Document:

Unassociated Document

    Exhibit
      10.1

     

    RESTRICTED
      STOCK UNIT AGREEMENT

    PURSUANT
      TO THE

    NYSE
      GROUP, INC. 2006 STOCK INCENTIVE PLAN

    

    THIS
      AGREEMENT
      (the
“Agreement”) is entered into as of the 1st day of June, 2006, by and between the
      NYSE Group, Inc. (the “Company”) and
      ________________________________________________ (the “Participant”).
      Capitalized terms used but not defined in this Agreement shall have the meanings
      assigned to them in the Plan.

     

    W I T N E S S E T H:

     

    WHEREAS,
      the
      Company has adopted the NYSE Group, Inc. 2006 Stock Incentive Plan (the “Plan”),
      which is currently administered by the Company’s Board of Directors (the
“Board”); and

     

    WHEREAS,
      pursuant
      to Section 10.1 of the Plan, the Board may grant Restricted Stock Units to
      Non-Employee Directors under the Plan.

     

    NOW,
      THEREFORE,
      for and
      in consideration of the mutual promises herein contained, and for other good
      and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties agree as follows:

     

    1. 
        Grant
      of Restricted Stock Units.
      Subject
      to the restrictions and other conditions set forth herein, the Board has
      authorized this grant of __________ Restricted Stock Units (“RSUs”) to the
      Participant as of June 1, 2006 (the “Grant Date”).

     

    2. 
        Vesting.
      The
      RSUs shall be 100% fully vested on the date of grant; provided, however, that,
      RSUs shall not be distributed to the Participant other than in accordance with
      Section 3 below.

     

    3.
         Termination.
      Upon a
      Participant’s Termination, other than a Termination for Cause, all of the RSUs
      granted to a Participant hereunder shall be distributed to the Participant
      in
      shares of Common Stock as soon as practicable following such Termination.
      Notwithstanding any contrary provision contained herein, in the event of a
      Participant’s Termination for Cause, all RSUs shall immediately be
      forfeited.

     

    4.
         Rights
      as a Stockholder.
      The
      Participant shall have no rights as a stockholder with respect to any shares
      of
      Common Stock covered by any RSUs unless and until the Participant has become
      the
      holder of record of the shares, and, except as otherwise specifically provided
      for in the Plan and in Section 5 below, no adjustments shall be made for
      dividends in cash or other property, distributions or other rights in respect
      of
      any such shares.

     

    5. 
        Dividends.
      Cash or
      stock dividends (whether regular or extraordinary) declared and paid with
      respect to shares of Common Stock underlying the RSUs granted herein shall
      be
      treated as follows: (a) stock dividends shall be credited to a dividend book
      entry account and distributed to the Participant upon Termination, as provided
      in Section 3 above and (b) cash dividends shall be distributed to the

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Participant
      as soon as practicable after the date such dividends are declared and
      paid.

     

    6.
         Provisions
      of Plan Control.
      This
      Agreement is subject to all the terms, conditions and provisions of the Plan,
      including, without limitation, the amendment provisions thereof, and to such
      rules, regulations and interpretations relating to the Plan as may be adopted
      by
      the Board (or a duly authorized committee thereof) and as may be in
      effect from time to time. The Plan is incorporated herein by reference.
      Capitalized terms in this Agreement that are not otherwise defined shall have
      the same meaning as set forth in the Plan. If and to the extent that this
      Agreement conflicts or is inconsistent with the terms, conditions and provisions
      of the Plan, the Plan shall control, and this Agreement shall be deemed to
      be
      modified accordingly. This Agreement contains the entire understanding of the
      parties with respect to the subject matter hereof and supersedes any prior
      agreements between the Company and the Participant with respect to the subject
      matter hereof. 

     

    7. 
        Amendment.
      To
      the
      extent applicable, the Board (or a duly authorized committee
      thereof) may at any time and from time to time amend, in whole or in part,
      any or all of the provisions of this Agreement to comply with Section 409A
      of
      the Code and the regulations thereunder, including but not limited to, imposing
      a six month delay upon the distribution of RSUs to a Participant if, at the
      time
      of Termination, such Participant is a “specified employee” within the meaning of
      Section 409A of the Code, or any other applicable law and may also amend,
      suspend or terminate this Agreement subject to the terms of the Plan.

     

    8.
         Notices.
      Any
      notice or communication given hereunder shall be in writing and shall be deemed
      to have been duly given when delivered in person, or by United States mail,
      to
      the appropriate party at the address set forth below (or such other address
      as
      the party shall from time to time specify): 

     

    If
      to the
      Company, to:

     

    NYSE
      Group, Inc.

    11
      Wall
      Street

    New
      York,
      New York 10005

    Attention:
      Corporate
      Secretary

     

    If
      to the
      Participant, to the address on file with the Company.

     

    9.
         No
      Obligation to Continue Employment or Directorship.
      This
      Agreement is not an agreement of employment or directorship. This Agreement
      does
      not guarantee that the Company or its Affiliates will employ or retain, or
      to
      continue to, employ or retain the Participant during the entire, or any portion
      of the, term of this Agreement, including but not limited to any period during
      which any RSUs are outstanding.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed this Agreement as of the day and year first set
      forth above.

    

    

    
      	 	NYSE GROUP,
              INC.	 
	 	 	 	 	 	 
	 	By:	 	 
	 	 	 	 	 	 
	 	Name:	 	 
	 	 	 	 	 	 
	 	Title:	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	PARTICIPANT	 
	 	 	 	 	 	 
	 	 	 
	 	[Name]	 

    

     

     

     

    3Exhibit 10.1: Option Agreement

Exhibit 10.1 

OPTION AGREEMENT 

[Full Name of Employee] 

[Address] 

[Date] 

Dear [First Name]: 

        Pursuant
to the Company’s 2006 Employee Stock Plan (the “Plan”), on ________,
____ (the “Effective Date”) you were selected by the Compensation
Committee of the Board of Directors (as more fully described in Paragraph 14, the
“Committee”) of Cablevision Systems Corporation (the
“Company”) to receive nonqualified stock options (the
“Options”) to purchase ____ (___) shares of NY Group Class A Common Stock
of the Company (the “Class A Common Stock”) at a price of $____ per
share. 

        Capitalized
terms used but not defined in this agreement (this “Agreement”) have the
meanings given to them in the Plan. The Options are granted subject to the terms and
conditions set forth below: 

        
1.    Vesting. If you remain in the continuous employ of the Company or any
Affiliate, the Options will become exercisable in accordance with the following
schedule: 

        
2.     Exercise. You may exercise the Options that become vested and exercisable
by giving written notice to the Secretary of the Company specifying the number
of shares of Class A Common Stock as to which the Options are being exercised
(the “Exercise Notice”), together with a copy of this
Agreement. Unless the Company chooses to settle such exercise in cash, shares of
Class A Common Stock, or a combination thereof pursuant to Paragraph 3, you will
be required to deliver to the Company within five (5) days of your delivery of
the Exercise Notice, payment in full of the exercise price due on account of
such exercise. You may pay the exercise price by cash, by certified check, by
surrendering shares of Class A Common Stock or by any combination thereof. Class
A Common Stock used to pay the exercise price pursuant to this Paragraph 2 will
be valued at the Fair Market Value as of the day preceding the date of exercise. 

        
3.    Option Spread. Upon receipt of the Exercise Notice, the Company may
elect, in lieu of issuing shares of Class A Common Stock, to settle the exercise
covered by such notice by paying you an amount equal to the product obtained by
multiplying (i) the excess of the Fair Market Value of one (1) share of Class A
Common Stock on the date of exercise over the per share exercise price of the
Options (the “Option Spread”) by (ii) the number of shares of
Class A Common Stock specified in the Exercise Notice. The amount payable to you
in these circumstances may be paid by the Company either in cash or in shares of
Class A Common Stock having a Fair Market Value equal to the Option Spread, or a
combination thereof, as the Company shall determine. Class A Common Stock used
to pay the Option Spread pursuant to this Paragraph 3 will be valued at the Fair
Market Value as of the day the Exercise Notice is received by the Company. 

        
4.    Expiration. The Options will terminate automatically and without further
notice on the tenth (10th) anniversary of the Effective Date, or at
any of the following dates, if earlier: 

               	(A) 	  	
                    with respect to those Options which are then unexercisable, the date upon which
                    you cease to be an employee of the Company or an Affiliate unless as a result of
                    your death in which case all of your Options granted under this Agreement shall
                    become immediately exercisable; 

                    

               	(B) 	  	
                    with respect to those Options which are then exercisable: 

                    

     	 	
          (i) one hundred and eighty (180) days following the date upon which you cease to be
          an employee of the Company or an Affiliate, unless you cease to be an employee
          by reason of (x) you terminating your employment for any reason, (y) death,
          Disability (as defined below) or retirement with the Company’s consent or
          (z) your employment having been terminated for Cause (as defined below); 

          

     	 	(ii)
           ninety (90) days following the date upon which you terminate your employment
          for any reason; and 

          

     	 	(iii)
           three (3) years following the date upon which you cease to be an employee of
          the Company or an Affiliate, if such cessation is the result of death,
          Disability or Retirement; or 

          

               	(C) 	  	
                    with respect to all your then outstanding Options, whether exercisable or
                    unexercisable, the date upon which your employment is terminated for Cause. 

                    

        For
purposes of this Agreement, “Cause” means, as determined by the
Committee, your (i) commission of an act of fraud, embezzlement, misappropriation, willful
misconduct, gross negligence or breach of fiduciary duty against the Company or an
affiliate thereof, or (ii) commission of any act or omission that results in a conviction,
plea of no contest, plea of nolo contendere, or imposition of unadjudicated
probation for any crime involving moral turpitude or any felony. 

        For
purposes of this Agreement, “Disability” means your inability to perform
for six (6) continuous months substantially all the essential duties of your occupation,
as determined by the Committee. 

        For
purposes of this Agreement, “Retirement” means the voluntary termination
by you of your employment with the Company and its Affiliates at such time as (i) you have
attained at least the age of fifty-five (55) and (ii) you have been employed by the
Company or its Affiliates for at least five (5) years, provided that the Company
may nevertheless decide, in its sole discretion, not to treat your termination of
employment as a “Retirement” hereunder. Treatment of your termination of
employment as a “Retirement” hereunder shall be further subject to your
execution (and the effectiveness) of a retirement agreement to the Company’s
satisfaction, including, without limitation (to the extent desired by the Company),
non-compete, non-disparagement, non-solicitation, confidentiality and further cooperation

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obligations/restrictions on you as well as a general release by you of the Company and its
Affiliates. The above definition of “Retirement” is solely for purposes of this
Agreement and shall not, in any way, create or imply any obligations of the Company or any
of its Affiliates (under any other agreement or otherwise) with respect to any such
termination of your employment. 

        Notwithstanding
the first sentence of this Paragraph 4, in the event of your death during the period that
your Options are exercisable, whether death occurs before or after you cease employment,
the Options that are exercisable at the time of your death shall remain exercisable by
your estate or beneficiary until the earlier of the third (3rd) anniversary of
your death and the eleventh (11th) anniversary of the Effective Date. 

        
5.    
          Change of Control/Going Private Transaction. As set forth in Appendix
          1 attached hereto, the Options may be affected in the event of a Change of
          Control or a going private transaction (each as defined in Appendix 1
          attached hereto) of the Company. 

        
6.    
          Tax Representations and Tax Withholding. You hereby acknowledge that you
          have reviewed with your own tax advisors the federal, state and local tax
          consequences of exercising the Options and receiving shares of Class A Common
          Stock and cash. You hereby represent to the Company that you are relying solely
          on such advisors and not on any statements or representations of the Company,
          its Affiliates or any of their respective agents. 

        If,
in connection with the exercise of the Options, the Company is required to withhold any
amounts by reason of any federal, state or local tax, such withholding shall be effected
in accordance with Section 16 of the Plan. 

        
7.    
          Transfer Restrictions. You may not transfer, assign, pledge or otherwise
          encumber the Options, other than to the extent provided in the Plan. 

        
8.    
          Non-Qualification as ISO. The Options are not intended to qualify as
          “incentive stock options” within the meaning of Section 422A of the
          Internal Revenue Code of 1986, as amended. 

        
9.    
          Relationship with Competitive Entities. In the event that (a) you shall
          voluntarily terminate your employment or your employment is terminated for Cause
          and (b) you shall become employed by, consult to, or have any interest, directly
          or indirectly, in any Competitive Entity (as defined below) within one (1) year
          of exercising any Options hereunder, then you shall within ten (10) business
          days thereof pay the Company, as liquidated damages and not as a penalty, an
          amount equal to the sum of (a) the product of the Option Spread multiplied by
          the number of shares of Class A Common Stock with respect to which the Options
          were exercised during such one-year period, plus (b) interest at a rate equal to
          the lesser of (i) twelve percent (12%) per annum or (ii) the maximum interest
          rate permitted by applicable law, compounded quarterly, calculated from the date
          you exercised the Options until the date such payment to the Company is made. A
          “Competitive Entity” shall mean (1) any company that competes with any
          of the Company’s cable television, telephone or on-line data businesses in
          the New York City Metropolitan Area (as defined in Appendix 1 attached
          hereto) or that competes with any of the Company’s programming, cinema,
          sports or entertainment businesses, nationally or regionally, as applicable; or
          (2) any trade or professional association representing any of the companies
          covered by this Paragraph 9, other than the National Cable Television

-3- 

          Association and any state cable television association. Ownership of not more
          than one percent (1%) of the outstanding stock of any publicly-traded company
          shall not be a violation of this Paragraph 9. 

        By
accepting this Agreement, you understand that the terms and conditions of this Paragraph 9
may limit your ability to earn a livelihood in a business similar to the business of the
Company, but nevertheless hereby agree that the restrictions and limitations hereof are
reasonable in scope, area and duration, and that the consideration provided under the Plan
and this Agreement is sufficient to justify the restrictions and limitations contained in
this Paragraph 9. Accordingly, in consideration thereof and in light of your education,
skills and abilities, by participating in the Plan, you hereby agree that you will not
assert, and it should not be considered, that such provisions are either unreasonable in
scope, area or duration, or will prevent you from earning a living, or otherwise are void,
voidable or unenforceable or should be voided or held unenforceable. You further
understand and hereby agree that the restrictions and limitations contained in this
Paragraph 9 are ancillary to, and part of, the Plan and this Agreement, and are reasonably
necessary to protect the good will and business interests of the Company. 

        
10.    
          Securities Law Acknowledgments. You hereby acknowledge and confirm to the
          Company that (i) you are aware that the shares of Class A Common Stock are
          publicly-traded securities and (ii) the shares of Class A Common Stock issuable
          upon exercise of the Options may not be sold or otherwise transferred unless
          such sale or transfer is registered under the Securities Act of 1933, as
          amended, and the securities laws of any applicable state or other jurisdiction,
          or is exempt from such registration. 

        
11.    
          Governing Law. This Agreement shall be deemed to be made under, and in
          all respects shall be interpreted, construed and governed by and in accordance
          with, the laws of the State of New York. 

        
12.    
          Jurisdiction and Venue. You hereby irrevocably submit to the jurisdiction
          of the courts of the State of New York and the Federal courts of the United
          States of America located in the Southern District and Eastern District of the
          State of New York in respect of the interpretation and enforcement of the
          provisions of this Agreement, and hereby waive, and agree not to assert, as a
          defense that you are not subject thereto or that the venue thereof may not be
          appropriate. You hereby agree that mailing of process or other papers in
          connection with any such action or proceeding in any manner as may be permitted
          by law shall be valid and sufficient service thereof. 

        
13.    
          Right of Offset. You hereby agree that the Company shall have the right
          to offset against its obligation to deliver shares of Class A Common Stock, cash
          or other property under this Agreement, any outstanding amounts of whatever
          nature that you then owe to the Company or any of its Affiliates. 

        
14.    
          The Committee. For purposes of this Agreement, the term
          “Committee” means the Compensation Committee of the Board of Directors
          of the Company or any replacement committee established under, and as more fully
          defined in, the Plan. 

        
15.    
          Committee Discretion. The Committee has full discretion with respect to
          any actions to be taken or determinations to be made in connection with this
          Agreement, and its determinations shall be final, binding and conclusive. 

-4- 

        
16.    
          Amendment. The Committee reserves the right at any time to amend the
          terms and conditions set forth in this Agreement, except that the Committee
          shall not make any amendment or revision in a manner unfavorable to you (other
          than if immaterial), without your consent. No consent shall be required for
          amendments made pursuant to Section 12 of the Plan, except that, for purposes of
          Section 19 of the Plan, Section 5 and Appendix 1 of this Agreement are deemed to
          be “terms of an Award Agreement expressly refer[ring] to an Adjustment
          Event.” Any amendment of this Agreement shall be in writing and signed by
          an authorized member of the Committee or a person or persons designated by the
          Committee. 

        
17.    
          Options Subject to the Plan. The Options granted by this Agreement are
          subject to the Plan. 

        
18.    
          Entire Agreement. Except for any employment agreement between you and the
          Company or any of its Affiliates in effect as of the date of the grant hereof
          (as such employment agreement may be modified, renewed or replaced, provided
          that such modification, renewal or replacement shall not extend the time any
          Options may be exercised beyond the time provided herein or in such original
          employment agreement), this Agreement and the Plan constitute the entire
          understanding and agreement of you and the Company with respect to the Options
          covered hereby and supersede all prior understandings and agreements. In the
          event of a conflict among the documents with respect to the terms and conditions
          of the Options covered hereby, the documents will be accorded the following
          order of authority: the terms and conditions of the Plan will have highest
          authority followed by the terms and conditions of your employment agreement, if
          any, followed by the terms and conditions of this Agreement. 

        
19.    
          Successors and Assigns. The terms and conditions of this Agreement shall
          be binding upon, and shall inure to the benefit of, the Company and its
          successors and assigns. 

        
20.    
          Waiver. No waiver by the Company at any time of any breach by you of, or
          compliance with, any term or condition of this Agreement or the Plan to be
          performed by you shall be deemed a waiver of the same, any similar or any
          dissimilar term or condition at the same or at any prior or subsequent time. 

        
21.    
          Severability. The terms or conditions of this Agreement shall be deemed
          severable and the invalidity or unenforceability of any term or condition hereof
          shall not affect the validity or enforceability of the other terms and
          conditions set forth herein. 

        
22.    
          Exclusion from Compensation Calculation. By acceptance of this Agreement,
          you shall be considered in agreement that all shares of Class A Common Stock and
          cash received upon each exercise of the Options shall be considered special
          incentive compensation and will be exempt from inclusion as “wages” or
          “salary” in pension, retirement, life insurance and other employee
          benefits arrangements of the Company and its Affiliates, except as determined
          otherwise by the Company. In addition, each of your beneficiaries shall be
          deemed to be in agreement that all such shares of Class A Common Stock and cash
          be exempt from inclusion in “wages” or “salary” for purposes
          of calculating benefits of any life insurance coverage sponsored by the Company
          or any of its Affiliates. 

        
23.    
          No Right to Continued Employment. Nothing contained in this Agreement or
          the Plan shall be construed to confer on you any right to continue in the employ
          of the Com-

-5- 

pany or any Affiliate, or derogate from the right of the Company or any
Affiliate, as applicable, to retire, request the resignation of, or discharge
you, at any time, with or without cause. 

        
24.    
          Headings. The headings in this Agreement are for purposes of convenience
          only and are not intended to define or limit the construction of the terms and
          conditions of this Agreement. 

        
25.    
          Effective Date. Upon execution by you, this Agreement shall be effective
          from and as of the Effective Date. 

        
26.    
          Signatures. Execution of this Agreement by the Company may be in the form
          of an electronic or similar signature and such signature shall be treated as an
          original signature for all purposes. 

	  	CABLEVISION SYSTEMS CORPORATION  

	   	By:  	  
	   	   	
 
	   	   	

Name:

Title: 
	

 

        By
your signature, you (i) acknowledge that a complete copy of the Plan and an executed
original of this Agreement have been made available to you and (ii) agree to all of the
terms and conditions set forth in the Plan and this Agreement. 

______________________________ 

Optionee: ______________________ 

-6- 

APPENDIX 1 

TO 

STOCK OPTION AWARD
AGREEMENT  

        In
the event of a “Change of Control” of the Company or a “going private
transaction,” as defined below, your entitlement to exercise the Options shall be as
follows: 

        
1.    
          If the Company or the “surviving entity”, as defined below, has shares
          of common stock (or partnership units) traded on a national stock exchange or on
          the over-the-counter market as reported on NASDAQ, the Committee shall, to the
          extent that the Options have not been exercised and have not expired (the
          “Outstanding Options”), no later than the effective date of the
          transaction which results in a Change of Control or going private transaction
          either (A) convert your rights in the Outstanding Options into a right to
          receive an amount of cash equal to (i) the number of common shares subject or
          relating to the Outstanding Options multiplied by (ii) the excess of (x) the
          “offer price per share,” the “acquisition price per share”
          or the “merger price per share,” each as defined below, whichever of
          such amounts is applicable, over (y) the exercise price of the shares subject or
          relating to the Outstanding Options, or (B) arrange to have the surviving entity
          grant to you in substitution for your Outstanding Options an award of options
          for shares of common stock (or partnership units) of the surviving entity on the
          same terms with a value equivalent to the Outstanding Options and which will, in
          the good faith determination of the Committee, provide you with an equivalent
          profit potential. 

        
2.    
          If the Company or the surviving entity does not have shares of common stock (or
          partnership units) traded on a national stock exchange or on the
          over-the-counter market as reported on NASDAQ, the Committee shall convert your
          rights in the Outstanding Options into a right to receive an amount of cash
          equal to the amount calculated as per Section 1(A) above. 

        
3.    
          The cash award provided in Section 1 or 2 shall become payable to you, and the
          substitute options of the surviving entity provided in Section 1 will become
          exercisable (1) with respect to the Outstanding Options that were not
          exercisable on the effective date of the Change of Control or going private
          transaction, as the case may be, at the earlier of (a) the date on which the
          Outstanding Options would otherwise have become exercisable hereunder had they
          continued in effect, or (b) the date on which your employment with the Company
          or the surviving entity is terminated (i) by the Company or the surviving entity
          other than for Cause, if such termination occurs within three (3) years of the
          Change of Control or going private transaction, (ii) by you for “good
          reason,” as defined below, if such termination occurs within three (3)
          years of the Change of Control or going private transaction or (iii) by you for
          any reason at least six (6) months, but not more than nine (9) months after the
          effective date of the Change of Control or going private transaction, or (2)
          with respect to the Outstanding Options that were exercisable on the effective
          date of the Change of Control or going private transaction, as the case may be,
          the substitute options shall become exercisable immediately and the cash awards
          shall become payable promptly. The amount payable in cash shall be payable
          together with interest from the effective date of the Change of Control or going
          private transaction until the date of payment at (a) the weighted average cost
          of capital of the Company immediately prior to the effectiveness of the Change
          of Control or going private transaction, or (b) if the Company (or the surviving en-

-7- 

          tity) sets aside the funds in a trust or other funding arrangement, the actual
          earnings of such trust or other funding arrangement. 

        
4.    
          As used herein, 

        “Change
of Control” means the acquisition, in a transaction or a series of related
transactions, by any person or group, other than Charles F. Dolan or members of the
immediate family of Charles F. Dolan or trusts for the benefit of Charles F. Dolan or his
immediate family (or an entity or entities controlled by any of them) or any employee
benefit plan sponsored or maintained by the Company, of (1) the power to direct the
management of substantially all the cable television systems then owned by the Company in
the New York City Metropolitan Area (as hereinafter defined) or (2) after any fiscal year
of the Company in which all the systems referred to in clause (1) above shall have
contributed in the aggregate less than a majority of the net revenues of the Company and
its consolidated subsidiaries, the power to direct the management of the Company or
substantially all its assets. For purposes of this definition, net revenues shall be
determined by the independent accountants of the Company in accordance with generally
accepted accounting principles consistently applied and certified by such accountants.
“New York City Metropolitan Area” means all locations within the following
counties: (i) New York, Richmond, Kings, Queens, Bronx, Nassau, Suffolk, Westchester,
Rockland, Orange, Putnam, Sullivan, Dutchess, and Ulster in New York State; (ii) Hudson,
Bergen, Passaic, Sussex, Warren, Hunterdon, Somerset, Union, Morris, Middlesex, Mercer,
Monmouth, Essex and Ocean in New Jersey; (iii) Pike in Pennsylvania; and (iv) Fairfield
and New Haven in Connecticut. 

        “Surviving
entity” means the entity that owns, directly or indirectly, after consummation of any
transaction, substantially all the cable television systems owned directly or indirectly
by the Company in the New York City Metropolitan Area prior to consummation of such
transaction. If any such entity is at least majority-owned, directly or indirectly, by any
entity (a “parent entity”) which has shares of common stock (or
partnership units) traded on a national stock exchange or the over-the-counter market, as
reported on NASDAQ, then such parent entity shall be deemed to be the surviving entity
provided that if there shall be more than one such parent entity, the parent entity
closest to ownership of the Company’s cable television systems shall be deemed to be
the surviving entity. If in connection with any transaction, a Change of Control or going
private transaction occurs and no entity shall own, after consummation of such
transaction, substantially all the cable television systems owned by the Company in the
New York City Metropolitan Area prior to consummation of such transaction, then,
notwithstanding any other provision of this Section 4 to the contrary, there shall not be
deemed to be a surviving entity so that the provisions of Section 1(B) shall not be
applicable. Ownership of “substantially all” the Company’s New York City
Metropolitan Area cable television systems shall mean ownership, after consummation of
such transaction (or series of related transactions), of an aggregate of at least eighty
percent (80%) of the basic subscribers of all the cable television systems owned by the
Company and its consolidated subsidiaries in the New York City Metropolitan Area prior to
such transaction (or series of related transactions). 

        “Going
private transaction” means a transaction involving the purchase of Company securities
described in Rule 13e-3 to the Securities and Exchange Act of 1934. 

-8- 

        “Good
reason” means 

        (i)    
          without your express written consent any reduction in your base salary or bonus
          potential, or any material impairment or material adverse change in your working
          conditions (as the same may from time to time have been improved or, with your
          written consent, otherwise altered, in each case, after the Effective Date) at
          any time after or within ninety (90) days prior to the Change of Control
          including, without limitation, any material reduction of your other
          compensation, executive perquisites or other employee benefits (measured, where
          applicable, by level or participation or percentage of award under any plans of
          the Company), or material impairment or material adverse change of your level of
          responsibility, authority, autonomy or title, or to your scope of duties; 

        (ii)    
          any failure by the Company to comply with any of the provisions of this
          Agreement, other than an insubstantial or inadvertent failure remedied by the
          Company promptly after receipt of notice thereof given by you; 

        (iii)    
          the Company’s requiring you to be based at any office or location more than
          thirty-five (35) miles from your location immediately prior to such event except
          for travel reasonably required in the performance of your responsibilities; or 

        (iv)    
          any failure by the Company to obtain the assumption and agreement to perform
          this Agreement by a successor as contemplated by Section 1. 

        “Offer
price per share” shall mean, in the case of a tender offer or exchange offer which
results in a Change of Control or going private transaction (an “Offer”),
the greater of (i) the highest price per share of common stock paid pursuant to the Offer,
or (ii) the highest fair market value per share of common stock during the ninety-day
period ending on the date of a Change of Control or going private transaction. Any
securities or property which are part or all of the consideration paid for shares of
common stock in the Offer shall be valued in determining the Offer Price per share at the
higher of (A) the valuation placed on such securities or property by the Company, person
or other entity making such offer or (B) the valuation placed on such securities or
property by the Committee. 

        “Merger
price per share” shall mean, in the case of a merger, consolidation, sale, exchange
or other disposition of assets that results in a Change of Control or going private
transaction (a “Merger”), the greater of (i) the fixed or formula price
for the acquisition of shares of common stock occurring pursuant to the Merger, and (ii)
the highest fair market value per share of common stock during the ninety-day period
ending on the date of such Change of Control or going private transaction. Any securities
or property which are part or all of the consideration paid for shares of common stock
pursuant to the Merger shall be valued in determining the merger price per share at the
higher of (A) the valuation placed on such securities or property by the Company, person
or other entity which is a party with the Company to the Merger, or (B) the valuation
placed on such securities or property by the Committee. 

        “Acquisition
price per share” shall mean the greater of (i) the highest price per share stated on
the Schedule 13D or any amendment thereto filed by the holder of twenty percent (20%) or
more of the Company’s voting power which gives rise to the Change of Control or going
private transaction, and (ii) the highest fair market value per share of common stock
during the ninety-day period ending on the date of such Change of Control or going private
transaction. 

-9-

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