Document:

EX-10.6: EMPLOYMENT AGREEMENT

 

Exhibit 10.6

Conformed Copy

EMPLOYMENT AGREEMENT

         This Employment Agreement is made as of the 30th day of October 2001, by
and between David L. McCall, an individual residing in the State of South
Carolina (the “Executive”), and Charter Communications, Inc., a Delaware
corporation (“Charter”), with reference to the following facts:

         Charter wishes to retain Executive to serve as Senior Vice President of
Operations  — Eastern Division of Charter from the date hereof and on the terms
and conditions set forth herein;

         Executive desires to serve as Senior Vice President of Operations -
Eastern Division of Charter from the date hereof and on the terms and
conditions set forth herein;

         NOW, THEREFORE, in consideration of the mutual covenants hereinafter set
forth, the parties hereto hereby agree as follows:

1.     Interpretation.

         1.1     Defined Terms.

                  “Affiliate” shall mean with respect to any person or entity any other
person or entity who controls, is controlled by or is under common control with
such person or entity.

                  “Allen” shall mean Paul G. Allen.

                  “Board” shall mean the Board of Directors of Charter or a committee
thereof.

                  “Change of Control” means (a) a sale of more than 49.9% of the outstanding
capital stock of Charter in a single or related series of transactions, except
where Allen and his Affiliates retain effective voting control of Charter, the
merger or consolidation of Charter with or into any other corporation or
entity, other than a wholly-owned subsidiary of Charter, except where Allen and
his Affiliates have effective voting control of the surviving entity, or any
other transaction, or event, a result of which is that Allen holds less than
50.1% of the voting power of the surviving entity, except where Allen and his
Affiliates retain effective voting control of Charter, or a sale of all or
substantially all of the assets of Charter (other than to an entity
majority-owned or controlled by Allen and his Affiliates); where, in any such
case (b) Executive’s employment with Charter is terminated or his duties are
materially diminished (it being understood that neither Charter’s failure to be
a “public” company as such term is commonly understood nor his obligation, if
any, to report to a committee of the Board following any merger or similar
transaction constitute a material diminution in Executive’s duties under this
Agreement).

2.     Employment, Duties and Authority.

         Charter hereby agrees to employ the Executive, and the Executive agrees to
be employed, as Senior Vice President of Operations — Eastern Division of
Charter. As Senior Vice President of Operations — Eastern Division of Charter,
the Executive shall report directly to the Executive Vice President and Chief
Operating Officer of Charter, and, subject

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to the control and supervision of
such Executive Vice President and Chief Operating Officer of Charter, shall
have such duties and responsibilities as are typically performed by a
divisional head of operations and such other executive duties not inconsistent
with the foregoing as may be assigned to Executive from time to time. The
Executive shall devote substantially all of his business time, attention,
energies, best efforts and skills to the diligent performance of his duties
hereunder. Notwithstanding the foregoing, it is understood that the Executive
may expend a reasonable amount of time for personal. charitable, investment and
other activities so long as such activities shall not interfere in any material
respect with the performance by the Executive of his duties and
responsibilities hereunder.

3.     Term.

         The term of this Agreement shall commence on the date hereof and shall
terminate on December 31, 2005 (the “Term”).

4.     Compensation and Benefits.

         4.1     Cash Compensation.

         a.          Base Salary. During the Term of this Agreement, Charter shall pay the
Executive an annual base salary at the rate of $300,000 or such higher rate as
may from time to time be determined by the Board in its discretion, which shall
be payable consistent With Charter’s payroll practices.

         b.          Bonus. The Executive shall be eligible to receive an annual target
bonus equal to forty percent of Executive’s base salary, the amount of such
bonus to be determined and paid in accordance with Charter’s Executive Bonus
Policy, consistent with past practices. Executive shall also be eligible to be
considered for additional bonuses at the discretion of the Board. With respect
to the year ended December 31, 2001, Executive shall be paid a bonus of
$120,000 by January 15, 2002.

         4.2     Benefit Plans. The Executive shall be entitled to participate in any
disability insurance, pension, or other benefit plan of Charter now existing or
hereafter adopted for the benefit of employees or executives of Charter
generally. To the extent that Charter does not provide life insurance in an
amount at least equal to the unpaid amount of Executive’s base salary through
the end of the Term, Charter shall continue to pay to Executive’s estate an
amount equal to Executive’s base salary, in installments, through the end of
the Term.

         4.3     Vacation. Charter acknowledges that the Executive currently has five
weeks of accrued vacation (which Charter, at its sole discretion, may
compensate Executive for in lieu of having Executive utilize such vacation).
The Executive shall be entitled to compensated vacation in each fiscal year
consistent with Charter’s policy, to be taken at times which do not
unreasonably interfere with the performance of the Executive’s duties
hereunder. Unused vacation time shall be treated in accordance with Charter’s
policy.

         4.4     Expenses. The Executive shall be entitled to receive reimbursement
for all reasonable out-of pocket expenses incurred by the Executive in the
performance of his duties hereunder, provided that such expenses are incurred
and accounted for in accordance with the policies and procedures established by
Charter.

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5.     Restricted Stock.

         As a matter of separate inducement and agreement in connection with his
employment hereunder and not in lieu of any salary or other compensation,
Charter shall issue to the Executive 35,000 Shares of Class A Common Stock of
Charter (the “Shares”). The restrictions on the Shares shall lapse and the
grant shall otherwise have the terms and conditions set forth in the form of
Restricted Stock Agreement previously delivered to the Executive.

6.     Indemnification.

         Charter agrees to indemnity and hold harmless to the maximum extent
permitted by law the Executive from and against any claims, damages,
liabilities, losses, costs or expenses in connection with or arising out of the
performance by the Executive of his duties as an officer of Charter or any of
its subsidiaries or Affiliates.

7.     Termination. This Agreement may be terminated as follows:

         7.1     By the Executive for Good Reason. The Executive may terminate this
Agreement for Good Reason (as defined below) upon thirty (30) days’ advance
written notice to Charter. “Good Reason” shall exist if, without the
Executive’s consent: (A) there is an assignment to the Executive of any duties
materially inconsistent with, or which constitutes a material reduction of the
Executive’s position, duties, responsibilities, status or authority with
Charter (it being understood that Charter’s cessation as a “public” company
shall not be a material reduction in the Executive’s position, duties,
responsibilities, status or authority) and Charter shall not have rectified
same within the later of (a) thirty (30) days of written notice from the
Executive (b) or if Charter elects, within thirty (30) days after receipt of
such written notice, to require that any alleged claim of Good Reason be
submitted to binding arbitration, then ten days (10) days after any
determination adverse to Charter to rectify such event (any such arbitration
shall be held in St. Louis under the local arbitration rules of JAMS or other
entity mutually agreed to and such arbitration decision shall be made no later
than sixty (60) days after Charter’s election to require such arbitration); (B)
the Executive is required to report, directly or indirectly to persons other
than the Executive Vice President and Chief Operating Officer of Charter
(except that Executive may be required to report to a Board committee following
any merger or similar transaction); (C) removal of the Executive from the
position he holds pursuant hereto, except in connection with the termination of
the Executive for Cause (as defined below); (D) the Executive’s principal place
of business shall be outside the State of South Carolina; or (e) a Change of
Control.

         7.2     By Charter for Cause. Charter may terminate this Agreement for Cause
upon thirty (30) days’ advance written notice to the Executive. “Cause” shall
mean (i) conviction of a felony offense or of a misdemeanor that involves
dishonesty or moral
turpitude; (ii) the refusal to comply with the lawful directives of
Executive Vice President and Chief Operating Officer, the Chief Executive
Officer or the Board of Charter, within ten (10) days after written notice of
such directive from the Executive Vice President and Chief Operating Officer,
the Chief Executive Officer or the Board of Charter; (iii) conduct on the part
of the Executive in the course of his employment which constitutes gross
negligence or

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willful misconduct which conduct is not cured within ten (10)
days after written notice thereof from the Chief Executive Officer or the
Board; (iv) the Executive’s breach of his fiduciary duties to the Company; (v)
the Executive’s death or his Disability (as defined in Charter’s 2001 Stock
Incentive Plan); or (vi) the Executive’s possession or use of illegal drugs or
excessive use of alcohol on Company premises on work time or at a work related
function (other than alcohol served generally in connection with such
function). Should Executive commit or be alleged to have committed a felony
offense or a misdemeanor of the character specified in clause (i), Charter may
suspend Executive with pay. If Executive is subsequently convicted with
respect to the matters giving rise to the suspension, Executive shall
immediately repay all compensation or other amounts paid him hereunder from the
date of the suspension and any of the Executive Options or Shares which vested
after the date of suspension shall forthwith be cancelled and if theretofore
sold by Executive, the cash value thereof paid to Charter.

         7.3     Effect of Termination. In the event of the termination of this
Agreement by Charter without Cause or by Executive For Good Reason, Charter
shall pay to the Executive an amount equal to the aggregate base salary due the
Executive during the remainder of the Term and a full prorated bonus for the
year in which termination occurs. Upon termination of this Agreement by
Charter for Cause or by Executive without Good Reason, then the Executive shall
cease to be entitled to receive any compensation or other payments with respect
to periods after the date of such termination.

8.     Covenant Not to Compete; Confidentiality.

         8.1     Covenant Not to Compete. The Executive recognizes and acknowledges
that Charter is placing its confidence and trust in the Executive. The
Executive, therefore, covenants and agrees that as to clauses (a), (b), (c) and
(e) hereof during the Executive’s employment with Charter and solely as to
clause (d) the specific time period provided in such clause, the Executive
shall not, either directly or indirectly, without the prior written consent of
the Board:

                  a.     Engage in or carry on any business or in any way become associated with
any business which is similar to or is in competition with the Business of
Charter. As used in this Section 8, the term “Business of Charter” shall mean
the business of owning or operating cable television systems and related
businesses.

                  b.     Solicit the business of any person or entity, on behalf of himself or
any other person or entity, which is or has been at any time during the term of
this Agreement a customer or supplier of Charter including, but not limited to,
former or present customers or suppliers with whom the Executive has had
personal contact during, or by reason of, his relationship with Charter.

                  c.     Be or become an employee, agent. consultant, representative, director
or officer of, or be otherwise in any manner associated with, any person, firm,
corporation, association or other entity which is engaged in or is carrying on
any business which is in competition with the Business of Charter;

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                  d.     For a period of twenty-four (24) months after termination of the
Executive’s employment for any reason whether by Charter or Executive, solicit
directly or indirectly for employment or employ (or directly or indirectly
cause any entity in which the Executive has an interest or is employed by to
solicit or employ), any person employed by Charter or any of its subsidiaries
at the time of such termination; provided however, that if such termination
occurs after January 1, 2005, and is by Charter without Cause or by the
Executive with Good Reason, then the applicable period shall be twelve (12)
months after termination of employment; or

                  e.     Be or become a shareholder, joint venturer, owner (in whole or in
part), or partner, or be or become associated with or have any proprietary or
financial interest in or of any firm, corporation, association or other entity
which is engaged in or is carrying on any business which is similar to or in
competition with the Business of Charter, provided, however, that nothing
contained in this Section 8 shall prohibit the Executive from owning less than
2% of the shares of a publicly held corporation engaged in the Business of
Charter.

                           The Executive hereby recognizes and acknowledges that the existing
Business of Charter extends throughout the United States of America and
therefore agrees that the covenants not to compete contained in this Section 8
shall be applicable nationally. In the event that a court of competent
jurisdiction determines that the scope of the non-compete provisions set forth
in this Section 8 are unenforceable in any respect, then these provisions shall
be deemed to be modified as necessary so that the scope of the non-compete
provisions contained herein are nonetheless as broad as possible and yet
enforceable under applicable law in accordance with their terms.

         8.2     Confidentiality; Non-Disparagement. The Executive will not divulge,
and will not permit or suffer the divulgence of, any confidential knowledge or
confidential information with respect to the operations or finances of Charter
or any of its Affiliates or with respect to confidential or secret customer
lists, processes, machinery, plans, devices or products licensed, manufactured
or sold, or services rendered, by Charter or any of its Affiliates other than
in the regular course of business of Charter or as required by law; provided,
however, that the Executive has no obligation, express or implied, to refrain
from using or disclosing to others any such knowledge or information which is
or hereafter shall become available to the public otherwise than by disclosure
by the Executive in breach of this Agreement. Executive will not directly or
indirectly disparage or otherwise make adverse references to Charter or any of
its officers, directors, employees or Affiliates at any time during or after
his employment with Charter.

9.     Notices.

         Any notice or other communication required or permitted to be given
hereunder shall be in writing and shall be sufficiently given if delivered in
person or transmitted by facsimile or similar means of recorded electronic
communication to the relevant party as follows:

                  a.     in the case of the Executive, to the address set forth under his name
on the signature page hereto.

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	 	 	Charter Communications, Inc.
	
	
	
	

	 	 	12405 Powerscourt Drive
	
	
	
	

	 	 	St. Louis, MO 63101
	
	
	
	

	 	 	
Attn:
	 	Curtis S. Shaw
	
	
	
	

	 	 	 	 	Senior Vice President,
	
	
	
	

	 	 	 	 	General Counsel and Secretary
	
	
	
	

	 	 	
Telephone:
	 	 	314-543-2308
	
	
	
	

	 	 	
Facsimile:
	 	 	314-965-8793
	
	
	
	

	 	 	
E-mail:
	 	 	cshaw@chartercom.com
	
	
	
	

	 	 	 	 	 	 
	
	
	
	

	 	 	 	 	 	 
	
	
	
	

	 	 	with a copy to: to:
	
	
	
	

	 	 	 	 	 	 
	
	
	
	

	 	 	Irell & Manella LLP
	
	
	
	

	 	 	1800 Avenue of the Stars, Suite 900
	
	
	
	

	 	 	Los Angeles, CA 90067
	
	
	
	

	 	 	
Attn:
	 	Alvin Segel
	
	
	
	

	 	 	
Telephone:
	 	 	310 277 1010
	
	
	
	

	 	 	
Facsimile:
	 	 	310 203 7199
	
	
	
	

	 	 	
E-mail:
	 	 	asegel@irell.com

                  Any such notice or other communication shall be deemed to have been given
and received on the day on which it is delivered or telecopied (or, if such day
is not a business day or if the notice or other communication is not telecopied
during business hours, at the place of receipt, on the next following business
day). Any party may change its address for the purposes of this Section by
giving notice to the other parties in accordance with the foregoing.

10.     Assignability and Enforceability. This Agreement shall be binding on and
enforceable by the parties and their respective successors and permitted
assigns. No party may assign any of its rights or benefits under this
Agreement to any person without the prior written consent of the other party.

11.     Expenses of this Agreement. Each party shall bear its own costs and
expenses (including, without limitation, legal, accounting and other
professional fees) incurred in connection with this Agreement or the
transactions contemplated hereby.

12.     Consultation. The parties shall consult with each other before issuing any
press release or making any other public announcement with respect to this
Agreement or the transactions contemplated hereby and, except as required by
any applicable law or regulatory or stock exchange requirement, neither of them
shall issue any such press release or make any such public announcement without
the prior written consent of the other, which consent shall not be unreasonably
withheld or delayed.

13.     Governing Law. This Agreement shall be governed and construed in accordance
with the laws of the State of Delaware, without giving effect to the principles
of conflicts of laws thereof.

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14.     Counterparts. This Agreement may be executed in counterparts, each of which
shall constitute an original and all of which taken together shall constitute
one and the same instrument.

15.     Currency. Unless otherwise indicated, all dollar amounts in this Agreement
are expressed in United States dollars.

16.     Sections and Headings. The division of this Agreement into Sections and the
insertion of headings are for reference purposes only and shall not affect the
interpretation of this Agreement.

17.     Number and Gender. In this Agreement, words importing the singular number
only shall include the plural and vice versa and words importing gender shall
include all genders.

18.     Entire Agreement. This agreement and any agreements or documents referred
to herein or executed contemporaneously herewith, constitutes the entire
agreement among the parties with respect to the subject matter hereof and
supersedes all prior agreements, understandings, negotiations and discussions,
whether written or oral. There are no conditions, covenants, agreements,
representations, warranties or other provisions, express or implied,
collateral, statutory or otherwise, relating to the subject matter hereof
except as herein provided.

19.     Severability. If any provision of this Agreement is determined by a court
of competent jurisdiction to be invalid, illegal or unenforceable in any
respect, such determination shall not impair or affect the validity, legality
or enforceability of the remaining provisions hereof, and each provision is
hereby declared to be separate, severable and distinct.

20.     Amendments and Waivers. No amendment or waiver of any provision of this
Agreement shall be binding on any party unless consented to in writing by such
party. No waiver of any provision of this Agreement shall be construed as a
waiver of any other provision nor shall any waiver constitute a continuing
waiver unless otherwise expressly provided. No provision of this Agreement
shall be deemed waived by a course of conduct unless such waiver is in writing
signed by all parties and stating specifically that it was intended to modify
this Agreement.

21.     Taxes; Withholding. All amounts payable hereunder shall be subject to all
applicable withholding requirements under federal, state and local tax law.

22.     Survival. The provisions of Sections 6, 8.1(d), 12 and 13 shall survive
the termination of this Agreement.

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         IN WITNESS WHEREOF the parties have executed this Agreement.

	 	 	 	 	 
	 	 	CHARTER COMMUNICATIONS, INC.
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By:
	 	/s/ Curtis S. Shaw

Authorized Signatory
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	 	 	/s/ David L. McCall

David L. McCall
	
	
	
	

	 	 	 	 	P.O. Box 168
	
	
	
	

	 	 	 	 	Laurens, South Carolina 29360

-8-EX-10.7: EMPLOYMENT AGREEMENT

 

Exhibit 10.7

Conformed Copy

EMPLOYMENT AGREEMENT

         This Employment Agreement is made as of the 30th day of October 2001, by
and between James H. Smith, III, an individual residing in the State of
Colorado (the “Executive”), and Charter Communications, Inc., a Delaware
corporation (“Charter”), with reference to the following facts:

         Charter wishes to retain Executive to serve as Senior Vice President of
Operations – Western Division of Charter from the date hereof and on the terms
and conditions set forth herein;

         Executive desires to serve as Senior Vice President of Operations –
Western Division of Charter from the date hereof and on the terms and
conditions set forth herein;

         NOW, THEREFORE, in consideration of the mutual covenants hereinafter set
forth, the parties hereto hereby agree as follows:

1.     Interpretation.

         1.1     Defined Terms.

                  “Affiliate” shall mean with respect to any person or entity any other
person or entity who controls, is controlled by or is under common control with
such person or entity.

                  “Allen” shall mean Paul G. Allen.

                  “Board” shall mean the Board of Directors of Charter or a committee
thereof.

                  “Change of Control” means (a) a sale of more than 49.9% of the outstanding
capital stock of Charter in a single or related series of transactions, except
where Allen and his Affiliates retain effective voting control of Charter, the
merger or consolidation of Charter with or into any other corporation or
entity, other than a wholly-owned subsidiary of Charter, except where Allen and
his Affiliates have effective voting control of the surviving entity, or any
other transaction, or event, a result of which is that Allen holds less than
50.1% of the voting power of the surviving entity, except where Allen and his
Affiliates retain effective voting control of Charter, or a sale of all or
substantially all of the assets of Charter (other than to an entity
majority-owned or controlled by Allen and his Affiliates); where , in any such
case (b) Executive’s employment with Charter is terminated or his duties are
materially diminished (it being understood that neither Charter’s failure to be
a “public” company as such term is commonly understood nor his obligation, if
any, to report to a committee of the Board following any merger or similar
transaction constitute a material diminution in Executive’s duties under this
Agreement).

2.     Employment, Duties and Authority.

         Charter hereby agrees to employ the Executive, and the Executive agrees to
be employed, as Senior Vice President of Operations — Western Division of
Charter. As Senior Vice President of Operations — Western Division of Charter,
the Executive shall report directly to the Executive Vice President and Chief
Operating Officer of Charter, and, subject

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Exhibit 10.7

Conformed Copy

to the control and supervision of such Executive Vice President and Chief
Operating Officer of Charter, shall have such duties and responsibilities as
are typically performed by a divisional head of operations and such other
executive duties not inconsistent with the foregoing as may be assigned to
Executive from time to time. The Executive shall devote substantially all of
his business time, attention, energies, best efforts and skills to the diligent
performance of his duties hereunder. Notwithstanding the foregoing, it is
understood that the Executive may expend a reasonable amount of time for
personal. charitable, investment and other activities so long as such
activities shall not interfere in any material respect with the performance by
the Executive of his duties and responsibilities hereunder.

3.     Term.

         The term of this Agreement shall commence on the date hereof and shall
terminate on December 31, 2005 (the “Term”).

4.     Compensation and Benefits.

         4.1     Cash Compensation.

                  a. Base Salary. During the Term of this Agreement, Charter shall pay the
Executive an annual base salary at the rate of $300,000 or such higher rate as
may from time to time be determined by the Board in its discretion, which shall
be payable consistent With Charter’s payroll practices.

                  b. Bonus. The Executive shall be eligible to receive an annual target
bonus equal to forty percent of Executive’s base salary, the amount of such
bonus to be determined and paid in accordance with Charter’s Executive Bonus
Policy, consistent with past practices. Executive shall also be eligible to be
considered for additional bonuses at the discretion of the Board. With respect
to the year ended December 31, 2001, Executive shall be paid a bonus of
$120,000 by January 15, 2002.

         4.2      Benefit Plans. The Executive shall be entitled to participate in any
disability insurance, pension, or other benefit plan of Charter now existing or
hereafter adopted for the benefit of employees or executives of Charter
generally. To the extent that Charter does not provide life insurance in an
amount at least equal to the unpaid amount of Executive’s base salary through
the end of the Term, Charter shall continue to pay to Executive’s estate an
amount equal to Executive’s base salary, in installments, through the end of
the Term.

         4.3     Vacation. Charter acknowledges that the Executive currently has three
weeks of accrued vacation (which Charter, at its sole discretion, may
compensate Executive for in lieu of having Executive utilize such vacation).
The Executive shall be entitled to compensated vacation in each fiscal year
consistent with Charter’s policy, to be taken at times which do not
unreasonably interfere with the performance of the Executive’s duties
hereunder. Unused vacation time shall be treated in accordance with Charter’s
policy.

         4.4     Expenses. The Executive shall be entitled to receive reimbursement
for all reasonable out-of pocket expenses incurred by the Executive in the
performance of his duties hereunder, provided that such expenses are incurred
and accounted for in accordance with the policies and procedures established by
Charter.

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Exhibit 10.7

Conformed Copy

5.     Restricted Stock.

         As a matter of separate inducement and agreement in connection with his
employment hereunder and not in lieu of any salary or other compensation,
Charter shall issue to the Executive 35,000 Shares of Class A Common Stock of
Charter (the “Shares”). The restrictions on the Shares shall lapse and the
grant shall otherwise have the terms and conditions set forth in the form of
Restricted Stock Agreement previously delivered to the Executive.

6.     Indemnification.

         Charter agrees to indemnity and hold harmless to the maximum extent
permitted by law the Executive from and against any claims, damages,
liabilities, losses, costs or expenses in connection with or arising out of the
performance by the Executive of his duties as an officer of Charter or any of
its subsidiaries or Affiliates.

7.     Termination. This Agreement may be terminated as follows:

         7.1     By the Executive for Good Reason. The Executive may terminate this
Agreement for Good Reason (as defined below) upon thirty (30) days’ advance
written notice to Charter. “Good Reason” shall exist if, without the
Executive’s consent: (A) there is an assignment to the Executive of any duties
materially inconsistent with, or which constitutes a material reduction of the
Executive’s position, duties, responsibilities, status or authority with
Charter (it being understood that Charter’s cessation as a “public” company
shall not be a material reduction in the Executive’s position, duties,
responsibilities, status or authority) and Charter shall not have rectified
same within the later of (a) thirty (30) days of written notice from the
Executive (b) or if Charter elects, within thirty (30) days after receipt of
such written notice, to require that any alleged claim of Good Reason be
submitted to binding arbitration, then ten days (10) days after any
determination adverse to Charter to rectify such event (any such arbitration
shall be held in St. Louis under the local arbitration rules of JAMS or other
entity mutually agreed to and such arbitration decision shall be made no later
than sixty (60) days after Charter’s election to require such arbitration); (B)
the Executive is required to report, directly or indirectly to persons other
than the Executive Vice President and Chief Operating Officer of Charter
(except that Executive may be required to report to a Board committee following
any merger or similar transaction); (C) removal of the Executive from the
position he holds pursuant hereto, except in connection with the termination of
the Executive for Cause (as defined below); (D) the Executive’s principal place
of business shall be outside the Denver, Colorado area; or (e) a Change of
Control.

         7.2     By Charter for Cause. Charter may terminate this Agreement for Cause
upon thirty (30) days’ advance written notice to the Executive. “Cause” shall
mean (i) conviction of a felony offense or of a misdemeanor that involves
dishonesty or moral turpitude; (ii) the refusal to comply with the lawful
directives of Executive Vice President and Chief Operating Officer, the Chief
Executive Officer or the Board of Charter, within ten (10) days after written
notice of such directive from the Executive Vice President and Chief Operating
Officer, the Chief Executive Officer or the Board of Charter; (iii) conduct on
the part of the Executive in the course of his employment which constitutes
gross negligence or

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Exhibit 10.7

Conformed Copy

willful misconduct which conduct is not cured within ten (10) days after
written notice thereof from the Chief Executive Officer or the Board; (iv) the
Executive’s breach of his fiduciary duties to the Company; (v) the Executive’s
death or his Disability (as defined in Charter’s 2001 Stock Incentive Plan); or
(vi) the Executive’s possession or use of illegal drugs or excessive use of
alcohol on Company premises on work time or at a work related function (other
than alcohol served generally in connection with such function). Should
Executive commit or be alleged to have committed a felony offense or a
misdemeanor of the character specified in clause (i), Charter may suspend
Executive with pay. If Executive is subsequently convicted with respect to the
matters giving rise to the suspension, Executive shall immediately repay all
compensation or other amounts paid him hereunder from the date of the
suspension and any of the Executive Options or Shares which vested after the
date of suspension shall forthwith be cancelled and if theretofore sold by
Executive, the cash value thereof paid to Charter.

         7.3     Effect of Termination. In the event of the termination of this
Agreement by Charter without Cause or by Executive For Good Reason, Charter
shall pay to the Executive an amount equal to the aggregate base salary due the
Executive during the remainder of the Term and a full prorated bonus for the
year in which termination occurs. Upon termination of this Agreement by
Charter for Cause or by Executive without Good Reason, then the Executive shall
cease to be entitled to receive any compensation or other payments with respect
to periods after the date of such termination.

8.     Covenant Not to Compete; Confidentiality.

         8.1     Covenant Not to Compete. The Executive recognizes and acknowledges
that Charter is placing its confidence and trust in the Executive. The
Executive, therefore, covenants and agrees that as to clauses (a), (b), (c) and
(e) hereof during the Executive’s employment with Charter and solely as to
clause (d) the specific time period provided in such clause, the Executive
shall not, either directly or indirectly, without the prior written consent of
the Board:

                  a. Engage in or carry on any business or in any way become associated with
any business which is similar to or is in competition with the Business of
Charter. As used in this Section 8, the term “Business of Charter” shall mean
the business of owning or operating cable television systems and related
businesses.

                  b. Solicit the business of any person or entity, on behalf of himself or
any other person or entity, which is or has been at any time during the term of
this Agreement a customer or supplier of Charter including, but not limited to,
former or present customers or suppliers with whom the Executive has had
personal contact during, or by reason of, his relationship with Charter.

                  c. Be or become an employee, agent. consultant, representative, director
or officer of, or be otherwise in any manner associated with, any person, firm,
corporation, association or other entity which is engaged in or is carrying on
any business which is in competition with the Business of Charter;

4

 

Exhibit 10.7

Conformed Copy

                  d. For a period of twenty-four (24) months after termination of the
Executive’s employment for any reason whether by Charter or Executive, solicit
directly or indirectly for employment or employ (or directly or indirectly
cause any entity in which the Executive has an interest or is employed by to
solicit or employ), any person employed by Charter or any of its subsidiaries
at the time of such termination; provided however, that if such termination
occurs after January 1, 2005, and is by Charter without Cause or by the
Executive with Good Reason, then the applicable period shall be twelve (12)
months after termination of employment; or

                  e. Be or become a shareholder, joint venturer, owner (in whole or in
part), or partner, or be or become associated with or have any proprietary or
financial interest in or of any firm, corporation, association or other entity
which is engaged in or is carrying on any business which is similar to or in
competition with the Business of Charter, provided, however, that nothing
contained in this Section 8 shall prohibit the Executive from owning less than
2% of the shares of a publicly held corporation engaged in the Business of
Charter.

                           The Executive hereby recognizes and acknowledges that the existing
Business of Charter extends throughout the United States of America and
therefore agrees that the covenants not to compete contained in this Section 8
shall be applicable nationally. In the event that a court of competent
jurisdiction determines that the scope of the non-compete provisions set forth
in this Section 8 are unenforceable in any respect, then these provisions shall
be deemed to be modified as necessary so that the scope of the non-compete
provisions contained herein are nonetheless as broad as possible and yet
enforceable under applicable law in accordance with their terms.

         8.2     Confidentiality; Non-Disparagement. The Executive will not divulge,
and will not permit or suffer the divulgence of, any confidential knowledge or
confidential information with respect to the operations or finances of Charter
or any of its Affiliates or with respect to confidential or secret customer
lists, processes, machinery, plans, devices or products licensed, manufactured
or sold, or services rendered, by Charter or any of its Affiliates other than
in the regular course of business of Charter or as required by law; provided,
however, that the Executive has no obligation, express or implied, to refrain
from using or disclosing to others any such knowledge or information which is
or hereafter shall become available to the public otherwise than by disclosure
by the Executive in breach of this Agreement. Executive will not directly or
indirectly disparage or otherwise make adverse references to Charter or any of
its officers, directors, employees or Affiliates at any time during or after
his employment with Charter.

9.     Notices.

         Any notice or other communication required or permitted to be given
hereunder shall be in writing and shall be sufficiently given if delivered in
person or transmitted by facsimile or similar means of recorded electronic
communication to the relevant party as follows:

                  a. in the case of the Executive, to the address set forth under his name
on the signature page hereto.

5

 

Exhibit 10.7

Conformed Copy

	 	Charter Communications, Inc.

12405 Powerscourt Drive

St. Louis, MO 63101

Attn: Curtis S. Shaw

           Senior Vice President,

           General Counsel and Secretary

Telephone:   314-543-2308

Facsimile:      314-965-8793

E-mail:  cshaw@chartercom.com

	 	with a copy to:

	 	Irell & Manella LLP

1800 Avenue of the Stars, Suite 900

Los Angeles, CA 90067

Attn: Alvin Segel

Telephone:   310 277 1010

Facsimile:      310 203 7199

E-mail: asegel@irell.com

         Any such notice or other communication shall be deemed to have been given
and received on the day on which it is delivered or telecopied (or, if such day
is not a business day or if the notice or other communication is not telecopied
during business hours, at the place of receipt, on the next following business
day). Any party may change its address for the purposes of this Section by
giving notice to the other parties in accordance with the foregoing.

10.     Assignability and Enforceability. This Agreement shall be binding on and
enforceable by the parties and their respective successors and permitted
assigns. No party may assign any of its rights or benefits under this
Agreement to any person without the prior written consent of the other party.

11.     Expenses of this Agreement. Each party shall bear its own costs and
expenses (including, without limitation, legal, accounting and other
professional fees) incurred in connection with this Agreement or the
transactions contemplated hereby.

12.     Consultation. The parties shall consult with each other before issuing any
press release or making any other public announcement with respect to this
Agreement or the transactions contemplated hereby and, except as required by
any applicable law or regulatory or stock exchange requirement, neither of them
shall issue any such press release or make any such public announcement without
the prior written consent of the other, which consent shall not be unreasonably
withheld or delayed.

13.     Governing Law. This Agreement shall be governed and construed in accordance
with the laws of the State of Delaware, without giving effect to the principles
of conflicts of laws thereof.

6

 

Exhibit 10.7

Conformed Copy

14.     Counterparts. This Agreement may be executed in counterparts, each of which
shall constitute an original and all of which taken together shall constitute
one and the same instrument.

15.     Currency. Unless otherwise indicated, all dollar amounts in this Agreement
are expressed in United States dollars.

16.     Sections and Headings. The division of this Agreement into Sections and the
insertion of headings are for reference purposes only and shall not affect the
interpretation of this Agreement.

17.     Number and Gender. In this Agreement, words importing the singular number
only shall include the plural and vice versa and words importing gender shall
include all genders.

18.     Entire Agreement. This agreement and any agreements or documents referred
to herein or executed contemporaneously herewith, constitutes the entire
agreement among the parties with respect to the subject matter hereof and
supersedes all prior agreements, understandings, negotiations and discussions,
whether written or oral. There are no conditions, covenants, agreements,
representations, warranties or other provisions, express or implied,
collateral, statutory or otherwise, relating to the subject matter hereof
except as herein provided.

19.     Severability. If any provision of this Agreement is determined by a court
of competent jurisdiction to be invalid, illegal or unenforceable in any
respect, such determination shall not impair or affect the validity, legality
or enforceability of the remaining provisions hereof, and each provision is
hereby declared to be separate, severable and distinct.

20.     Amendments and Waivers. No amendment or waiver of any provision of this
Agreement shall be binding on any party unless consented to in writing by such
party. No waiver of any provision of this Agreement shall be construed as a
waiver of any other provision nor shall any waiver constitute a continuing
waiver unless otherwise expressly provided. No provision of this Agreement
shall be deemed waived by a course of conduct unless such waiver is in writing
signed by all parties and stating specifically that it was intended to modify
this Agreement.

21.     Taxes; Withholding. All amounts payable hereunder shall be subject to all
applicable withholding requirements under federal, state and local tax law.

22.     Survival. The provisions of Sections 6, 8.1(d), 12 and 13 shall survive
the termination of this Agreement.

7

 

Exhibit 10.7

Conformed Copy

         IN WITNESS WHEREOF the parties have executed this Agreement.

	 	 	 	 	 
	 	 	CHARTER COMMUNICATIONS, INC.
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By:
	 	/s/ Curtis S. Shaw

Authorized Signatory
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	 	 	/s/ James H. Smith, III

James H. Smith, III

241 Lead King Drive

Castle Rock, Colorado 80104

8

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