connection therewith; and

     WHEREAS, the Administrative Agent and the Lenders party hereto, constituting at least the
Required Lenders, have agreed to such termination and such requested amendments, subject to the
terms and conditions of this Agreement;

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
hereby are acknowledged, the parties hereto hereby agree as follows:

     1. Commitment Termination; Related Adjustments

     (a) Notwithstanding anything to the contrary in Section 2.08 of the Credit Agreement,
on the Effective Date (as defined below) the Commitment of the Exiting Lender (which the
parties hereto acknowledge is unused as of the Effective Date, except with respect to its
Applicable Percentage of the total LC Exposure as of the Effective Date) shall be reduced to
zero ($0.00) (the “Commitment Termination”), without any increase or decrease in the
Commitment of any other Lender.

     (b) Immediately following the Commitment Termination, (i) the Applicable Percentage of
the Exiting Lender shall automatically be reduced to zero percent (0%) and the Applicable
Percentage of each other Lender shall automatically be increased ratably such that the sum
of the Applicable Percentages of Lenders other than the Exiting Lender shall total one
hundred percent (100%) and (ii) the LC Exposure of the Exiting Lender shall automatically be
reduced to zero ($0.00), and the LC Exposure of each other Lender shall automatically be
increased to give effect to the increase in the Applicable Percentage of such Lender.

     (c) From and after the Effective Date, the Exiting Lender shall no longer be a party to
the Credit Documents and shall have no further obligation to fund any amount or

 

 

extend any credit to or for the benefit of the Borrower or its Affiliates pursuant to
the Credit Documents.

     2. Concerning Fees

     (a) The Exiting Lender has been paid the Facility Fee and the Letter of Credit Fee
accrued for its account through and including December 31, 2008 in accordance with the
Credit Agreement.

     (b) Notwithstanding anything to the contrary in the Credit Agreement, the Exiting
Lender shall not be entitled to, and hereby waives, (i) the Facility Fee accrued for its
account in respect of the average daily amount of its Commitment and (ii) the Letter of
Credit Fee accrued for its account in respect of the average daily amount of its LC
Exposure, in each case during the period from and including January 1, 2009 to and including
the Effective Date.

     3. Agreement on Future Commitments. The Exiting Lender hereby agrees that, following
the Commitment Termination, it shall not acquire any Commitment under the Credit Agreement without
the prior written consent of the Borrower.

     4. Representations and Warranties.

     (a) The Exiting Lender hereby represents and warrants that it is legally authorized to
enter into this Agreement, and this Agreement has been duly executed and delivered by the
Exiting Lender and constitutes its legal, valid and binding obligation, enforceable in
accordance with its terms.

     (b) The Borrower hereby represents and warrants that (i) it is legally authorized to
enter into this Agreement, and this Agreement has been duly executed and delivered by such
Borrower and constitutes its legal, valid and binding obligation, enforceable in accordance
with its terms and (ii) as of the date hereof, no Default or Event of Default has occurred
and is continuing.

     5. Condition Precedent to Effectiveness. Sections 1, 2 and 3 hereof shall not become
effective until the first date (such date being referred to as the “Effective Date”) on
which the following condition shall have been satisfied: the Administrative Agent (or its counsel)
shall have received (i) a counterpart of this Agreement signed on behalf of the Exiting Lender, the
Borrower and the Lenders (other than the Exiting Lender) representing at least the Required Lenders
or (ii) evidence satisfactory to the Administrative Agent (which may include a facsimile
transmission) that each such party has signed a counterpart of this Agreement.

     6. Mutual Release. The Borrower and the Exiting Lender hereby unconditionally and
irrevocably waive all claims, suits, debts, liens, losses, causes of action, demands, rights,
damages or costs, or expenses of any kind, character or nature whatsoever, known or unknown, fixed
or contingent, which they may have or claim to have against the other or the other’s agents,
employees, officers, affiliates, directors, representatives, attorneys, successors and assigns
(collectively, the “Released Parties” and each individually, a “Released Party”)
arising out of or in connection with the Credit Documents (collectively, the “Claims”).
The Borrower and the Exiting Lender further agree forever to refrain from commencing, instituting
or prosecuting any lawsuit, action or other proceeding against any Released Parties with respect to
any and all of the foregoing described waived, released, acquitted and discharged Claims and from
exercising any right of recoupment or setoff that it may

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have under a master netting agreement or otherwise against any Released Party with respect to
Obligations under the Credit Documents. Each of the Released Parties shall be a third party
beneficiary of this Section 6.

     7. Effect of Agreement. The parties hereto acknowledge that, from and after the
Effective Date, the Exiting Lender shall have no obligation to provide any further financial
accommodations to or for the benefit of the Borrower or its Affiliates pursuant to the Credit
Documents.

     8. Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of the Exiting Lender, the Lenders and the
Borrower.

     9. Limitation. Each party hereto hereby agrees that this Agreement is not
inconsistent with the terms of the Credit Agreement.

     10. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which taken together shall be one and the same
instrument. Delivery of an executed counterpart of a signature page of this Agreement by facsimile
shall be effective as delivery of a manually executed counterpart of this Agreement.

     11. Severability. Any provision of this Agreement held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

     12. Headings. The paragraph headings used in this Agreement are for convenience only
and shall not affect the interpretation of any of the provisions hereof.

     13. Interpretation. This Agreement shall constitute a Credit Document for the
purposes of the Credit Agreement and the other Credit Documents.

     14. Governing Law; Jurisdiction; Consent to Service of Process.

     (a) This Agreement shall be construed in accordance with and governed by the law of the
State of New York.

     (b) Each party to this Agreement hereby irrevocably and unconditionally submits, for
itself and its property, to the exclusive jurisdiction of the Supreme Court of the State of
New York sitting in New York County and of the United States District Court of the Southern
District of New York, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to this Agreement, or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding shall be heard and determined in such
New York State or, to the extent permitted by law, in such Federal court. Each of the
parties hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by law.

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     (c) Each party to this Agreement hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement in any court referred to in paragraph (b) of this Section 14.
Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or proceeding in
any such court.

     (d) Each party to this Agreement irrevocably consents to service of process in the
manner provided for notices in Section 9.01 of the Credit Agreement. Nothing in this
Agreement will affect the right of any party to this Agreement to serve process in any other
manner permitted by law.

     15. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HERETO HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 15.

[Signature page follows]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first written above.

	 	 	 	 	 
	 	LEHMAN BROTHERS BANK, FSB

 	 
	 	By:  	/s/  Theodore
Janulis	 
	 	 	Name:  	Theodore Janulis 	 
	 	 	Title:  	Chairman 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

as Administrative Agent

 	 
	 	By:  	/s/  Todd
Shipley	 
	 	 	Name:  	Todd
Shipley 	 
	 	 	Title:  	Senior Vice President 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as Lender

 	 
	 	By:  	/s/  Christopher
Ray	 
	 	 	Name:  	Christopher
Ray 	 
	 	 	Title:  	Senior Vice President 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	DEUTSCHE BANK AG NEW YORK BRANCH

as Co-Syndication Agent, a Reference Bank and a Lender

 	 
	 	By:  	/s/  Heidi
Sandquist	 
	 	Name:  	Heidi
Sandquist 	 
	 	Title:  	Director	 
	 
	 
	 	By:  	/s/  Ming K. Chu	 
	 	Name:  	Ming K. Chu 	 
	 	Title:  	Vice President	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	The Bank of Tokyo-Mitsubishi UFJ,
Ltd.,

as Lender

 	 
	 	By:  	/s/  Jose Carlos	 
	 	Name:  	Jose Carlos 	 
	 	Title:  	Authorized Signatory 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	The Royal Bank of Scotland plc,

as Lender

 	 
	 	By:  	/s/  Vincent Fitzgerald	 
	 	Name:  	Vincent Fitzgerald 	 
	 	Title:  	Managing Director 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	CALYON New York Branch,

as Lender

 	 
	 	By:  	/s/  Mischa
Zabotin	 
	 	Name:  	Mischa
Zabotin 	 
	 	Title:  	Managing Director 	 
	 
	 
	 	By:  	/s/  Michael Madnick	 
	 	Name:  	Michael Madnick 	 
	 	Title:  	Managing Director 	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	Sumitomo Mitsui Banking
Corporation,

as Lender

 	 
	 	By:  	/s/  Yoshihiro Hyakutome	 
	 	Name:  	Yoshihiro Hyakutome 	 
	 	Title:  	General Manager 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	ABN AMRO Bank N.V.,

as Lender

 	 
	 	By:  	/s/  David
Carrington	 
	 	Name:  	David Carrington 	 
	 	Title:  	Director 	 
	 
	 
	 	By:  	/s/  Suneel S. Crill	 
	 	Name:  	Suneel S. Crill 	 
	 	Title:  	Assistant Vice President 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA,

as Lender

 	 
	 	By:  	/s/  Brenda S. Insull	 
	 	Name:  	Brenda S. Insull 	 
	 	Title:  	Authorized Signatory 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	Dresdner Bank AG New York Branch,

as Lender

 	 
	 	By:  	/s/  Brian Smith	 
	 	Name:  	Brian Smith 	 
	 	Title:  	Managing Director 	 
	 
	 
	 	By:  	/s/  Mark McGuigan	 
	 	Name:  	Mark McGuigan 	 
	 	Title:  	Vice President 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	HSBC BANK USA, NATIONAL
ASSOCIATION,

as Lender

 	 
	 	By:  	/s/  Thomas
T. Rogers	 
	 	Name:  	Thomas
T. Rogers 	 
	 	Title:  	Senior Vice President 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	Morgan Stanley Senior Funding,

as Lender

 	 
	 	By:  	/s/  Janine Haas	 
	 	Name:  	Janine Haas 	 
	 	Title:  	Vice President 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	Lloyds TSB Bank plc

as Lender

 	 
	 	By:  	/s/  Deborah
Carlson	 
	 	Name:  	Deborah
Carlson 	 
	 	Title:  	Director 	 
	 
	 	By:  	/s/  Carlos Lopez	 
	 	Name:  	Carlos Lopez 	 
	 	Title:  	Associate Director 	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

as Lender

 	 
	 	By:  	/s/  Thomas J. Tarasovich, Jr.	 
	 	Name:  	Thomas J. Tarasovich, Jr. 	 
	 	Title:  	Vice President 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS
BRANCH,

as Lender

 	 
	 	By:  	/s/  Robert Hetu	 
	 	Name:  	Robert Hetu 	 
	 	Title:  	Managing Director 	 
	 
	 
	 	By:  	/s/  Christopher Reo Day	 
	 	Name:  	Christopher Reo Day 	 
	 	Title:  	Associate 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	LANDESBANK BADEN-WÜRTTEMBERG

(as legal successor of Landesbank Sachsen Girozentrale)
as Lender

 	 
	 	By:  	/s/  Andreas Trapp	 
	 	Name:  	Andreas Trapp 	 
	 	Title:  	Vice President 	 
	 
	 
	 	By:  	/s/  Gisela Huber	 
	 	Name:  	Gisela Huber 	 
	 	Title:  	Senior Risk Manager 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	MERRILL LYNCH BANK USA,

as Lender

 	 
	 	By:  	/s/  Louis
Alder	 
	 	Name:  	Louis
Alder 	 
	 	Title:  	First Vice President 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	TIME WARNER CABLE INC.

as Borrower

 	 
	 	By:  	/s/  Matthew Siegel
 	 
	 	 	Name:  	Matthew Siegel 	 
	 	 	Title:  	Senior Vice President & Treasurer 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	The undersigned Guarantors
acknowledge and agree to the First Amendment Agreement and confirm
that all of their obligations under the Credit Documents remain in
full force and effect after giving effect thereto and the
transactions contemplated thereby:	 
	 
	 
	 	TIME WARNER ENTERTAINMENT

   COMPANY, LP,

TIME WARNER NY CABLE LLC,
as
Guarantors

 	 
	 	By:  	/s/  Matthew Siegel
 	 
	 	 	Name:  	Matthew Siegel 	 
	 	 	Title:  	Senior Vice President & Treasurer 	 
	 

SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE TIME WARNER CABLE INC.

AMENDED AND RESTATED CREDIT AGREEMENTEX-10.1

EXHIBIT 10.1

TIME WARNER CABLE INC.

2006 STOCK INCENTIVE PLAN, AS AMENDED

1. Purpose of the Plan

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

2. Definitions

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

	 	(a)	 	“Act” means The Securities Exchange Act of 1934, as amended, or any
successor thereto.
	 
	 	(b)	 	“Affiliate” means any entity that is consolidated with the Company for
financial reporting purposes or any other entity designated by the Board in which the
Company or an Affiliate has a direct or indirect equity interest of at least twenty
percent (20%), measured by reference to vote or value.
	 
	 	(c)	 	“Award” means an Option, Stock Appreciation Right, Restricted Stock or
Other Stock-Based Award granted pursuant to the Plan.
	 
	 	(d)	 	“Board” means the Board of Directors of the Company.
	 
	 	(e)	 	“Change in Control” means the occurrence of any of the following
events:

     (i) any “Person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Act
(other than (a) the Company or any company owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their ownership
of stock of the Company; or (b) Time Warner Inc. or any successor to Time Warner
Inc.) becomes the “Beneficial Owner” within the meaning of Rule 13d-3 promulgated
under the Act of 30% or more of the combined voting power of the then outstanding
securities of the Company entitled to vote generally in the election of directors at
a time that Time Warner Inc. or any successor controls less than a majority of such
voting power; excluding, however, any circumstance in which such
beneficial ownership resulted from any acquisition by an employee benefit plan (or
related trust) sponsored or maintained by the Company or by any entity controlling,
controlled by, or under common control with, the Company;

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     (ii) a change in the composition of the Board since the Effective Date, such
that the individuals who, as of such date, constituted the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of such Board;
provided that any individual who becomes a director of the Company
subsequent to the Effective Date whose election, or nomination for election by the
Company’s stockholders, was approved by either (a) the vote of at least a majority
of the directors then comprising the Incumbent Board or (b) Time Warner Inc., a
successor to Time Warner Inc. or subsidiaries of Time Warner Inc. or a successor to
Time Warner Inc., at a time that Time Warner Inc. or a successor to Time Warner Inc.
controls a majority of the combined voting power of the then outstanding securities
of the Company entitled to vote generally in the election of directors of the
Company, shall be deemed a member of the Incumbent Board; and provided
further, that any individual who was initially elected as a director of the
Company as a result of an actual or threatened election contest, as such terms are
used in Rule 14a-12 of Regulation 14A promulgated under the Act, or any other actual
or threatened solicitation of proxies or consents by or on behalf of any person or
Entity other than the Board shall not be deemed a member of the Incumbent Board;

     (iii) a reorganization, recapitalization, merger or consolidation (a
“Corporate Transaction”) involving the Company, unless securities
representing more than 50% of the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors of the
Company or the corporation resulting from such Corporate Transaction (or the parent
of such corporation) are held subsequent to such transaction either (a) by the
person or persons who were the beneficial holders of the outstanding voting
securities entitled to vote generally in the election of directors of the Company
immediately prior to such Corporate Transaction, in substantially the same
proportions as their ownership immediately prior to such Corporate Transaction or
(b) by the person or persons who were the beneficial holders of the outstanding
voting securities entitled to vote generally in the election of directors of Time
Warner Inc. or any successor to Time Warner Inc. immediately prior to such Corporate
Transaction, in substantially the same proportions as their ownership immediately
prior to such Corporate Transaction, if such Corporate Transaction occurs at a time
that Time Warner Inc. or a successor to Time Warner Inc. controls a majority of the
combined voting power of the then outstanding securities of the Company entitled to
vote generally in the election of directors of the Company; or

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

	 	(f)	 	“Code” means The Internal Revenue Code of 1986, as amended, or any
successor thereto.
	 
	 	(g)	 	“Committee” means the Compensation Committee of the Board or its
successor, or such other committee of the Board to which the Board has delegated power
to act under or pursuant to the provisions of the Plan or a subcommittee of the

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	 	 	 	Compensation Committee (or such other committee) established by the Compensation
Committee or such other committee.
	 
	 	(h)	 	“Company” means Time Warner Cable Inc., a Delaware corporation.
	 
	 	(i)	 	“Effective Date” means the date the Board approved the Plan (June 8,
2006).
	 
	 	(j)	 	“Employment” means (i) a Participant’s employment if the Participant is
an employee of the Company or any of its Affiliates and (ii) a Participant’s services
as a non-employee director, if the Participant is a non-employee member of the Board or
the board of directors of an Affiliate; provided, however that unless
otherwise determined by the Committee, a change in a Participant’s status from employee
to non-employee (other than to a director of the Company or an Affiliate) shall
constitute a termination of employment hereunder.
	 
	 	(k)	 	“Fair Market Value” means, on a given date, (i) if there should be a
public market for the Shares on such date, the closing price of the Shares on the New
York Stock Exchange, or, if the Shares are not listed or admitted on any national
securities exchange, the average of the per Share closing bid price and per Share
closing asked price on such date as quoted on the National Association of Securities
Dealers Automated Quotation System (or such market in which such prices are regularly
quoted) (the “NASDAQ”), or, if no sale of Shares shall have been reported on the New
York Stock Exchange or quoted on the NASDAQ on such date, then the immediately
preceding date on which sales of the Shares have been so reported or quoted shall be
used, and (ii) if there should not be a public market for the Shares on such date, the
Fair Market Value shall be the value established by the Committee in good faith.
	 
	 	(l)	 	“ISO” means an Option that is also an incentive stock option granted
pursuant to Section 6(d).
	 
	 	(m)	 	“Make-Up Awards” means a grant of Awards to Post-Separation TWCable
Employees that may be made by the Committee if the Committee determines that such grant
is necessary or appropriate to compensate Post-Separation TWCable Employees for any
lost or decreased value of TWX Equity Compensation Awards that they hold immediately
prior to the Separation due to the forfeiture of such TWX Equity Compensation Awards or
a reduction in the time period to exercise any such TWX Equity Compensation Awards that
are stock options.
	 
	 	(n)	 	“Option” means a stock option granted pursuant to Section 6.
	 
	 	(o)	 	“Option Price” means the price for which a Share can be purchased upon
exercise of an Option, as determined pursuant to Section 6(a).
	 
	 	(p)	 	“Other Stock-Based Awards” means awards Granted pursuant to Section 9.
	 
	 	(q)	 	“Outstanding RSU” means an RSU that is outstanding immediately prior to
the Separation.

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	 	(r)	 	“Participant” means an employee, prospective employee, director or
advisor of the Company or an Affiliate who is selected by the Committee to participate
in the Plan.
	 
	 	(s)	 	“Performance-Based Awards” means certain Other Stock-Based Awards
granted pursuant to Section 9(b).
	 
	 	(t)	 	“Plan” means the Time Warner Cable Inc. 2006 Stock Incentive Plan, as
amended from time to time.
	 
	 	(u)	 	“Post-Separation TWCable Employee” has the meaning ascribed thereto in
the Separation Agreement.
	 
	 	(v)	 	“Ratio” means the quotient resulting from dividing (a) the grant date
fair value of a share of Restricted Stock or other Stock-Based Award payable in Stock,
as the case may be, as determined for financial reporting purposes (the “grant date
fair value”) by (b) the grant date fair value of an Option with a ten-year term that
becomes exercisable in installments of 25% on the first four anniversaries of the date
of grant; provided, however, that if such grant date fair value is not available, the
fair value shall be the fair value as determined for financial reporting purposes as of
the most recently completed fiscal quarter of the Company for which financial
statements and such valuation have been prepared. 
	 
	 	(w)	 	“Recapitalization” has the meaning ascribed thereto in the Separation
Agreement.
	 
	 	(x)	 	“Restricted Stock” means any Share granted under Section 8.
	 
	 	(y)	 	“RSU” means an Other Stock-Based Award which is a restricted stock unit
award.
	 
	 	(z)	 	“RSU Agreement” means the Restricted Stock Unit Agreement between a
holder of an Outstanding RSU and the Company governing the terms and conditions of the
Outstanding RSU.
	 
	 	(aa)	 	“Separation” has the meaning ascribed thereto in the Separation
Agreement.
	 
	 	(bb)	 	“Separation Agreement” means the Separation Agreement, dated as of May
20, 2008, among Time Warner Inc., the parent corporation of the Company, Time Warner
Entertainment Company, L.P., TW NY Cable Holding Inc., Warner Communications Inc.,
Historic TW Inc. and American Television and Communications Corporation.
	 
	 	(cc)	 	“Separation Date” has the meaning ascribed thereto in the Separation
Agreement.

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	 	(dd)	 	“Shares” means shares of Class A Common Stock of the Company, $.01 par
value per share, unless and until the effective date of the Recapitalization, in which
case, “Shares” shall mean shares of TWCable Common Stock.
	 
	 	(ee)	 	“Special Dividend” has the meaning ascribed thereto in the Separation
Agreement.
	 
	 	(ff)	 	“Special Dividend Equivalent RSUs” means RSUs that are awarded under
the Plan in lieu of any cash credit that would otherwise be made with respect to
Outstanding RSUs as a result of the Special Dividend, as provided in the RSU
Agreements, but only in respect of holders of Outstanding RSUs who elect to receive
such additional RSUs in lieu of such cash credit, in accordance with such procedures
established by the Committee. The aggregate number of each of (i) the Special Dividend
Equivalent RSUs and (ii) the number of Shares underlying the Special Dividend
Equivalent RSUs shall be the number that is equal to the otherwise applicable aggregate
cash credits with respect to which holders of Outstanding RSUs elected to receive
Special Dividend Equivalent RSUs, divided by the Fair Market Value of one Share after
giving effect to the Special Dividend, as determined in accordance with procedures
established by the Committee. Except as the Committee may otherwise provide, the
Special Dividend Equivalent RSUs shall vest and be paid out on the same basis as the
Outstanding RSUs to which they relate.
	 
	 	(gg)	 	“Stock Appreciation Right” means a stock appreciation right granted
pursuant to Section 7.
	 
	 	(hh)	 	“Subsidiary” means a subsidiary corporation, as defined in Section
424(f) of the Code (or any successor section thereto), of the Company.
	 
	 	(ii)	 	“TWCable Common Stock” has the meaning ascribed thereto in the
Separation Agreement.
	 
	 	(jj)	 	“TWX Equity Compensation Award” has the meaning ascribed thereto in the
Separation Agreement.
	 
	 	(kk)	 	“Yearly Share Limit” means the maximum aggregate number of Shares with
respect to which Awards may be granted during a calendar year, net of any Shares which
are subject to Awards (or portions thereof) which, during such year, terminate or lapse
without payment of consideration, expressed as a percentage of the number of Shares
outstanding on December 31 of the immediately preceding calendar year, as set out in
Section 3 of the Plan.

3. Shares Subject to the Plan

     The total number of Shares which may be issued under the Plan is 100,000,000. Any Shares
issued in connection with Awards other than Option or Stock Appreciation Rights shall be counted
against this authorization as the number of Shares equal to the Ratio for every one Share issued in
connection with such Award or by which the Award is valued by reference. Any

5

 

shares issued in connection with Awards of Options or Stock Appreciation Rights shall be counted
against this limit as one share for every one share issued. The maximum aggregate number of Shares
with respect to which Awards may be granted during a calendar year, net of any Shares which are
subject to Awards (or portions thereof) which, during such year, terminate or lapse without payment
of consideration, shall be equal to 1.75% of the number of Shares outstanding on December 31 of the
preceding calendar year; provided that for the year ended December 31, 2006 if such number
of outstanding shares is less than one billion, such number shall be deemed to be one billion. The
maximum number of Shares with respect to which Awards may be granted during a calendar year to any
Participant shall be 1,500,000; provided that the maximum number of Shares that may be
awarded in the form of Restricted Stock or Other Stock-Based Awards payable in Shares during any
calendar year to any Participant shall be 1,500,000 divided by the Ratio. The number of Shares
available for issuance under the Plan shall be reduced by the full number of Shares covered by
Awards granted under the Plan (including, without limitation, the full number of Shares covered by
any Stock Appreciation Right, regardless of whether any such Stock Appreciation Right or other
Award covering Shares under the Plan is ultimately settled in cash or by delivery of Shares);
provided, however, that the number of Shares covered by Awards (or portions thereof) that
are forfeited or that otherwise terminate or lapse without the payment of consideration in respect
thereof shall again become available for issuance under the Plan; and provided further that
any Shares that are forfeited after the actual issuance of such Shares to a Participant under the
Plan shall not become available for re-issuance under the Plan.

4. Administration

	 	(a)	 	The Plan shall be administered by the Committee, which may delegate its duties
and powers in whole or in part to any subcommittee thereof consisting solely of at
least two individuals who are intended to qualify as “independent directors” within the
meaning of the New York Stock Exchange listed company rules (to the extent required),
“Non-Employee Directors” within the meaning of Rule 16b-3 under the Act (or any
successor rule thereto) and, to the extent required by Section 162(m) of the Code (or
any successor section thereto), “outside directors” within the meaning thereof. In
addition, the Committee may delegate the authority to grant Awards under the Plan to
any employee or group of employees of the Company or an Affiliate; provided
that such grants are consistent with guidelines established by the Committee from
time to time.
	 
	 	(b)	 	The Committee shall have the full power and authority to make, and establish
the terms and conditions of, any Award to any person eligible to be a Participant,
consistent with the provisions of the Plan and to waive any such terms and conditions
at any time (including, without limitation, accelerating or waiving any vesting
conditions). Awards may, in the discretion of the Committee, be made under the Plan in
assumption of, or in substitution for, outstanding awards previously granted by the
Company or its affiliates or a company acquired by the Company or with which the
Company combines. The number of Shares underlying such substitute awards shall be
counted against the aggregate number of Shares available for Awards under the Plan.

6

 

	 	(c)	 	The Committee is authorized to interpret the Plan, to establish, amend and
rescind any rules and regulations relating to the Plan, and to make any other
determinations that it deems necessary or desirable for the administration of the Plan,
and may delegate such authority, as it deems appropriate. The Committee may correct any
defect or supply any omission or reconcile any inconsistency in the Plan in the manner
and to the extent the Committee deems necessary or desirable. Any decision of the
Committee in the interpretation and administration of the Plan, as described herein,
shall lie within its sole and absolute discretion and shall be final, conclusive and
binding on all parties concerned (including, but not limited to, Participants and their
beneficiaries or successors).
	 
	 	(d)	 	The Committee shall require payment of any amount it may determine to be
necessary to withhold for federal, state, local or other taxes as a result of the
exercise, grant or vesting of an Award. Unless the Committee specifies otherwise, the
Participant may elect to pay a portion or all of such withholding taxes by (a) delivery
of Shares or (b) having Shares withheld by the Company with a Fair Market Value equal
to the minimum statutory withholding rate from any Shares that would have otherwise
been received by the Participant.

5. Limitations

	 	(a)	 	No Award may be granted under the Plan after the fifth anniversary of the first
grant of an Award under the Plan, but Awards granted prior to such fifth anniversary
may extend beyond that date.
	 
	 	(b)	 	No Option or Stock Appreciation Right, once granted hereunder, may be repriced.

6. Terms and Conditions of Options

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

	 	(a)	 	Option Price. The Option Price per Share shall be determined by the
Committee, but shall not be less than 100% of the Fair Market Value of a Share on the
date an Option is granted.
	 
	 	(b)	 	Exercisability. Options granted under the Plan shall be exercisable at
such time and upon such terms and conditions as may be determined by the Committee, but
in no event shall an Option be exercisable more than ten years after the date it is
granted, except as may be provided pursuant to Section 15.
	 
	 	(c)	 	Exercise of Options. Except as otherwise provided in the Plan or in an
Award agreement, an Option may be exercised for all, or from time to time any part, of
the Shares for which it is then exercisable. For purposes of this Section 6, the

7

 

	 	 	 	exercise date of an Option shall be the date a notice of exercise is received by the
Company, together with provision for payment of the full purchase price in
accordance with this Section 6(c). The purchase price for the Shares as to which an
Option is exercised shall be paid to the Company, as designated by the Committee,
pursuant to one or more of the following methods: (i) in cash or its equivalent
(e.g., by check); (ii) in Shares having a Fair Market Value equal to the aggregate
Option Price for the Shares being purchased and satisfying such other requirements
as may be imposed by the Committee; provided that such Shares have been held
by the Participant for no less than six months (or such other period as established
from time to time by the Committee in order to avoid adverse accounting treatment
applying generally accepted accounting principles); (iii) partly in cash and partly
in such Shares or (iv) if there is a public market for the Shares at such time,
through the delivery of irrevocable instructions to a broker to sell Shares obtained
upon the exercise of the Option and to deliver promptly to the Company an amount out
of the proceeds of such Sale equal to the aggregate Option Price for the Shares
being purchased. No Participant shall have any rights to dividends or other rights
of a stockholder with respect to Shares subject to an Option until the Shares are
issued to the Participant.
	 
	 	(d)	 	ISOs. The Committee may grant Options under the Plan that are intended
to be ISOs. Such ISOs shall comply with the requirements of Section 422 of the Code (or
any successor section thereto). No ISO may be granted to any Participant who at the
time of such grant, owns more than ten percent of the total combined voting power of
all classes of stock of the Company or of any Subsidiary, unless (i) the Option Price
for such ISO is at least 110% of the Fair Market Value of a Share on the date the ISO
is granted and (ii) the date on which such ISO terminates is a date not later than the
day preceding the fifth anniversary of the date on which the ISO is granted. Any
Participant who disposes of Shares acquired upon the exercise of an ISO either (i)
within two years after the date of grant of such ISO or (ii) within one year after the
transfer of such Shares to the Participant, shall notify the Company of such
disposition and of the amount realized upon such disposition. All Options granted under
the Plan are intended to be nonqualified stock options, unless the applicable Award
agreement expressly states that the Option is intended to be an ISO. If an Option is
intended to be an ISO, and if for any reason such Option (or portion thereof) shall not
qualify as an ISO, then, to the extent of such non-qualification, such Option (or
portion thereof) shall be regarded as a nonqualified stock option granted under the
Plan; provided that such Option (or portion thereof) otherwise complies with
the Plan’s requirements relating to nonqualified stock options. In no event shall any
member of the Committee, the Company or any of its Affiliates (or their respective
employees, officers or directors) have any liability to any Participant (or any other
person) due to the failure of an Option to qualify for any reason as an ISO.
	 
	 	(e)	 	Attestation. Wherever in this Plan or any agreement evidencing an
Award a Participant is permitted to pay the exercise price of an Option or taxes
relating to the exercise of an Option by delivering Shares, the Participant may,
subject to procedures satisfactory to the Committee, satisfy such delivery requirement
by

8

 

	 	 	 	presenting proof of beneficial ownership of such Shares, in which case the Company
shall treat the Option as exercised without further payment and/or shall withhold
such number of Shares from the Shares acquired by the exercise of the Option, as
appropriate.

7. Terms and Conditions of Stock Appreciation Rights

	 	(a)	 	Grants. The Committee may grant (i) a Stock Appreciation Right
independent of an Option or (ii) a Stock Appreciation Right in connection with an
Option, or a portion thereof. A Stock Appreciation Right granted pursuant to clause
(ii) of the preceding sentence (A) may be granted at the time the related Option is
granted or at any time prior to the exercise or cancellation of the related Option, (B)
shall cover the same number of Shares covered by an Option (or such lesser number of
Shares as the Committee may determine) and (C) shall be subject to the same terms and
conditions as such Option except for such additional limitations as are contemplated by
this Section 7 (or such additional limitations as may be included in an Award
agreement).
	 
	 	(b)	 	Terms. The exercise price per Share of a Stock Appreciation Right
shall be an amount determined by the Committee but in no event shall such amount be
less than the Fair Market Value of a Share on the date the Stock Appreciation Right is
granted; provided, however, that notwithstanding the foregoing in the
case of a Stock Appreciation Right granted in conjunction with an Option, or a portion
thereof, the exercise price may not be less than the Option Price of the related
Option. Each Stock Appreciation Right granted independent of an Option shall entitle a
Participant upon exercise to an amount equal to (i) the excess of (A) the Fair Market
Value on the exercise date of one Share over (B) the exercise price per Share, times
(ii) the number of Shares covered by the Stock Appreciation Right. Each Stock
Appreciation Right granted in conjunction with an Option, or a portion thereof, shall
entitle a Participant to surrender to the Company the unexercised Option, or any
portion thereof, and to receive from the Company in exchange therefor an amount equal
to (i) the excess of (A) the Fair Market Value on the exercise date of one Share over
(B) the Option Price per Share, times (ii) the number of Shares covered by the Option,
or portion thereof, which is surrendered. Payment shall be made in Shares or in cash,
or partly in Shares and partly in cash (any such Shares valued at such Fair Market
Value), all as shall be determined by the Committee. Stock Appreciation Rights may be
exercised from time to time upon actual receipt by the Company of written notice of
exercise stating the number of Shares with respect to which the Stock Appreciation
Right is being exercised. The date a notice of exercise is received by the Company
shall be the exercise date. No fractional Shares will be issued in payment for Stock
Appreciation Rights, but instead cash will be paid for a fraction or, if the Committee
should so determine, the number of Shares will be rounded downward to the next whole
Share. No Participant shall have any rights to dividends or other rights of a
stockholder with respect to Shares covered by Stock Appreciation Rights until the
Shares are issued to the Participant.

9

 

	 	(c)	 	Limitations. The Committee may impose, in its discretion, such
conditions upon the exercisability of Stock Appreciation Rights as it may deem fit, but
in no event shall a Stock Appreciation Right be exercisable more than ten years after
the date it is granted, except as may be provided pursuant to Section 15.

8. Restricted Stock

	 	(a)	 	Grant. Subject to the provisions of the Plan, the Committee shall
determine the number of Shares of Restricted Stock to be granted to each Participant,
the duration of the period during which, and the conditions, if any, under which, the
Restricted Stock may be forfeited to the Company, and the other terms and conditions of
such Awards; provided that, except with respect to Awards to members of the
Company’s Board, not less than 95% of the Shares of Restricted Stock (other than those
awarded pursuant to Section 8(d)) shall remain subject to forfeiture for at least three
years after the date of grant, subject to earlier termination of such potential for
forfeiture in whole or in part in the event of a Change in Control or the death,
disability or other termination of the Participant’s employment.
	 
	 	(b)	 	Transfer Restrictions. Shares of Restricted Stock may not be sold,
assigned, transferred, pledged or otherwise encumbered, except as provided in the Plan
or the applicable Award agreement. Certificates, or other evidence of ownership, issued
in respect of Shares of Restricted Stock shall be registered in the name of the
Participant and deposited by such Participant, together with a stock power endorsed in
blank, with the Company. After the lapse of the restrictions applicable to such Shares
of Restricted Stock, the Company shall deliver such certificates, or other evidence of
ownership, to the Participant or the Participant’s legal representative.
	 
	 	(c)	 	Dividends. Dividends paid on any Shares of Restricted Stock may be
paid directly to the Participant, withheld by the Company subject to vesting of the
Restricted Shares pursuant to the terms of the applicable Award agreement, or may be
reinvested in additional Shares of Restricted Stock, as determined by the Committee in
its sole discretion.
	 
	 	(d)	 	Performance-Based Grants. Notwithstanding anything to the contrary
herein, certain Shares of Restricted Stock granted under this Section 8 may, at the
discretion of the Committee, be granted in a manner which is intended to be deductible
by the Company under Section 162(m) of the Code (or any successor section thereto). The
restrictions applicable to such Restricted Stock shall lapse based wholly or partially
on the attainment of written performance goals approved by the Committee for a
performance period established by the Committee (i) while the outcome for that
performance period is substantially uncertain and (ii) no more than 90 days after the
commencement of the performance period to which the performance goal relates or, if
less, the number of days which is equal to 25 percent of the relevant performance
period. The performance goals, which must be objective, shall be based upon one or more
of the criteria set forth in

10

 

	 	 	 	Section 9(b) below. The Committee shall determine in its discretion whether, with
respect to a performance period, the applicable performance goals have been met with
respect to a given Participant and, if they have, shall so certify prior to the
release of the restrictions on the Shares.

9. Other Stock-Based Awards

	 	(a)	 	Generally. The Committee, in its sole discretion, may grant or sell
Awards of Shares and Awards that are valued in whole or in part by reference to, or are
otherwise based on the Fair Market Value of, Shares (“Other Stock-Based Awards”). Such
Other Stock-Based Awards shall be in such form, and dependent on such conditions, as
the Committee shall determine, including, without limitation, the right to receive, or
vest with respect to, one or more Shares (or the equivalent cash value of such Shares)
upon the completion of a specified period of service, the occurrence of an event and/or
the attainment of performance objectives. Other Stock-Based Awards may be granted alone
or in addition to any other Awards granted under the Plan. Subject to the provisions of
the Plan, the Committee shall determine the number of Shares to be awarded to a
Participant under (or otherwise related to) such Other Stock-Based Awards; whether such
Other Stock-Based Awards shall be settled in cash, Shares or a combination of cash and
Shares; and all other terms and conditions of such Awards (including, without
limitation, the vesting provisions thereof and provisions ensuring that all Shares so
awarded and issued shall be fully paid and non-assessable). The maximum amount of Other
Stock-Based Awards that may be granted during a calendar year to any Participant shall
be: (x) with respect to Other Stock-Based Awards that are denominated or payable in
Shares, the number of Shares equal to 1,500,000 divided by the Ratio, and (y) with
respect to Other Stock-Based Awards that are not denominated or payable in Shares, $10
million. Notwithstanding any other provision, with respect to Other Stock-Based Awards
settled in Shares that are subject to time-based vesting, except with respect to Awards
to members of the Company’s Board, not less than 95% of such Other Stock-Based Awards
payable in Shares shall vest and become payable at least three years after the date of
grant, subject to earlier termination of such potential for forfeiture in whole or in
part in the event of a Change in Control or the death, disability or other termination
of the Participant’s employment; provided that, for purposes of this sentence,
any Other Stock-Based Awards granted by the Committee in its discretion as “Special
Make-Up Awards” (as defined below) and Special Dividend Equivalent RSUs shall not be
included in determining the percentage of Other Stock-Based Awards settled in Shares
that are subject to time-based vesting that vest and become payable less than three
years after the date of grant. For purposes of this Section 9(a), a “Special
Make-Up Award” means a Make-Up Award that is intended to compensate for any lost or
decreased value of a TWX Equity Compensation Award which is a restricted stock unit
award or which makes up for a loss or forfeiture of the intrinsic value of a TWX Equity
Compensation Award that is an option.

11

 

	 	(b)	 	Performance-Based Awards. Notwithstanding anything to the contrary
herein, certain Other Stock-Based Awards granted under this Section 9 may be granted in
a manner which is intended to be deductible by the Company under Section 162(m) of the
Code (or any successor section thereto) (“Performance-Based Awards”). A Participant’s
Performance-Based Award shall be determined based on the attainment of written
performance goals approved by the Committee for a performance period of not less than
one year established by the Committee (i) while the outcome for that performance period
is substantially uncertain and (ii) no more than 90 days after the commencement of the
performance period to which the performance goal relates or, if less, the number of
days which is equal to 25 percent of the relevant performance period. The performance
goals, which must be objective, shall be based upon one or more of the following
criteria: (i) operating income before depreciation and amortization; (ii) operating
income; (iii) earnings per share; (iv) return on shareholders’ equity; (v) revenues or
sales; (vi) free cash flow; (vii) return on invested capital; (viii) total stockholder
return; and (ix) revenue generating unit-based metrics. The foregoing criteria may
relate to the Company, one or more of its Affiliates or one or more of its or their
divisions or units, or any combination of the foregoing, and may be applied on an
absolute basis and/or be relative to one or more peer group companies or indices, or
any combination thereof, all as the Committee shall determine. In addition, to the
degree consistent with Section 162(m) of the Code (or any successor section thereto),
the performance goals may be calculated without regard to extraordinary items. The
Committee shall determine whether, with respect to a performance period, the applicable
performance goals have been met with respect to a given Participant and, if they have,
shall so certify and ascertain the amount of the applicable Performance-Based Award. No
Performance-Based Awards will be paid for such performance period until such
certification is made by the Committee. The amount of the Performance-Based Award
actually paid to a given Participant may be less than the amount determined by the
applicable performance goal formula, at the discretion of the Committee. The amount of
the Performance-Based Award determined by the Committee for a performance period shall
be paid to the Participant at such time as determined by the Committee in its sole
discretion after the end of such performance period; provided, however,
that a Participant may, if and to the extent permitted by the Committee and consistent
with the provisions of Section 162(m) of the Code and Section 19 below, elect to defer
payment of a Performance-Based Award.

10. Adjustments Upon Certain Events

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

	 	(a)	 	Generally. In the event of any change in the outstanding Shares
(including, without limitation, the value thereof) after the Effective Date by reason
of any Share dividend or split, reorganization, recapitalization, merger,
consolidation, spin-off, combination, combination or transaction or exchange of
Shares or other

12

 

	 	 	 	corporate exchange, or any distribution to stockholders of Shares other than regular
cash dividends or any transaction similar to the foregoing, the Committee in its
sole discretion and without liability to any person shall make such substitution or
adjustment, if any, as it deems to be equitable (subject to Section 19), as to (i)
the number or kind of Shares or other securities issued or reserved for issuance
pursuant to the Plan or pursuant to outstanding Awards, (ii) the maximum number of
Shares for which Awards (including limits established for Restricted Stock or Other
Stock-Based Awards) may be granted during a calendar year to any Participant, (iii)
the Option Price or exercise price of any Stock Appreciation Right and/or (iv) any
other affected terms of such Awards. Notwithstanding the foregoing, in recognition
of the Separation and the Special Dividend, (A) the number of Shares reserved for
issuance pursuant to the Plan shall be increased by the number that is, as
contemplated by the foregoing, determined by the Committee to be equitable to adjust
Options held by Post-Separation TWCable Employees or other Option holders
immediately prior to the Separation Date to account for any decrease in the Fair
Market Value per Share resulting from the Special Dividend, it being understood that
the Committee shall also exercise its power under the Plan to equitably adjust the
exercise price of such Options to reflect the Special Dividend; (B) the number of
Shares reserved for issuance pursuant to the Plan shall be increased by the number
of Shares subject to Special Dividend Equivalent RSUs (as calculated in accordance
with the definition of “Special Dividend Equivalent RSUs”); (C) the number of Shares
authorized for issuance pursuant to the Plan shall be increased by 25,000,000 in
addition to the increase provided for in clauses (A) and (B); (D) the Yearly Share
Limit shall be increased from the previously-applicable 1.5% to 1.75%; and (E) none
of the Shares underlying the Option adjustment contemplated by clause (A), the
Shares subject to Special Dividend Equivalent RSUs as contemplated by clause (B), or
the Shares underlying the Make-Up Awards shall be included in determining whether
the Yearly Share Limit has been exceeded; provided that the Committee shall
not make any adjustments to the number of Shares or other securities reserved or
authorized for issuance pursuant to the Plan or the Yearly Share Limit in connection
with the Separation or the Special Dividend, other than the adjustments described
herein and pursuant to the Recapitalization as described in the Plan, as amended.

	 	(b)	 	Change in Control. In the event of a Change in Control after the
Effective Date, the Committee may (subject to Section 19), but shall not be obligated
to, (A) accelerate, vest or cause the restrictions to lapse with respect to, all or
any portion of an Award, (B) cancel Awards for fair value (as determined in the sole
discretion of the Committee) which, in the case of Options and Stock Appreciation
Rights, may equal the excess, if any, of value of the consideration to be paid in the
Change in Control transaction to holders of the same number of Shares subject to such
Options or Stock Appreciation Rights (or, if no consideration is paid in any such
transaction, the Fair Market Value of the Shares subject to such Options or Stock
Appreciation Rights) over the aggregate exercise price of such Options or Stock
Appreciation Rights, (C) provide for the issuance of substitute Awards that will
substantially preserve the otherwise applicable

13

 

	 	 	 	terms of any affected Awards previously granted hereunder as determined by the
Committee in its sole discretion or (D) provide that for a period of at least 30
days prior to the Change in Control, such Options shall be exercisable as to all
shares subject thereto and that upon the occurrence of the Change in Control, such
Options shall terminate and be of no further force and effect.

11. No Right to Employment or Awards

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

12. Successors and Assigns

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

13. Non-transferability of Awards

     Unless otherwise determined by the Committee (and subject to the limitation that in no
circumstances may an Award be transferred by the Participant for consideration or value), an Award
shall not be transferable or assignable by the Participant otherwise than by will or by the laws of
descent and distribution. An Award exercisable after the death of a Participant may be exercised by
the legatees, personal representatives or distributees of the Participant.

14. Amendments or Termination

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

14

 

     Without limiting the generality of the foregoing, to the extent applicable, notwithstanding
anything herein to the contrary, this Plan and Awards issued hereunder shall be interpreted in
accordance with Section 409A of the Code and Department of Treasury regulations and other
interpretative guidance issued thereunder, including without limitation any such regulations or
other guidance that may be issued after the Effective Date. Notwithstanding any provision of the
Plan to the contrary, in the event that the Committee determines that any amounts payable hereunder
will be taxable to a Participant under Section 409A of the Code and related Department of Treasury
guidance, prior to payment to such Participant of such amount, the Company may (a) adopt such
amendments to the Plan and Awards and appropriate policies and procedures, including amendments and
policies with retroactive effect, that the Committee determines necessary or appropriate to
preserve the intended tax treatment of the benefits provided by the Plan and Awards hereunder
and/or (b) take such other actions as the Committee determines necessary or appropriate to avoid or
limit the imposition of an additional tax under Section 409A of the Code.

15. International Participants

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

16. Other Benefit Plans

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

17. Choice of Law

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

18. Effectiveness of the Plan

     The Plan shall be effective as of the Effective Date.

19. Section 409A

15

 

     Notwithstanding other provisions of the Plan or any Award agreements thereunder, no Award
shall be granted, deferred, accelerated, extended, paid out or modified under this Plan in a manner
that would result in the imposition of an additional tax under Section 409A of the Code upon a
Participant. In the event that it is reasonably determined by the Committee that, as a result of
Section 409A of the Code, payments in respect of any Award under the Plan may not be made at the
time contemplated by the terms of the Plan or the relevant Award agreement, as the case may be,
without causing the Participant holding such Award to be subject to taxation under Section 409A of
the Code, the Company will make such payment on the first day that would not result in the
Participant incurring any tax liability under Section 409A of the Code.

16

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