Document:

Time Warner Telecom 2004 Qualified Stock Purchase Plan

 EXHIBIT 4.3 
  
 TIME WARNER TELECOM 
 2004 QUALIFIED STOCK PURCHASE PLAN 
  
 1. Purpose. The purpose of the Time Warner Telecom 2004 Qualified Stock Purchase Plan (the “Plan”) is to facilitate capital accumulation by Eligible Employees in the form of Common Stock of the Company and thereby to
provide employee identification with and commitment to the goals of the Company. The Company intends that the Plan qualify as an “employee stock purchase plan” under section 423 of the Code. The provisions of the Plan shall be construed so
as to extend and limit participation in a manner consistent with the requirements of that section of the Code. 
  
 2. Definitions. Whenever used in this Plan: 
  
 A. “Board of Directors” means the Board of Directors of Time Warner Telecom Inc. 
  
 B. “Code” means the Internal Revenue Code of 1986, as amended. 
  
 C. “Committee” means the Human Resources & Benefits Committee of Time Warner Telecom, or any other
individual or committee that has been delegated the authority to act by and on behalf of the Human Resources & Benefits Committee, or the Board of Directors if there is no Committee. 
  
 D. “Common Stock” means the Class A Common Stock, par value $.01 per share, of the Company. 
  
 E. “Company” means Time Warner Telecom Inc. and any
subsidiary thereof. 
  
 F. “Compensation” means:
the actual cash compensation paid to an Eligible Employee during a Purchase Period, including base pay, overtime, bonuses, cash incentives and commissions, but excluding relocation allowances, one-time recognition awards, fringe benefits and
severance pay. 
  
 G. “Date of Offering” means
each April 1 and October 1 and or such other dates as the Committee may designate for semi-annual offerings under Section 4 of this Plan. The initial Date of Offering in 2004 will be October 1, 2004. 
  
 H. “Eligible Employee” means any person who is a regular
employee scheduled to work at least 20 hours per week on a regular basis as of a Date of Offering during the term of this Plan; provided, however, that “Eligible Employee” may not include any person who immediately prior to the offering on
a Date of Offering: (i) is a director of the Company; or (ii) would be deemed for purposes of Code § 423(b)(3) to own stock possessing five percent 

  

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(5%) or more of the total combined voting power or value of all classes of stock of the Company. In the sole discretion of the Board of Directors, all
employees who would be deemed to be “insiders” pursuant to Section 16 of the Securities Exchange Act of 1934 may be excluded from the definition of “Eligible Employee” for purposes of any one or more offerings under Section 4 of
the Plan. 
  
 I. “Market Price” means the
closing sale price for Common Stock (as reported in the Nasdaq National Market Issues listing published in The Wall Street Journal) on a given day or, if no sales of Common Stock were made on that day, on the next closest day within the Purchase
Period on which sales were made and prices reported. If the Common Stock of the Company is not admitted to trading on a public market on the dates for which closing prices of the Common Stock are to be determined, then reference shall be made to the
fair market value of the Common Stock on that date, as determined on such basis as shall be established or specified by the Committee and/or the Board of Directors. 
  
 J. “Offering Price” means eighty-five percent (85%) of the Market Price of Common Stock on a Date of
Offering. 
  
 K. “Plan” means the Time Warner
Telecom 2004 Qualified Stock Purchase Plan. 
  
 L.
“Purchase Period” means the period beginning on a Date of Offering and ending the day prior to the next succeeding Date of Offering, during which periods payroll deductions may be made from the Compensation of Eligible Employees
accepting an option under an offering hereunder for the period then ending. 
  
 M. “Purchase Price” means the aggregate purchase price for the Common Stock subject to an Eligible Employee’s option, calculated by multiplying the number of shares of Common Stock for which the
Eligible Employee accepted an option pursuant to Section 5A by the Offering Price or the Alternative Offering Price (as defined in Section 11), whichever is applicable. 
  
 3. Scope of the Plan. Options to purchase shares of Common Stock may be granted by the Company to Eligible Employees during
the no more than three year period commencing October 1, 2004, as hereinafter provided, but not more than 600,000 shares of Common Stock (subject to adjustment as provided in Paragraph 15) shall be purchased pursuant to such options. All options
granted pursuant to this Plan shall be subject to the same terms, conditions, rights and privileges. The shares of Common Stock delivered by the Company pursuant to this Plan may be treasury shares, newly issued shares, or both. If a registration
statement or other exemption from registration is not then in effect under the Securities Act of 1933 (the “Securities Act”), the Plan shall in all cases be administered to comply with Rule 701 of the Securities Act as then in effect.

  

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 4. Offerings. Subject to the terms and conditions of this Plan, the Board of Directors through the
Committee shall make an offering on October 1, 2004 (the initial Date of Offering) to Eligible Employees to purchase Common Stock under this Plan, and thereafter such offering shall be as of each subsequent Date of Offering to Eligible Employees to
purchase Common Stock under this Plan. Unless the Committee approves a greater number of shares, the maximum number of shares of Common Stock that may be offered to Eligible Employees in any offering under this Plan is 100,000. 
  
 5. Amount of Common Stock Each Eligible Employee May Purchase. 
  
 A. Anything herein to the contrary notwithstanding, subject to the
provisions of this Plan, and as to any offering made hereunder, each Eligible Employee shall be offered an option to purchase the number of shares of Common Stock determined as of the end of the Purchase Period that could be purchased with the
payroll deductions designated by the Eligible Employee pursuant to Section 6.B, based on the lower of either the Offering Price or the Alternative Offering Price. Each Eligible Employee may designate from one percent (1%) to fifteen percent (15%)
(in whole percentage points) of his or her Compensation to be deducted from his or her Compensation during the Purchase Period for the purchase of Common Stock in the offering. 
  
 B. Anything herein to the contrary notwithstanding, if any Eligible Employee offered an option to purchase shares of
Common Stock hereunder would be deemed for the purposes of Code §§ 423(b)(3) and 424(d) to own stock (including the maximum number of shares of Common Stock covered by the option determined pursuant to the foregoing formula) possessing
five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company, the maximum number of shares of Common Stock covered by the option shall be reduced to that number of shares which, when added to the stock
which such person is so deemed to own (excluding the maximum number of shares of Common Stock covered by the option determined pursuant to the foregoing formula), is less than such five percent (5%). 
  
 C. Anything herein to the contrary notwithstanding, no Eligible
Employee may be granted an option under this Plan which (within the meaning of the limitation provided by Code § 423(b)(8)) would permit his or her rights to purchase stock under all qualified employee stock purchase plans of the Company to
accrue at a rate in excess of $25,000 of fair market value of the Common Stock (as of the time of grant) for each calendar year for which such option is outstanding at any time. If such be the case with respect to an option under this Plan
determined pursuant to the foregoing formula, such option shall be reduced to cover only the greatest number of shares an option for which may be granted within the limitation provided by Code § 423(b)(8). 
  
 D. If Eligible Employees elect, in any one offering, to accept
options to an extent which would result (if options were granted on that basis) in the granting of options for that offering to purchase more than the aggregate number of shares of Common Stock specified by the Committee for that offering, the
Committee shall adjust such options on a pro rata basis at the end of the Purchase Period, by applying to the number of shares for each Eligible Employee resulting from the calculation provided for in Section 11 the same percentage that results from
dividing the maximum number of shares specified by the Committee for that 

  

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offering by the aggregate number of shares that would result from the calculations provided in Section 11 for all Eligible Employees, so that the aggregate
number of shares subject to purchase under that offering does not exceed the number of shares specified by the Committee. 
  
 6. Method of Participation. 
  
 A. The Company shall give notice to Eligible Employees of each offering of options to purchase shares of Common Stock pursuant to Paragraph 4 of
this Plan and the terms and conditions for each offering, including the total number of shares available for purchase under the Plan during that offering, and such other information as the Company may determine. Such notice is subject to revision by
the Company at any time prior to the Date of Offering, which is the date of grant of the option. 
  
 B. Each Eligible Employee who, in accordance with Paragraph 5.A above, desires to accept all or any part of the option to purchase shares of Common
Stock under an offering shall signify his or her election to do so on a date on or before the Date of Offering, as specified in the notice of offering provided to Eligible Employees pursuant to Paragraph 4. The notice of election, or a cancellation
or any revision of such notice of election, shall be in the form and manner prescribed by the Committee, which may include on-line enrollment. Each such Eligible Employee also shall authorize the Company, in the form and manner prescribed in the
notice, to make payroll deductions to cover the Purchase Price of those shares of Common Stock for which he or she has elected to accept an option. Such election and authorization shall continue in effect, unless and until such Eligible Employee
withdraws from this Plan, modifies his or her authorization and designation, or terminates his or her employment with the Company, as hereinafter provided. 
  
 C. Following each Date of Offering, the Company shall, as soon as practicable, provide each Eligible Employee accepting an option under the
offering a notice confirming the rate of periodic payroll deductions elected by the Eligible Employee during the Purchase Period. If the elections for any offering are made through electronic enrollment pursuant to Section 6.B, the Company need not
provide confirmation notices so long as the on-line enrollment process includes the capability for the Eligible Employee to print a confirmation of his or her election. 
  
 D. Any Eligible Employee who does not make a timely election as provided in Paragraph 6.B above, shall be deemed to
have elected not to accept any part of such option. Such election shall be irrevocable for such offering. 
  
 7. Payroll Deductions. The payroll deductions elected by each Eligible Employee who has elected to accept the option offered to him or her shall, during the Purchase Period, be deducted from the Eligible
Employee’s Compensation commencing with the first applicable payroll period beginning in the Purchase Period and continuing until the last payroll period of the Purchase Period, subject to Sections 8 and 9. 
  
 8. Right to Reduce or Stop Deductions. An Eligible Employee who has accepted an
option to purchase shares of Common Stock may, at any time prior to the 30th day before the last day of the Purchase
Period, direct the Company to (i) reduce his or her payroll deduction, or (ii) make no 

  

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further deductions. Upon either of such actions, payroll deductions with respect to such option shall be reduced or discontinued. If the employee has
directed that payroll deductions be reduced or discontinued, any sum previously deducted in respect of the offering shall be retained by the Company until the end of the Purchase Period, and shall be applied, along with any additional deductions at
the reduced rate, to the exercise of the employee’s option as provided in Paragraph 11. 
  
 Any Eligible Employee who stops payroll deductions may not thereafter resume payroll deductions for the Purchase Period, and any Eligible Employee who decreases payroll deductions may not thereafter further decrease
or increase such contributions, except that he or she may stop such contributions during the Purchase Period. Notification of an Eligible Employee’s election to reduce or terminate deductions to cancel an option or otherwise withdraw funds
shall be made by the filing of an appropriate notice to such effect with the Company. 
  
 9. Right to Withdraw. In addition to the reduction or cessation of contributions in Paragraph 8, any Eligible Employee may direct the Company to cancel the entire option prior to the 30th day before the last day of the Purchase Period or request return of any portion of his or her account. If the employee has so directed, the Company
shall stop automatically any payroll deduction for the employee and shall, as soon as practicable, refund all requested amounts credited to the account of such employee with respect to the applicable offering. Notification of an Eligible
Employee’s election to cancel an option or otherwise withdraw funds shall be made by the filing of an appropriate written and signed notice to such effect with the Company. 
  
 10. Termination of Employment. 
  
 A. In the event the employment of an Eligible Employee who has accepted an option to purchase shares of Common Stock is terminated prior to
conclusion of the Purchase Period, because of death, permanent disability, or retirement at or after age 65 (or earlier with the Company’s consent), the employee (or his or her legal representative, if applicable) may either: 
  
 (1) cancel the option, in which event the Company shall, as soon as
practicable, refund all amounts credited to his or her account under any offering in which he or she is participating under this Plan; or 
  
 (2) elect to receive at the conclusion of the Purchase Period that number of whole shares of Common Stock (not to exceed the shares subject to the option,
as the same may be adjusted hereunder) which those payroll deductions actually made are sufficient to purchase, plus the cash balance credited to his or her account, if any. 
  
 For purposes of this paragraph, “permanent disability” shall mean “disability” as
defined under the Company’s long term disability plan or insurance policy as then in effect. In the absence of such plan or policy, “permanent disability” shall mean the inability of an individual to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. The Company may request
reasonable proof of disability. 
  

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 B. The election of an Eligible Employee (or his or her legal representative, if applicable)
pursuant to Paragraph 10.A above, shall be made within three months of the event causing the termination of employment, but not later than the conclusion of the Purchase Period (except in the case of death). Written and signed notification of the
election shall be filed with the Company and, in the event no notification has been filed within the prescribed period, the Company shall act in accordance with provision 10.A(1) above. 
  
 C. In the event the employment of an Eligible Employee who has accepted an option to purchase shares of Common Stock
is terminated for any reason other than those specified in Paragraph 10.A, the Company shall, as soon as practicable, refund all amounts credited to his or her account without interest under any offering in which he or she is participating under
this Plan and such former employee shall have no right to purchase Common Stock under this Plan. Any Eligible Employee who is on a leave of absence for longer than ninety days and whose reemployment is not guaranteed either by statute or by contract
shall be deemed to have terminated employment for purposes of this Plan on the ninety-first day of such absence. 
  
 11. Exercise of Option and Purchase of Shares. As of the last day of the Purchase Period, the Company shall determine an Alternative Offering Price, which
shall be eighty-five percent (85%) of the Market Price of the Common Stock on such last day of the Purchase Period. Unless an Eligible Employee who has accepted an option under the offering has subsequently withdrawn from the offering pursuant to
Paragraph 9 or 10.A(1) hereof, his or her option shall be deemed to have been exercised as of the last day of the applicable Purchase Period and become on such date an irrevocable obligation to purchase Common Stock in accordance with the provisions
of this Plan. The number of shares of Common Stock so purchased by each such Eligible Employee shall be determined by dividing the amount accumulated in his or her account during the Purchase Period by the lower of either the Offering Price or the
Alternative Offering Price. Any difference between the amount deducted under paragraphs 6.B and 7 and the Purchase Price will be refunded to the Eligible Employee, without interest. Within 15 days after the close of each Purchase Period, the Company
will credit to each Eligible Employee’s account with a brokerage firm selected by the Committee the number of shares of Common Stock, determined as set forth above, purchased by each Eligible Employee. Notwithstanding the foregoing, with an
employee’s written and signed election, certificates for the number of whole shares of Common Stock purchased by the employee shall be issued and delivered to him or her (for a reasonable fee as determined under the terms of the Company’s
administrative contract with the brokerage firm). No certificates for fractional shares will be issued under the Plan or any option. 
  
 12. Rights as a Stockholder. An Eligible Employee who has accepted an option to purchase shares of Common Stock under this Plan is not entitled to any of
the rights or privileges of a stockholder of the Company with respect to such shares, including the right to receive any dividends which may be declared by the Company, until such time as he or she actually has paid the Purchase Price for such
shares and certificates have been issued to him or her in accordance with Paragraph 11 hereof. 
  

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 13. Rights Not Transferable. An Eligible Employee’s rights under this Plan and options accepted by him
or her hereunder are exercisable only by the Eligible Employee during his or her lifetime, and may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution. Any attempt to sell, pledge,
assign or transfer the same shall be void, and automatically shall cause the option held by the Eligible Employee to be terminated. In such event, the Company shall refund all remaining amounts credited to the account of such Eligible Employee under
this Plan. 
  
 14. Administration of the Plan. 
  
 A. This Plan shall be administered by the Committee, which is
authorized to make such uniform rules as may be necessary to carry out its provisions. The Committee shall determine any questions arising in the administration, interpretation and application of this Plan, and all such determination shall be
conclusive and binding on all parties. 
  
 B. If any
option under this Plan shall be canceled, lapse or terminate unexercised, the number of shares of Common Stock covered thereby shall again become available for sale under this Plan during subsequent Purchase Periods. 
  
 C. In applying any provision of the Plan that provides for a refund
of monies to an Eligible Employee, such refund will be issued in accordance with the payroll practices of the Company, but not more frequently than once per month. 
  
 15. Adjustment Upon Changes in Capitalization. In the event of any change in the Common Stock of the Company by reason of
stock dividends, split-ups, corporate separations, recapitalizations, mergers, consolidations, combinations, exchanges of shares and the like, the aggregate number and class of shares available under this Plan and the number, class and Offering
Price of shares under option but not yet purchased under this Plan, shall be adjusted appropriately by the Committee. 
  
 16. Registration of Certificates. Stock certificates may be registered in the name of the Eligible Employee, or, if he or she so designates, in the Eligible
Employee’s name jointly with another individual, with right of survivorship. 
  
 17. Amendment of Plan. The Board of Directors may at any time amend this Plan in any respect that does not adversely affect the rights of Eligible Employees pursuant to options accepted under the Plan, except that, without
stockholder approval on the same basis as required by paragraph 21.A, no amendment shall be made (i) increasing the number of shares to be reserved under this Plan, (ii) decreasing the Offering Price, or (iii) changing employees eligible to
participate in the Plan, and no amendment may be made requiring stockholder approval under any applicable stock exchange rules without obtaining stockholder approval Plan amendments may be communicated to Eligible Employees by Company mail, Company
electronic mail or by posting a copy of the amended plan on the Company’s intranet or public drive. Upon request, the Company will provide an Eligible Employee with a paper copy of the Plan, as amended to the date of request. 
  

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 18. Termination of the Plan. This Plan shall consist of an offering commencing October 1, 2004 and ending
March 31, 2005, and thereafter consecutive semi-annual offerings beginning on the applicable Date of Offering each year. All rights of Eligible Employees in any offering hereunder shall terminate at the earlier of the conclusion of the last Purchase
Period authorized herein on September 30, 2007 or: 
  
 A.
On the day that Eligible Employees participating in offerings made under this Plan become entitled to purchase a number of shares of Common Stock equal to or greater than the number of shares remaining available for purchase under the Plan; or

  
 B. At any time, at the discretion of the Board of
Directors after thirty days’ notice has been given to the employees. 
  
 Upon
termination of this Plan, shares of Common Stock shall be issued to Eligible Employees in accordance with Paragraph 10.A, and cash, if any, remaining in the accounts of the Eligible Employees shall be refunded to them without payment of interest, as
if the Plan were terminated at the end of a Purchase Period. 
  
 19.
Governmental Regulations and Listing. All rights granted or to be granted to Eligible Employees under this Plan are expressly subject to all applicable laws and regulations and to the approval of all governmental authorities required in
connection with the authorization, issuance, sale or transfer of the shares of Common Stock reserved for this Plan, including, where applicable and without limitation, there being a current registration statement of the Company under the Securities
Act of 1933, as amended, covering the shares of Common Stock purchasable under options on the last day of the Purchase Period applicable to such options, options (and if such a registration statement shall not be effective at such time as it is
required to be, the term of such options and the Purchase Period may, at the Company’s sole discretion, be extended as the Company deems appropriate) or there being an exemption from registration available in the Company’s sole judgment.
If applicable, all such rights hereunder are also similarly subject to effectiveness of an appropriate listing application to the Nasdaq Stock Market, a national stock exchange, or other public market on which the Common Stock trades covering the
shares of Common Stock under the Plan upon official notice of issuance. 
  
 20.
Tax Consequences. No income is recognized by an Eligible Employee when the option is granted, or when the option is exercised. However, the Eligible Employee must include as ordinary taxable income at the time of sale or other taxable
disposition of the Common Stock, the 15% discount of the option price (equal to the lesser of: (1) the amount, if any, by which the fair market value of the Common Stock when the option was granted exceeds the option price; or (2) the amount, if
any, by which the Common Stock’s fair market value at the time of such disposition or death exceeds the exercise price paid). In general, the Eligible Employee also will recognize capital gain on any increase in fair market value in the Common
Stock (in excess of the Employee’s basis in the Common Stock), if the disposition occurs at least two years after the date on which the option is granted and if the Eligible Employee has held the Common Stock at least twelve months (the
“Holding Period”). If the Eligible Employee disposes of the Common Stock acquired by an exercise of an option under the Plan before the expiration of the Holding Period, the Eligible Employee must recognize as ordinary compensation income
in the year of the disposition the difference between the Common Stock’s option price and the fair market value on the date exercised. The tax consequences of participation in the Plan may change as a result of changes in the Internal Revenue
Code and the regulations thereunder after the date of adoption of the Plan. 
  

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 21. Miscellaneous. 
  
 A. This Plan shall be submitted for approval by the stockholders of the Company no later than 12 months from the date
of adoption of the Plan by the Board of Directors in accordance with standard corporate procedures. Exercise of options accepted prior thereto is subject to the condition that prior to such date this Plan shall be approved by such stockholders in
the manner contemplated by Code § 423(b)(2). If not so approved prior to such date, this Plan shall terminate, all options hereunder shall be canceled and be of no further force or effect, and the Company shall, as soon as practicable, refund
to all Eligible Employees, all sums credited to their respective accounts in accordance with Paragraph 7 hereof without interest. 
  
 B. This Plan shall not be deemed to constitute a contract of employment between the Company and any Eligible Employee, nor shall it interfere with
the right of the Company to terminate any Eligible Employee and treat him or her without regard to the effect which such treatment might have upon him or her under this Plan. 
  
 C. This Plan shall be construed and its provisions enforced and administered in accordance with the laws of the State
of Colorado, and in accordance with the applicable provisions of Code §§ 421 and 423 and all related Code sections applicable to a qualified “employee stock purchase plan.” 
  
 D. Wherever appropriate as used herein, the masculine gender may be
read as the feminine gender, the feminine gender may be read as the masculine gender, the singular may be read as the plural and the plural may be read as the singular. 
  
 E. If any one or more of the terms, conditions or provisions or any part hereof contained in this Plan shall for any
reason or to any extent be held invalid, illegal or unenforceable by any court or governmental agency of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect the remainder of such terms, conditions or provisions,
or any other provision of this Plan, and this Plan shall be construed as if the invalid, illegal or unenforceable term, condition or provision had never been contained herein, and each term, condition or provision shall be valid and enforced to the
fullest extent permitted by law. 
  
 F. The Company shall
be excused from performing any obligation required of it by the terms of this Plan, to the extent and for so long that such performance is prevented by acts of God, floods, storms, earthquakes, fires, labor disputes, acts of war, restraint of trade
or state or federal government, and inability to obtain supplies, manpower or transportation or by any similar cause or causes beyond the Company’s reasonable control, provided that the Company’s performs any obligation excused by this
section as soon as practicable after the cause of the delay is removed. 
  

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 IN WITNESS WHEREOF, the duly authorized representatives of the Company have executed this Plan effective June 3, 2004.

  

			
	 TIME WARNER TELECOM INC.
 Plan Sponsor

		
	 By:
	 	 /s/ Julie Rich

	 Title: Senior Vice President, Human Resources and
 Administration

	
	 Date: June 3, 2004

  

 10Qualified Stock Puchase Plan

 Exhibit 4.3 
  
 AS AMENDED AS OF SEPTEMBER 10, 2003

  
 TIME WARNER TELECOM INC. 
  
 2000 EMPLOYEE STOCK PLAN 
  
 SECTION 1: PURPOSE 
  
 The general purpose of the Time Warner Telecom Inc. 2000 Employee Stock Plan
(the “Plan”) is to further the growth and development of Time Warner Telecom Inc. (the “Company”) by affording an opportunity for stock ownership through the grant of Options and Restricted Stock, shares of Common Stock and Stock
Appreciation Rights to selected employees, directors and consultants of the Company and its subsidiaries who are responsible for the conduct and management of its business or who are involved in endeavors significant to its success. 
  
 SECTION 2: DEFINITIONS 
  
 Unless otherwise indicated, the following words when used herein have the following meanings:

  
 a. “Affiliate” means, with respect to any person or
entity, a person or entity that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such person or entity. 
  
 b. “Approved Transaction” means any transaction in which the Board of Directors (or, if approval of the Board of
Directors is not required as a matter of law, the stockholders of the Company) approves (i) any consolidation or merger of the Company in which the Company is not the continuing or surviving company or pursuant to which shares of Common Stock would
be converted into cash, securities or other property, other than a merger of the Company in which the equity holders of the Company immediately prior to the merger have the same proportionate ownership of the equity value of the surviving company
immediately after the merger, (ii) any sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Company, or (iii) the adoption of any plan or proposal for
the liquidation or dissolution of the Company. 

 c. “Board of Directors” means the Board of Directors of the Company. 
  
 d. “Board Change” means such time as the Designated Class B
Stockholders as a group cease to have the ability to elect a majority of the Board of Directors (other than the chief executive officer of the Company and External Directors; provided that External Directors shall be included in
calculating whether the foregoing majority requirement is satisfied if the Directors nominated by the Designated Class B Stockholders do not constitute a majority of the committee that selects the Board’s nominees for External Directors) and a
“person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the Designated Class B Stockholders) has become the ultimate “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act) of more than 35% of the total voting power of the voting interests of the Company on a fully diluted basis and such ownership represents a greater percentage of the total voting power of the voting interests of the Company, on a fully
diluted basis, than is held by the Designated Class B Stockholders as a group on such date. 
  
 e. “Cause” means, in the absence of an employment agreement a termination on account of (a) insubordination, (b) dishonesty, (c) moral turpitude, (d) refusal to perform duties and responsibilities for any
reason other than illness or incapacity, (e) repeated acts of substance abuse that are materially injurious to the Company, (f) material violation of a Company policy or (g) fraud, misappropriation, embezzlement, operation of a Company vehicle when
intoxicated or other behavior that in the opinion of counsel to the Company (which opinion will be conclusive) constitutes a misdemeanor or felony under applicable law, regardless of whether actually prosecuted for or convicted of an offense;
provided, however, that if such termination occurs within 12 months after an Approved Transaction or Board Change, termination for cause in the absence of an employment agreement means only a felony conviction. 
  
 f. “Code” means the Internal Revenue Code of 1986, as amended from
time to time. 
  
 g. “Committee” means the Human
Resources and Benefits Committee of the Board of Directors. 
  
 h.
“Common Stock” means the Company’s Class A common stock (par value $.01 per share) and any share or shares of the Company’s capital stock hereafter issued or issuable in substitution for such shares. 
  

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 i. “Director” means a member of the Board of Directors. 
  
 j. “Designated Class B Stockholders” means Time Warner Inc. and
Advance/Newhouse Partnership and their respective Affiliates. 
  
 k. “External Director” means a Director who is not an employee of the Company or an employee of a Designated Class B Stockholder. 
  
 l. “Freestanding SAR” means the type of SAR described in Section 13.3. 
  
 m. “Grantee” means any employee or Director who is awarded shares of Common Stock pursuant to a Stock Award.

  
 n. “Holder” means any employee, Director or
consultant who is granted an Option under the Plan. “Holder” also means the court-appointed legal representative of a Holder and any other person who acquires the right to exercise an Option by bequest or inheritance. 
  
 o. “Incentive Stock Option” means any option granted to an eligible
employee (including an employee who is also a Director) under the Plan, which the Company intends at the time the option is granted to be an Incentive Stock Option within the meaning of Section 422 of the Code. 
  
 p. “SAR” means a stock appreciation right subject to the terms of
Section 13. 
  
 q. “Nonqualified Stock Option” means any
option granted to an eligible employee, Director or consultant under the Plan which is not an Incentive Stock Option. 
  
 r. “Option” means and refers collectively to Incentive Stock Options and Nonqualified Stock Options. 
  
 s. “Option Agreement” means the agreement specified in Section 7.2.

  
 t. “Parent” shall mean a parent corporation of the
Company as defined in Section 424(e) of the Code. 
  
 u.
“Related Option” means an Option which has been granted in conjunction with a Tandem SAR. 
  
 v. “Restricted Stock” means shares of Common Stock awarded to an 
  

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 eligible employee (including an employee who is also a Director) which are subject to the restrictions set forth in
Section 10 of the Plan and the Restricted Stock Agreement. “Restricted Stock” shall also include any shares of the Company’s capital stock issued as the result of a dividend on or split of Restricted Stock. Upon termination of the
restrictions, such Common Stock or other capital stock shall no longer be Restricted Stock. 
  
 w. “Restricted Stock Agreement” means the agreement specified in Section 11.2. 
  
 x. “Restricted Stock Award” means the grant of shares of Restricted Stock under this Plan. 
  
 y. “Stock Award” means the grant of shares of Common Stock or
Restricted Stock under this Plan. 
  
 z. “Restriction
Period” is the period set forth in the Restricted Stock Agreement beginning on the date of grant of the Restricted Stock Award and ending on the vesting of the Restricted Stock. 
  
 aa. “Section 16 Individual” means a participant who is subject to the reporting requirements of Section 16 of the
Exchange Act with respect to the Company. 
  
 bb.
“Subsidiary” means a subsidiary corporation of the Company as defined in Section 424(f) of the Code. 
  
 cc. “Tandem SAR” means the type of SAR described in Section 13.2. 
  
 dd. “Total Disability” means a permanent and total disability as defined in Section 22 (e) (3) of the Code.

  
 SECTION 3: EFFECTIVE DATE 
  
 The effective date of the Plan is June 16, 2000; provided, however, that the
adoption of the Plan by the Board of Directors is subject to approval and ratification by the stockholders of the Company within 12 months of the effective date and no Options may be exercised until such ratification has occurred. Options and Stock
Awards granted under the Plan prior to approval of the Plan by the stockholders of the Company are subject to approval of the Plan by the stockholders of the Company. 
  

 4 

 SECTION 4: ADMINISTRATION 
  
 4.1 Administrative Committee. The Plan shall be administered by the Committee. The Board of Directors may from time
to time remove members from or add members to the Committee, and vacancies on the Committee, howsoever caused, will be filled by the Board of Directors. 
  
 4.2 Committee Meetings and Actions. The Committee will hold meetings at such times and places as it may determine. A majority of the members of the
Committee constitutes a quorum, and the acts of the majority of the members present at a meeting or a consent in writing signed by all members of the Committee shall be the acts of the Committee and shall be final, binding and conclusive upon all
persons, including the Company, its Affiliates, its stockholders, and all persons having any interest in Options, SARs or Stock Awards which may be or have been granted pursuant to the Plan. 
  
 4.3 Powers of Committee. The Committee has the full and exclusive
right to grant and determine terms and conditions of all Options, SARs and Stock Awards granted under the Plan and the form of all Option Agreements and Restricted Stock Agreements and to prescribe, amend and rescind rules and regulations for
administration of the Plan. In granting Options, SARs and Stock Awards, the Committee will take into consideration the contribution the Holder or Grantee has made or may make to the success of the Company or its Affiliates and such other factors as
the Committee shall determine. The Committee may delegate all or any part of its authority under this Plan to the Chief Executive Officer of the Company for purposes of granting and administering awards granted to persons other than persons who are
then subject to the reporting requirements of Section 16 Individuals. The Chief Executive Officer of the Company may, in turn, delegate such authority to such other officer of the Company as the Chief Executive Officer may determine. Notwithstanding
the foregoing, all awards of Options, SARs and Stock Awards to Section 16 Individuals must be approved in advance of the grant by the Compensation Committee of the Board of Directors and all awards of Options and Stock Awards to the External
Directors must be approved by the Board of Directors. 
  
 4.4
Plan Review. The Committee will conduct an annual review of the Plan and determine whether the Plan should be continued and the appropriate level of Option grants, SARs and Stock Awards for the year, if any. 
  
 4.5 Interpretation of Plan. The determination of the Committee as to
any disputed question arising under the Plan, including questions of construction and interpretation, is final, binding and conclusive upon all persons, including the Company, its Affiliates, its stockholders, and all persons having any interest in
Options or SARs or Stock Awards granted pursuant to the Plan. 
  

 5 

 4.6 Indemnification. The Company will indemnify and hold harmless each person who is or has been a
member of the Committee or of the Board of Directors against and from any loss, cost, liability or expense that may be imposed upon or reasonably incurred in connection with or resulting from any claim, action, suit or proceeding to which such
person may be a party or in which such person may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid in settlement thereof, with the Company’s approval, or paid in
satisfaction of a judgment in any such action, suit or proceeding against him, provided such person gives the Company an opportunity, at its own expense, to handle and defend the same before undertaking to handle and defend it on such person’s
own behalf. The foregoing right of indemnification is not exclusive of, and is in addition to, any other rights of indemnification to which any person may be entitled under the Company’s Articles of Incorporation or Bylaws, as a matter of law,
or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 
  
 SECTION 5: STOCK SUBJECT TO THE PLAN 
  
 5.1 Number. The aggregate number of shares of Common Stock which may be issued under Options and Stock Awards granted pursuant to the Plan may not exceed 24,500,000 shares, subject to adjustment in accordance
with Section 5.3. Shares which may be issued under Options and Stock Awards may consist, in whole or in part, of authorized but unissued stock or treasury stock of the Company not reserved for any other purpose. 
  
 5.2 Unused Stock. If any outstanding Option under the Plan expires or
for any other reason ceases to be exercisable, in whole or in part, other than upon exercise of the Option or a SAR, the shares which were subject to such Option and as to which the Option had not been exercised shall continue to be available under
the Plan. Any Restricted Stock that is forfeited to the Company pursuant to restrictions contained in this Plan or the Restricted Stock Agreement will also be counted in determining the number of shares of Common Stock available to be awarded under
the Plan. 
  
 5.3 Adjustment for Change in Outstanding
Shares. In the event that the Board determines that any dividend or other distribution (whether in the form of cash, shares of Common Stock, securities or other property), recapitalization, reorganization, merger, consolidation, issuance or
exchange of shares of Common Stock, other ownership interests or other securities of the Company, issuance of warrants or other rights to purchase shares of Common Stock or other similar corporate transaction or event affects the shares of Common
Stock, then the Board will, in such manner as it may deem equitable to prevent dilution or enlargement of any Holder’s or Grantee’s rights, adjust any or all of (a) the number of shares of Common Stock, other ownership interests or other
securities of the Company (or number and kind of other securities or property) with respect to which Options, SARs or Stock Awards may be granted, (b) the number of shares of Common 
  

 6 

 Stock, other ownership interests or other securities of the Company (or number and kind of other securities or property)
subject to outstanding Options, SARs or Stock Awards or the percentage of interests, other ownership interests or other securities of the Company subject to shares of Common Stock, and (c) the exercise price with respect to any Option or SAR or, if
deemed appropriate, make provision for a cash payment to the Holder of an outstanding Option or SAR in consideration for the cancellation of such Option. No adjustment will be made on account of the issuance of shares of Common Stock with respect to
Options. 
  
 5.4 Reorganization or Sale of Assets. If the
Company is merged or consolidated with another corporation and the Company is not the surviving corporation, or if all or substantially all of the assets of the Company are acquired by another entity, or if the Company is liquidated or reorganized
(each of such events being referred to hereinafter as a “Reorganization Event”), the Committee must, unless the transaction also constitutes a Board Change or an Approved Transaction, either (1) make appropriate provision for the
protection of any such outstanding Options by the substitution on an equitable basis of appropriate stock of the Company, or of the merged, consolidated or otherwise reorganized corporation, which will be issuable in respect of the Common Stock,
provided that no additional benefits shall be conferred upon Holders as a result of such substitution, and provided further that the excess of the aggregate fair market value of the shares subject to the Options immediately after such substitution
over the purchase price thereof is not more than the excess of the aggregate fair market value of the shares subject to such Options immediately before such substitution over the purchase price thereof, or (2) upon written notice to all Holders,
which notice must be given not less than 20 days prior to the effective date of the Reorganization Event, provide that all unexercised Options and SARs must be exercised within a specified number of days (not less than ten) of the date of such
notice or such Options and SARs will terminate. In response to a notice provided pursuant to clause (2) of the preceding sentence, a Holder may make an irrevocable election to exercise the Holder’s Option contingent upon and effective as of the
effective date of the Reorganization Event. The Committee may, in its sole discretion, accelerate the exercise dates of outstanding Options in connection with any Reorganization Event which does not also result in a Board Change. 
  
 SECTION 6: ELIGIBILITY 
  
 All full- or part-time employees of the Company and its Subsidiaries are
eligible to receive Incentive Stock Options, Nonqualified Stock Options and Stock Awards under the Plan. External Directors are eligible to receive Nonqualified Stock Options or Stock Awards as the Board of Directors may approve, but not Incentive
Stock Options, under the Plan. Consultants are eligible to receive Nonqualified Stock Options, but not Incentive Stock Options or Stock Awards, under the Plan. Any Director who is otherwise eligible to participate, who makes an election in writing
not to receive any grants under the Plan, is not eligible to receive any such grants during the period set forth in such election. 
  

 7 

 SECTION 7: GRANT OF OPTIONS 
  
 7.1 Grant of Options. The Committee may from time to time in its discretion determine which of the eligible
employees, Directors and consultants of the Company or its Subsidiaries should receive Options, the type of Options to be granted (whether Incentive Stock Options or Nonqualified Stock Options), the number of shares subject to such Options, whether
the Holder will also receive Tandem SARs, and the dates on which such Options are to be granted. 
  
 7.2 Option Agreement. Each Option granted under the Plan must be evidenced by an Option Agreement setting forth the terms upon which the Option is
granted. Each Option Agreement must designate the type of Options being granted (whether Incentive Stock Options or Nonqualified Stock Options), whether the Holder also receives SARs, and must state the number of shares of Common Stock, as
designated by the Committee, to which that Option pertains. An Option Agreement may be written or may be delivered to Holders by electronic means without a manual signature by the Company or the Holder. More than one Option, and both Options and
Stock Awards, may be granted to an eligible person. 
  
 7.3
Option Price. The Committee will determine the option price per share of Common Stock under each Option to be stated in the Option Agreement. The option price for Incentive Stock Options granted under the Plan may not be less than 100% of the
fair market value (determined as of the day the Option is granted) of the shares subject to the Option. The option price for Nonqualified Stock Options granted under the Plan may not be less than 25% of the fair market value (determined as of the
day the Option is granted) of the shares subject to the Option. 
  
 7.4 Determination of Fair Market Value. For purposes of this Plan, the “fair market value” of a share at a specified date means, unless otherwise expressly provided in this Plan, the closing sale price of a share on that
date or, if no sale of shares occurred on that date, on the next preceding day on which a sale of shares occurred, on the Composite Tape for New York Stock Exchange listed shares or, if shares are not quoted on the Composite Tape for New York Stock
Exchange listed shares, on the Nasdaq National Market or any similar system then in use or, if shares are not included in the Nasdaq National Market or any similar system then in use, the mean between the closing “bid” and the closing
“asked” quotation of a share on the date immediately preceding the date as of which such fair market value is being determined, or, if no closing bid or asked quotation is made on that date, on the next preceding day on which a quotation
is made, on the Nasdaq SmallCap Market or any similar system then in use, provided that if the shares in question are not quoted on any such system, fair market value will be what the Committee determines in good faith to be 100% of the fair market
value of a share as of the date in question. 
  

 8 

 7.5 Duration of Options. Each Option will be of a duration as specified in the Option Agreement;
provided, however, that the term of each Option may not be more than ten years from the date on which the Option is granted and will be subject to early termination as provided in this Plan. 
  
 7.6 Additional Limitations on Grant. No employee may be granted
Incentive Stock Options to the extent that the aggregate fair market value (determined as of the time each Option is granted) of the Common Stock with respect to which any such Options are exercisable for the first time during a calendar year (under
all incentive stock option plans of the Company and its Parent and Subsidiaries) would exceed $100,000. No Incentive Stock Option may be granted to an employee who, at the time the Incentive Stock Option is granted, owns stock (as determined in
accordance with Section 424(d) of the Code) representing more than 10% of the total combined voting power of all classes of stock of the Company or of any Parent or Subsidiary, unless the option price of such Incentive Stock Option is at least 110%
of the fair market value (determined as of the day the Incentive Stock Option is granted) of the stock subject to the Incentive Stock Option and the Incentive Stock Option by its terms is not exercisable more than five years from the date it is
granted. 
  
 7.7 Other Terms and Conditions. The Option
Agreement may contain such other provisions, not inconsistent with the Plan, as the Committee deems appropriate, including, without limitation, provisions that relate the Holder’s ability to exercise an Option conditioned upon the passage of
time or the achievement of specific goals established by the Committee or the occurrence of certain events specified by the Committee. 
  
 7.8 Holder’s Rights as Stockholders. A Holder has no rights as a stockholder of the Company with respect to any shares of Common Stock covered
by an Option until the date full payment has been made and the shares have been issued. 
  
 SECTION 8: EXERCISE OF OPTIONS 
  
 8.1 Manner of Exercise. Subject to the limitations and conditions of the Plan or the Option Agreement, an Option will be exercisable, in whole or in part, from time to time, by giving written notice of exercise to the Secretary of
the Company or a brokerage firm 
  

 9 

 selected by the Company to execute Option exercises specifying the number of shares of Common Stock to be purchased and
will be accompanied by (1) payment in full to the Company of the purchase price of the shares to be purchased, (2) payment in full of such amount as the Company determines to be sufficient to satisfy any liability it may have for any withholding of
federal, state or local income or other taxes incurred by reason of the exercise of the Option, and (3) an investment representation satisfactory to the Company if requested by the Company. Subsequent to the grant of an Option, the Board, at any
time before complete termination of such Option, may accelerate the time or times at which such Option may be exercised in whole or in part (without reducing the term of such Option). 
  
 8.2 Payment of Purchase Price. Payment for shares and withholding taxes must be in the form of either (1) cash, (2) a
check to the order of the Company, or (3) shares of the Common Stock, properly endorsed to the Company, in an amount the fair market value of which on the date of receipt by the Company (as determined in accordance with Section 7.4) equals or
exceeds the aggregate option price of the shares with respect to which the Option is being exercised, or (4) in any combination thereof; provided, however, that no payment may be made in shares of Common Stock unless payment in such form and upon
such exercise has been approved in advance by the Committee. Upon the exercise of any Option, the Company, in its sole discretion, may make financing available to the Holder for the payment of the purchase price on such terms and conditions as the
Committee shall specify. The Company will effect the transfer of the shares purchased under the Option as soon as practicable. 
  
 SECTION 9: RESTRICTIONS ON TRANSFER OF OPTIONS 
  
 Options and SARs granted pursuant to the Plan are not transferable by the Holder other than by will or the laws of descent and distribution and are
exercisable during the Holder’s lifetime only by the Holder (or his or her court appointed legal representative). Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of the Option or SAR contrary to the provisions
hereof, or upon the levy of any attachment or similar process upon the Option or SAR, the Option and SAR will immediately become null and void. With the approval of the Committee, the Option Agreements governing particular Option grants may provide
that Options are transferable without payment of consideration to family members or trusts, partnerships or similar entities for family members of the Holders upon such terms and conditions specified in the Option Agreement. 
  
 SECTION 10: ACCELERATION OF OPTION VESTING 
  
 Unless the applicable Option Agreement provides otherwise, notwithstanding
any contrary waiting period or installment period in any Option Agreement or in the Plan, in the event of any Approved Transaction or Board Change each outstanding Option granted under the Plan will immediately become exercisable in full in respect
of the aggregate number of shares of Common Stock subject to such Options. 
  

 10 

 SECTION 11: GRANT OF STOCK AWARDS 
  
 11.1 Grant of Stock Awards. The Committee may from time to time in its discretion determine whether to grant Stock
Awards and which of the eligible employees of the Company or its Subsidiaries (including employees who are also Directors) should receive Stock Awards, the number of shares subject to such Stock Awards, whether the Stock Awards should be restricted
or unrestricted and the dates on which such Stock Awards are to be granted. The Board of Directors may determine to grant Stock Awards to the External Directors. Restricted Stock Awards will be subject to such terms, conditions, restrictions, and/or
limitations, if any, as the Committee deems appropriate including, without limitation, restrictions on transferability and continued employment of the Grantee and will vest upon satisfaction of the conditions or restrictions as provided in the
Restricted Stock Agreement. The Committee will also determine the performance conditions or other conditions, if any, that must be satisfied before all or part of the applicable restrictions lapse. The Committee may modify or accelerate the delivery
of a Stock Award under such circumstances as it deems appropriate. 
  
 11.2 Restricted Stock Agreement. Each Restricted Stock Award will be evidenced by a written Restricted Stock Agreement setting forth the terms upon which the Restricted Stock Award is granted, the number of shares of Common Stock to
which that Restricted Stock Award pertains and the price, if any, to be paid by the Grantee for the Restricted Stock. More than one Restricted Stock Award, and both Options and Restricted Stock Awards, may be granted to an eligible person.

  
 11.3 Issuance of Restricted Stock. The right to receive
Restricted Stock is conditioned upon the Grantee’s delivery of (1) payment in full to the Company of the purchase price, if any, of the Restricted Stock, (2) an investment representation satisfactory to the Company if requested by the Company,
and (3) a Stock Restriction Agreement meeting the requirements of Section 11.2 if requested by the Company. A Restricted Stock Award may be evidenced by the issuance of a stock certificate or certificates representing the Restricted Stock or by book
entry registration. If certificates are issued, such certificates will remain in the custody of the Company during the Restriction Period and the Grantee must deposit with the Company stock powers or other instruments of assignment, each endorsed in
blank, so as to permit retransfer to the Company of all or a portion of the Restricted Stock that is forfeited or otherwise not become vested in accordance with the Plan and the applicable Restricted Stock Agreement. 
  
 11.4 Forfeiture of Restricted Stock. If the Grantee fails to satisfy
any applicable restrictions, terms and conditions set forth in this Plan or in the Restricted Stock Agreement for any reason other than the death or Total Disability of the Grantee, any Restricted Stock held by such Grantee and affected by such
conditions will be forfeited to the Company in return for the consideration specified in the Restricted Stock Agreement. The Company and its officers are authorized to reflect such forfeiture of Restricted Stock on the Company’s stock ledger.

  

 11 

 SECTION 12: RESTRICTIONS ON TRANSFER OF RESTRICTED STOCK 
  
 12.1 Restrictions. Restricted Stock constitutes issued and outstanding
shares of Common Stock for all corporate purposes. The Grantee will have the right to vote such Restricted Stock, to receive and retain all regular cash dividends and such other distributions, as the Board of Directors may, in its discretion,
designate, pay or distribute on such Restricted Stock, and to exercise all other rights, powers and privileges of a holder of Common Stock with respect to such Restricted Stock, except as set forth in this Section 12. The Grantee is not entitled to
delivery of the stock certificate or certificates representing such Restricted Stock until the Restriction Period has expired and all other vesting requirements with respect thereto have been fulfilled or waived. 
  
 12.2 Prohibition on Transfer. Restricted Stock granted pursuant to the
Plan is not transferrable by the Grantee until all restrictions on such Restricted Stock have lapsed, except by will or the laws of descent in the event of the Grantee’s death. Any attempt to transfer, assign, pledge, hypothecate or otherwise
dispose of the Restricted Stock, contrary to the provisions hereof, and levy of any attachment or similar process upon the Restricted Stock, will be null and void. The Company will not recognize or give effect to such transfer on its books and
records or recognize the person or persons to whom such purported transfer has been made as the legal or beneficial owner of the Restricted Stock. 
  
 12.3 Legend. Certificates representing shares of Restricted Stock will bear the following legend, in addition to such other legends as counsel to
the Company may deem appropriate: 
  
 NOTICE OF RESTRICTIONS ON
TRANSFER 
  
 THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED
HEREBY ARE SUBJECT TO THE PROVISIONS OF THE COMPANY’S 2000 EMPLOYEE STOCK PLAN AND A RESTRICTED STOCK AGREEMENT, WHEREBY THE TRANSFER IN ANY MANNER OF SUCH SHARES OF STOCK OR ANY INTEREST THEREIN IS RESTRICTED AND THE SHARES OF STOCK ARE
SUBJECT TO FORFEITURE. A COPY OF SAID PLAN AND SAID AGREEMENT IS ON FILE AT THE REGISTERED OFFICE OF THE COMPANY WHERE THEY MAY BE INSPECTED. 
  
 To the extent that restrictions on the Restricted Stock have lapsed, certificates bearing the legend provided for herein may be submitted to the Company,
and the Company will reissue such certificates free of such legend. 
  

 12 

 SECTION 13: STOCK APPRECIATION RIGHTS 
  
 13.1 Stock Appreciation Rights in General. The Committee may, but is not obligated to, grant SARs in tandem with all
or a portion of a related stock option under the Plan (“Tandem SARs”), or separately (“Freestanding SARs”). Except as set forth in Section 5.4, the effective date of exercise of a SAR is the date on which the Company receives
notice from the Holder of the exercise thereof. The Committee may provide that a SAR shall be deemed to be exercised at the close of business on the scheduled expiration date of such SAR if at such time the SAR by its terms remains exercisable and,
if so exercised, would result in a payment to the holder of such SAR. Except as provided in Sections 13.2 and 13.3, upon the exercise of SARs, the Holder will receive in cash an amount equal to the fair market value (as determined in accordance with
Section 7.4) on the date of exercise of such SAR of the shares of Common Stock with respect to which such SAR has been exercised less the aggregate exercise price of the related Option (or the exercise price established by the Committee in the case
of Freestanding SARs). The Committee may, by way of the Award Agreement or otherwise, determine such other terms, conditions, restrictions, and/or limitations, if any, of any SAR Award, provided they are not inconsistent with the Plan. 

 
 13.2 Tandem Stock Appreciation Rights. A Tandem SAR may be granted
either at the time of the grant of the related Option or at any time thereafter during the term of the Option. In the case of SARs granted in tandem with Options granted prior to the grant of such SARs, the appreciation in value is the difference
between the Option price of such related Option and the Fair Market Value of the Common Stock on the date of exercise. A Tandem SAR is exercisable to the extent, and only to the extent, that the related Option is exercisable. No Tandem SAR is
exercisable after expiration, termination or exercise of the related Option. If a related Option is exercised as to some or all of the shares covered by the Award, the related Tandem SAR, if any, shall be canceled automatically to the extent of the
number of shares covered by the Option exercise. Upon exercise of a Tandem SAR as to some or all of the shares covered by the Award, the related Option shall be canceled automatically to the extent of the number of shares covered by such exercise.
SARs are exercised in the same manner as set forth in Section 8.1; provided, however, that no payment shall be made with respect to the purchase price of the shares to be purchased. 
  
 13.3 Freestanding Stock Appreciate Rights. Freestanding SARs are exercisable in whole or in such installments and at
such times as may be determined by the Committee. Freestanding SARs shall have a term specified by the Committee, in no event to exceed ten years. The exercise price of a Freestanding SAR will also be determined by the Committee and may be less than
the Fair Market Value of the Common Stock, as determined by the Committee, on the date of the Freestanding SAR grant. The Committee also may determine the performance or other conditions, if any, that must be satisfied before all or part of a
Freestanding SAR may be exercised. 
  

 13 

 SECTION 14: EFFECT OF TERMINATION OF EMPLOYMENT 
  
 14.1 Death or Total Disability. Notwithstanding any contrary waiting
period or installment period in any Option Agreement or in the Plan, and unless the applicable Option Agreement provides otherwise, if a Holder’s employment terminates by reason of death or Total Disability, each outstanding Option granted
under the Plan will immediately become vested and exercisable in full. The Options may be exercised at any time during a period of one year following such termination by the Holder’s personal representative or the persons who have acquired such
options by bequest or inheritance (but not later than the scheduled expiration of such Option). 
  
 14.2 Other Terminations. If a Holder’s employment terminates prior to the complete exercise of an Option, then such Option will thereafter be
exercisable in accordance with the provisions of the applicable Option Agreement (including the provisions of any other agreement referred to in the Option Agreement); provided, however, that (a) no Option may be exercised after the
scheduled expiration date of such Option; (b) if the Holder’s employment terminates for reasons other than for Cause, death or Total Disability, Incentive Stock Options may be exercised for a period of no more than three months after the date
of such termination; and (c) if a Holder’s employment with the Company or any of its Subsidiaries is terminated for Cause by the Company or such Subsidiary prior to the exercise of any Option, then all Options held by such Holder and any
permitted transferee will immediately terminate. 
  
 14.3
Leaves. The Committee may determine whether any given leave of absence or change of employment constitutes a termination of employment. 
  
 14.4 Extension of Option Termination Date. The Committee, in its sole discretion, may extend the termination date of an Option granted under the
Plan without regard to the preceding provisions of this Section 14. In such event, the termination date shall be a date selected by the Committee in its sole discretion, but not later than the latest expiration date of the Option permitted pursuant
to Section 7.5. Such extension may be made in the Option Agreement as originally executed or by amendment to the Option Agreement, either prior to or following termination of a Holder’s employment. The Committee shall have no power to extend
the termination date of an Incentive Stock Option beyond the periods provided in Section 14.2 prior to the termination of the Holder’s employment or without the approval of the Holder, which may be granted or withheld in the Holder’s sole
discretion. 
  
 14.5 Effect upon Restricted Stock. In the
event that a Grantee terminates employment with the Company for any reason other than the death or Total Disability of the Grantee, any Restricted Stock held by such Grantee as of the date of such termination 
  

 14 

 of employment will be forfeited to the Company as set forth in Section 11.4. If the Grantee’s employment terminates
by reason of death or Total Disability, the Restriction Period with respect to Restricted Stock will be deemed to have lapsed as of the termination date and the Grantee or the Grantee’s heirs will be entitled to obtain share certificates free
of the restrictive legend as provided in Section 12.3. 
  
 14.6
Termination of Directors and Consultants. For purposes of this Section 14, a termination of employment shall be deemed to include the termination of a Director’s service as a member of the Board of Directors (unless the Director is also
an employee) and the termination of a consulting arrangement in the case of consultants. 
  
 SECTION 15: ISSUANCE OF SHARES 
  
 As soon as practicable after (i) an Holder has given the Company written notice of exercise of an Option and has otherwise met the requirements of Section 8, or (ii) a Grantee has satisfied any applicable restrictions, terms and conditions
set forth in this Plan or in the Restricted Stock Agreement with respect to a Restricted Stock Award as set forth in Section 10.4, the Company will establish an account with a brokerage firm reflecting the number of shares of Common Stock as to
which the Option has been exercised or the Restricted Stock Award has been satisfied. With the Holder or Grantee’s written election, the Company will cause a certificate or certificates registered in the Holder’s or Grantee’s name to
be delivered to the Grantee or Holder for a reasonable fee as determined under the terms of the Company’s administrative contract with the brokerage firm. The Company is not required to issue fractional shares, and in lieu thereof, the Company
may pay an amount in cash equal to the fair market value (as determined in accordance with Section 7.4) of such fractional shares on the date of exercise. If the issuance or transfer of shares by the Company would for any reason, in the opinion of
counsel for the Company, violate any applicable federal or state laws or regulations, the Company may delay issuance or transfer of such shares until compliance with such laws can reasonably be obtained. The Company is not obligated to effect or
obtain any listing, registration, qualification, consent or approval under any applicable federal or state laws or regulations or any contract or agreement to which the Company is a party with respect to the issuance of any such shares. 

 

 15 

 SECTION 16: TERM AND AMENDMENTS 
  
 16.1 Term. Unless the Plan has previously been terminated as hereinafter provided, no awards of Options or SARs and
no Stock Awards may be made under the Plan on or after the fifth anniversary of the Effective Date. The Board may at any time prior to the fifth anniversary of the Effective Date terminate the Plan, and the Board may at any time modify or amend the
Plan in such respects as it shall deem advisable. The Company will at all times maintain a current copy of the Plan on its intranet site, which will be updated to include amendments and will upon request of a Holder provide a hard copy of the most
current version. No further notice of Plan modifications is required. 
  
 16.2 Modification. Unless the shareholders of the Company have given their approval, the total number of shares which may be issued under the Plan may not be increased, except as provided in Section 5.3, and no amendment may be made
which reduces the price at which the Common Stock may be offered upon the exercise of Options under the Plan below the minimum required by Section 7.3, except as provided in Section 5.3, or which materially modifies the requirements as to
eligibility for participation in the Plan. No termination, modification or amendment of the Plan may, without the consent of the person to whom any award has been granted (or a permitted transferee of such person if the award, or any part thereof,
has been transferred as permitted by the Plan), adversely affect the rights of such person with respect to such award. No modification, extension, renewal or other change in any award granted under the Plan may be made after the grant of such award,
unless the same is consistent with the provisions of the Plan. With the consent of the Holder or the Grantee (or a permitted transferee of such Holder or Grantee if the award, or any part thereof, has been transferred as permitted by the Plan) and
subject to the terms and conditions of the Plan, the Board may amend outstanding agreements with any Holder or Grantee (or any such transferee), including, without limitation, any amendment which would (a) accelerate the time or times at which the
award may be exercised and/or (b) extend the scheduled expiration date of the award. Without limiting the generality of the foregoing, the Board may, but solely with the Holder’s consent, agree to cancel any Option or SAR under the Plan held by
such Holder and issue a new award in substitution therefor; provided that the award so substituted must satisfy all of the requirements of the Plan as of the date such new award is made. 
  
 SECTION 17: NO SPECIAL EMPLOYMENT RIGHTS 
  
 Nothing contained in this Plan or in any Option or Stock Award granted under
the Plan confers upon any Holder or Grantee any right with respect to the continuation of such person’s employment by the Company or any Subsidiary or interferes in any way with the right of the Company or any Subsidiary, subject to the terms
of any separate employment agreement to the contrary, at any time to terminate such employment or to increase or decrease the compensation of such person from the rate in existence at the time of the grant of the Option or Stock Award. 

 

 16 

 SECTION 18: GOVERNING LAW 
  
 This Plan, and all Options and Stock Awards granted under this Plan, will be construed and will take effect in accordance
with the laws of the State of Colorado, without regard to the conflicts of laws rules of such State. 
  
 SECTION 19: MISCELLANEOUS 
  
 19.1 Government and Other Regulations. The obligation of the Company with respect to Awards shall be subject to all applicable laws, rules and regulations and such approvals by any governmental agencies as may
be required, including, without limitation, the effectiveness of any registration statement required under the Securities Act of 1933, and the rules and regulations of any applicable securities exchange. 
  
 19.2 Withholding. The Company’s obligation to deliver shares of
Class A Common Stock in respect of any Award under the Plan shall be subject to applicable Federal, state and local tax withholding requirements. Federal, state and local withholding taxes paid upon the exercise of any Option may be paid in shares
of Class A Common Stock upon such terms and conditions as the Board shall determine; provided, however, that the Board in its sole discretion may disapprove such payment and require that such taxes be paid in cash. 
  
 19.3 Separability. If any of the terms or provisions of this Plan
conflict with the requirements of applicable law or applicable rules and regulations thereunder, including the applicable requirements, if any, of Section 162(m) of the Code or Rule 16b-3 under the Exchange Act, then such terms or provisions shall
be deemed inoperative to the extent necessary to avoid the conflict with applicable law, or applicable rules and regulations, without invalidating the remaining provisions hereof. 
  
 19.4 Non-Exclusivity of the Plan. Neither the adoption of the Plan by the Board nor the submission of the Plan to the
Board of Directors of the Company for approval shall be construed as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of stock options
and the awarding of stock and cash otherwise than under the Plan, and such arrangements may be either generally applicable or applicable only in specific cases. 
  

 17 

 19.5 Exclusion from Pension and Profit-Sharing Computation. By acceptance of an Award, each Holder
shall be deemed to have agreed that such Award is special incentive compensation that will not be taken into account, in any manner, as salary, compensation or bonus in determining the amount of any payment under any pension, retirement or other
employee benefit plan of the Company or any of its Subsidiaries, except as may be required under the terms of such plan. In addition, each beneficiary of a deceased Holder shall be deemed to have agreed that such Award will not affect the amount of
any life insurance coverage, if any, provided by the Company or any of its Subsidiaries on the life of the Holder which is payable to such beneficiary under any life insurance plan covering employees of the Company or any of its Subsidiaries.

  
 19.6 Beneficiaries. Each Holder or grantee may
designate any person(s) or legal entity(ies), including his or her estate, as his or her beneficiary under the Plan. Such designation shall be made in writing on a form filed with the Secretary of the Company or his or her designee and may be
revoked or changed by such Holder or grantee at any time by filing written notice of such revocation or change with the Secretary of the Company or his or her designee. If no person is designated by a Holder or grantee as his or her beneficiary or
if no person designated as a beneficiary survives such Company, the Holder’s beneficiary will be his or her estate. 
  
 IN WITNESS WHEREOF, the duly authorized representative of the Company has executed this Plan. 
  

			
	 TIME WARNER TELECOM INC.

	 Plan Sponsor

		
	 By:
	 	  
 /s/ Julie
Rich

		
	 Title:
	 	 Senior Vice President -
Human Resources and Administration
  

		
	 Date:
	 	 September 10, 2003
  

  

 18

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